CAN YOU PAY THE SELLER

Hi

I know during a short sale, seller cannot profit from sale, but can you pay the seller outside of escrow and market this idea with preforeclosure sellers. For Example, stating that for thier cooperation at the closing of transaction you would pay them a 2 % fee. Is this legal?

Comments(10)

  • whyK-CA1st February, 2005

    Hi folks.

    Could you tell me the reason why NOT to use bill of sale? I thought if something goes wrong, you can protect yourself by having able to tell them that you pay for personal property not for the real estate. And are you saying to pay by cash then? Any feedback is apreciated.

    Thanks.

  • RICK4301st February, 2005

    Thanks guys, shortsale pro, since you have been involved in many shortsales accross the country, do you find that one must offer the sellers something to have them cooperate with a short sale. Considering the time, tax consequence that they may face, and the discount the buyer recieves on their home, they really isnt that much incentive for most defaulted sellers to work with you on a shortsale otherwise. What do you think? Do you think its a good idea to market the idea that you would pay the seller 2% for thier cooperation and ordeal of a short sale or something of the sort.

  • TheShortSalePro1st February, 2005

    read my essay, "Selling a SS to the Sellers" or, better yet, order the Primer.

  • tjgroup9th February, 2005

    If you offer money outside of the closing, does anyone send the seller a 1099 at the end of the year?

  • Cgstonex14th February, 2005

    What exactly is a short sale?

  • TheShortSalePro14th February, 2005

    a "preforeclosure short sale" is a realty sale transaction that ocuurs when a (usually a mortgage) lienholder(s) agrees to accept less than it is contractually due.

    A preforeclosure short sale may be the indicated technique acquisition when mortgage balance and other liens against the property exceed FMV and anticipated proceeds from sale.

  • kimesha15th February, 2005

    ss pro,
    she is already about 2, maybe 3 months behind. wouldnt it take 2 long to try and sell it on the market?And she doesnt live there. she lives ouy of state as of now.

  • NYBULLY18th February, 2005

    The reason why a sellar would not market of course is because there lender appears to be threatening...and obviously because they do not have the know how to market and sell a house before auction.

  • ryand16th February, 2005

    i was wondering the exact same thing. except i was wondering if there was a way to avoid the deficiency all together. thanks for your help, Ryan

  • TheShortSalePro17th February, 2005

    The short answer is yes... but this is not intended to be legal advice, nor should anyone without a license to practice law dispense any advice whatsoever about bankruptcy...

    There is an issue of fraud. If a Court determines that it was the forethought of the Borrower to assume the unsecured debt, then include it in a bankruptcy petition, the debt and promise to repay the debt may not be dischargable in bankruptcy.

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