Do Banks Allow Sellers To Receive Cash At Closing?

Example: If bank agrees to short sale a property at $50K but seller contracts for $60K. Is that normally allowed? Does seller get to keep cash at closing?

Comments(9)

  • fmmp11th March, 2010

    Makes sense.

  • TheShortSalePro12th March, 2010

    Though closing instructions and short sale approval language can differ from lender to lender, the common element includes, "seller receives zero proceeds"

  • damionwebb014th January, 2011

    The only time funds can go back to the seller is if they are involved in a HAFA short sale. And even then, it is the bank giving them 3K to move. No funds are being passed from buyer to seller. The HUD1 shows a credit to the seller from the bank.

  • lukasbmw13th January, 2011

    Quote:
    On 2011-01-04 15:19, damionwebb01 wrote:
    The only time funds can go back to the seller is if they are involved in a HAFA short sale. And even then, it is the bank giving them 3K to move. No funds are being passed from buyer to seller. The HUD1 shows a credit to the seller from the bank.


    Exactly.

  • ddstew12th February, 2011

    10 ways to lose a realtor license: #2. Misrepresentation.

  • ddstew14th February, 2011

    Avoid all conflict and possible misrepresentation by disclosing and taking it for a lower price equal to the commission...you will make more profit and avoid any questions!!! The bank will net exactly the same amount in the end -- a Win-Win!

  • cjmazur15th February, 2011

    Why do need an LLC.

    You can always form an LLC down the road.

  • ddstew15th February, 2011

    No, I was saying if you are buying for "family" then work a lower price and forget the commission, all will work out better in the end! Less tax, more gain, and no question as to improper conduct for the realtor...

  • bargain7615th February, 2011

    I have recently been in a confrontational short sale situation where the Realtor would not present my bid.... even though it was 20% higher than a supposed 3rd party.
    Turns out 3rd party was her husband. They got greedy. No disclosures. Used a Maiden name. Realtor license was in her married name.
    No telling how it will turn out. We busted them on their 5th deal. It smells like fraud to me. Could be jail time. But, who knows?

    What we are trying to tell you is to STAY CLEAR of appearance of impropriety. OK?
    [addsig]

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