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?
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?
Makes sense.
Though closing instructions and short sale approval language can differ from lender to lender, the common element includes, "seller receives zero proceeds"
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.
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.
10 ways to lose a realtor license: #2. Misrepresentation.
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!
Why do need an LLC.
You can always form an LLC down the road.
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...
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]