Close

See current mortgage rates on Zillow Mortgage Marketplace

Profile picture for TampaDeb

I have asked for $10,000 from the investor. Am being duped?

I told the investor I wanted $10k to let him have my house. Short Sale! I wanted something in writng. He sid it will be in the closing as "seller concessions". From whtI have rad "seller concessions" is money I WILL PAY! Am I being ripped off? I understand that as a short sale I am not due any money. But relocating eight people is expensive. Am I going about this the wrong way?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 19 2013 - US
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (18)

Lynne L. is correct.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 24 2013
bottom line is if there are seller concessions, that is an amount you are giving the buyer back at closing. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 24 2013
Your question is confusing.  If I am reading this right, it sounds like you want the buyer to give you extra money.

Your lender (if you are the seller) will probably not allow that.  The buyer is probably saying it will be on the HUD-1 so it is disclosed to your lender. That protects him.  When the lender says "no" you will be so far along in the process that he hopes you will go ahead and sell and he will not pay the extra "fee."

If you accept the money and do not tell the bank, you could (I say "could" because I am not an attorney) be committing loan fraud.  The FBI investigates loan fraud.  Sometimes their friends at the IRS help.  

If you are about to go into foreclosure, your lender might give you relocation assistance if you leave the property undamaged and sign paperwork giving them the property.  That would be OK.  IMPORTANT:  It would still be a foreclosure and would negatively impact your credit score.  I have no idea how much your lender would agree to.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 24 2013
Profile picture for Dunes ..
Sorry...I felt it was pretty clear what he meant and saw nothing in the wording or comment that "do you not feel that REA's should be involved in short sale" was implied/suggested..still don't

I've not noticed things before...thanks for the response


 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 24 2013
Profile picture for blub blub blub
I ask cause I have no clue where you would get " do you not feel that REA's should be involved in short sales?" from anything said here...

I asked, because SoCal asked:

Is an REA involved (I am hoping the answer is "no")?

SoCal's comment was unclear to me. I wanted to make sure that it was because SoCal was hoping that an REA wouldn't involve themselves in something like this.  Thus the full question....

Is that because you think the transaction is not on the up and up or do you not feel that REA's should be involved in short sales?

Just looking for a little clarification.  Some may associate a discussion about short sales with that statement and feel REA's should not be involved in short sales.  There's enough "my agent this or my agent that....." comments and confusion out there already.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 24 2013
Agreed, everything needs to be on the HUD.  Before asking the bank or investor for anything else, I would carefully consider the amount they are "forgiving" you for the short sale. Take this into consideration and compare it to the longer term affect that a possible foreclosure could have on your credit and ability to purchase in the future.....that is, ability to buy sooner rather than later.

And needless to say, definitely have your attorney/title company involved.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 20 2013
Yes TampaDeb, you are going about this the wrong way and while Tim & Rachel didn't give you the answer you wanted to hear it was a good answer.


It may be time to call your bank and get some clarity directly from them.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 19 2013
Profile picture for Dunes ..
blub I'm curious why you would lean toward asking
"I'm curious why you hope that an REA is not involved.  Is that because you think the transaction is not on the up and up or do you not feel that REA's should be involved in short sales?

I ask cause I have no clue where you would get " do you not feel that REA's should be involved in short sales?" from anything said here...

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 19 2013
Profile picture for SoCal_Engr
"I'm curious why you hope that an REA is not involved.  Is that because you think the transaction is not on the up and up or do you not feel that REA's should be involved in short sales?"

I am hoping that a REA is not involved because it would be extremely disappointing if one was and this type of stuff is going on. Also, I would hope a REA would do a better job of making sure the transaction is being done correctly/legally.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 19 2013
I have no problem with the "short sale police".   Tell it like it is.

I hope no real estate agent is assisting with this transaction as well. If what is being said is correct -  It's a recipe for a law suit, lose of license and possible incarceration.

First you said you asked the investor for 10K.  The investor is the buyer.  Then you said you understand you get nothing from a short sale but you reference cash for keys and the expense of moving 8 people.

Is your short sale approved by the bank?  Has the bank signed your sales agreement as well as you and the buyer? 

You mentioned you read seller concessions are money you pay.  That is correct.  Maybe the buyer is duping you.  If you don't have a professional agent or attorney advising you anything could happen.

Every dime involved in this transaction is reported on the closing documents.  It is illegal to have a written side agreement involving cash which is not disclosed on the HUD1.

Cash for keys and short sales do not go hand in hand.  At one time banks offered cash for keys to avoid going through a drawn out legal process. I have not heard of that happening recently.

The bank is already giving you a pass on money you owe if they approve a short sale.  You want them to pay for your move too?

Instead of cherry picking what you have read get professional advice from someone who knows how to handle a short sale.  A real estate agent or attorney.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 19 2013
Profile picture for blub blub blub
You say this is a short sale. Is an REA involved (I am hoping the answer is "no")? Has the lender signed off on the short sale?

I'm curious why you hope that an REA is not involved.  Is that because you think the transaction is not on the up and up or do you not feel that REA's should be involved in short sales?


If an owner attempts to "short sell", and all the legal boxes aren't checked in the process, could the owner end up transferring title to an unscrupulous buyer...and still find themselves on-the-hook with the original lender.
  

The original owner needs to satisfy the loan when transferring the title.  If they go through a title company, then all liens need to be satisfied before the title will transfer.

If they sell to someone and don't go through the title company/title transfer, then the original owner is still on the hook for the loan.  The new owner could very well then be owning a property with a lien on it.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 19 2013
Who's who here? Is the "investor" your lender, Deb? Or is it the buyer?

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 19 2013
Having 'sellers concessions' in the HUD-1 makes me wonder of the bank is involved as they typically don't let the seller walk away with cash (hence the short sale).

If there is no 3rd party approval from the bank, the original owner is still on the hook for the loan regardless of who accepts title. If it were that easy to essentially quit claim deed to a property and escape the underlying note, everyone would be doing it.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 19 2013
Thank you for being the short sale police

You're welcome !
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 19 2013
Profile picture for SoCal_Engr
Wetdawgs is right about "seller concessions".I have a different concern.

You say this is a short sale. Is an REA involved (I am hoping the answer is "no")? Has the lender signed off on the short sale?

Questions to the RE pros...

If an owner attempts to "short sell", and all the legal boxes aren't checked in the process, could the owner end up transferring title to an unscrupulous buyer...and still find themselves on-the-hook with the original lender.

Is the above scenario even possible given the workings of "title"?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 19 2013
Profile picture for wetdawgs
Seller concessions are money you or your lender will pay.

Were you asking for the $10,000 outside the purchase contract?   If so, yes, the previous post is correct.  All money that changes hands in a purchase must be above board on the closing documents. 

"Cash for keys" is something you negotiate with your lender and not a secret payment from an investor.   Please search it on the internet to learn more.   It isn't particularly common and even less common with short sales.

P.S.  If you don't like an answer, that is fine and that is life.  Name calling is not okay.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 19 2013
Profile picture for TampaDeb
Yeah...I didn't see an answer. I understand, as I stated, that in a short sale I get nothing. But I have seen where people get moving expenses. Thank you for being the short sale police but you did not help the question.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 19 2013
You will be going to jail doing it your way. As a short sale you will get nothing, trying to get something under the table is a free ride to jail if the bank finds out.
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
October 19 2013
 
Related Questions
Once I lock a rate with one company can I change vendors?
Profile picture for James Ryan
Latest answer by James Ryan
1 hour 36 minutes ago | 11 answers
What options do I have when my student loan makes my debt to income ratio too high?
Profile picture for Leslie Raymond
Latest answer by Leslie Raymond
1 hour 59 minutes ago | 1 answers
FHA loan underwriting after Deed-in-Lieu.
Profile picture for Terry Minich
Latest answer by Terry Minich
6 hours ago | 14 answers
Buying a home after a short sale with a VA loan Arizona
Profile picture for Terry Minich
Latest answer by Terry Minich
6 hours ago | 7 answers
VA Loan Timeframe after foreclosure
Profile picture for Terry Minich
Latest answer by Terry Minich
8 hours ago | 5 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.