In life, there are always little twists that keep it interesting, wouldn't you say? For example, last week I was watching a HGTV show about a couple who were buying their first home somewhere in the Midwest. They had obtained an FHA loan. Because they didn't have the money for a down payment, their parents gave them the cash.

Of course, FHA requires a gift letter from the parents. This gift letter specifically states that the funds are not a loan but a gift. At the end of the show, the couple stood in front of the camera, talking about their home buying experience. The wife looked straight into the camera and admitted on national television that they had committed mortgage fraud. "Oh, we are paying them back," she laughed.

I imagine their real estate agent recoiled in shock.

Just like my Sacramento short sale seller was speechless yesterday. This is a hard working guy who lost his job, and the value of his condo fell to almost 1/3 of what he paid for it several years ago. He hired me as his Sacramento short sale agent to find a buyer. It took about 10 days to get into contract, which is an usually long time for my Sacramento short sale listings.

Yesterday, a negotiator from the Wachovia short sale department called to say the short sale was approved. Not only was it approved, she explained, but this transaction qualified for Wachovia's incentive program, meaning the agents would receive a higher commission than the amount Wachovia generally pays. In addition, the seller would receive cash to move.

I called the seller and left a message, saying I had unexpected news for him. When he called me back, I could sense the trepidation in his voice. He admitted that he had a pit in his stomach. But when I told him he would receive $2,500 for moving expenses, he was at a loss for words. "What do I have to do?" he asked, assuming there was a catch. Nothing. Just sign Wachovia's short sale approval letter and close escrow.

This is one very happy short sale seller right now.