Stacie Colclasure was written a very nice post about her experience with a "season" veteran of the Real Estate world. She has a line in there that just made me jump up and say seasoned means "some one that has not kept up with the times and classes". She wrote
"He will give $2,000 cash to them if they will agree to original list price. "we can't have a paper trail so I will give it to you and you can give it to the buyer."
What jumps out to me first is the possible RESPA violation that this agent might be looking at if he actually does this
But what really gets me is the wanting no paper trail....... Almost like the lender won't know "wink wink"
Guess what Mr. Agent....... We don't care what you do with your commission, but you will put it in the contract and we will disclose it on the HUD 1
I will quote right from the guidelines.......... "the seller or other interested 3rd parties such as real estate agents, builders, developers, etc or a combination of parties may contribute up to 6% of the properties sales price toward the buyer's actual closing cost, prepaid items, discount points and other financing concessions." Any amount over that is treated as an inducement to purchase and reduces the amount of the mortgage.
In this fun market that we are facing right now, I see a lot of banter about buy this home and receive a new car, or a trip or even that lady in Florida that is offer up the opportunity to marry her and buy the house..... any inducement (although I have a hard time placing a $$$ value on the lady) will result in a dollar to dollar reduction in the sales price, appraised value and then the LTV will be set on this lower amount.
So Mr. Wink Wink Realtor Agent...... lets keep it simple and if you want to bump the price up and give the extra back to buyer.... Do it in writing
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