A few years back at a settlement I was a part of I was surrounded by a smiling Buyers agent and the Buyers Lender. They were being overly friendly to me as it seems they had a request they were sure they could talk me into. You see, the lender said he had to change the buyers loan program at the last minute to make it all work out however it required some 'under the table' assistance from the seller in the amount of a few thousand dollars. Hmmmm. To add to the drama the sellers were anxious to get to settlement as they had already moved and purchased a new home and really needed the proceeds from this sale.
Well I took the sellers into another room and told them that what was being asked was illegal. That all monies changing hands on a real estate transaction needed to be on the table and on the settlement sheet. Though disappointed at not going to settlement they understood and agreed completely so we told the lender and agent that when they could show all the money on the HUD1 that we would settle and not before. Then the sellers and I calmly left. Two days later the buyer, agent and title person came to us with all monies showing on the table and settled the property without the sellers contributing at all.
This past week once again I was surrounded by a smiling lender and a buyers agent, who was apprehensive more than smiling, and asked if my seller could write a check 'under the table' to the buyer after settlement. Seems the loan program the lender put the buyer in did not allow the amount of closing that we offered and he wanted the seller to make up the difference by writing a check to the buyer. Seems the lender was trying to save face this time.
Once again I said no and reiterated that it was illegal and that the seller would not do anything 'under the table'. And once again the settlement took place without doing so.
The first time I was shocked to be asked such a question, the second time I was annoyed. To think with all the shake out in this 'new mortgage and real estate reality' that a lender still exists that would ask such a question annoyed me to no end. But...when I thought about it later I guess there are still some agents out there who would have agreed to such a request. After all the buyers agent must have agreed or I would not have been called into their little meeting before settlement.
So to all you agents and lenders who ask me to do such a thing now or in the future please know my answer is
'You can ask...but it's not going to happen'
Actually....don't even ask!!!
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