Home, Land, Property Buying and Selling - Real Estate Legal Question
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martytime
09-02-08, 12:01 PM
My wife and I have been involved on the buying end of a short sale for 8 months... :wall:
We are getting "close" (for the 6th time now), and the short sale specialist working with the seller wants to rearrange the contract as follows:
-Decrease the contract by $15K
-Have a gentleman's agreement that we cut a check to sellers for $15K at close of escrow, $10K of which will pay off a promissory note to the 2nd lienholder, $5K of which the seller will pocket.
We are obviously NOT ok with the sellers pocketing money on the deal, but "hiding" $10K from the 1st lienholder to backdoor to the 2nd lienholder seems a little shady. Also, it's not stated contractually anywhere.
We have been assured that, while weird, this is very typical in the short sale game. We are not comfortable.
Any advice?
We are getting "close" (for the 6th time now), and the short sale specialist working with the seller wants to rearrange the contract as follows:
-Decrease the contract by $15K
-Have a gentleman's agreement that we cut a check to sellers for $15K at close of escrow, $10K of which will pay off a promissory note to the 2nd lienholder, $5K of which the seller will pocket.
We are obviously NOT ok with the sellers pocketing money on the deal, but "hiding" $10K from the 1st lienholder to backdoor to the 2nd lienholder seems a little shady. Also, it's not stated contractually anywhere.
We have been assured that, while weird, this is very typical in the short sale game. We are not comfortable.
Any advice?