patrick.net

The SS wants out of the debt. The buyer wants the house.
In this situation who could prove bribery? Both parties have the right to remain silent.

The SS and buyer work together to rob the bank. That's the legal implication. No more, no less.

I'm considering the worst case scenerio.

The seller gets offended and blows the whistle, but who can they blow the whistle to? Their agent? Who cares. But there is a bank involved here that may be getting undercut by the bribery between the SS and the buyer.

I have been able to find several articles of bribing the listing agent, but I can't seem to find a single discussion about bribing a seller directly in a short sale situation.

Are any laws being broken by bribing a short seller?

Roberto, I appreciate the feedback.

Here in the Bay Area, it seems that for sub $300K properties, you cannot even get in the door without 100% cash unless you commit a little fraud ;-) (that's not to say that the guys with 100% cash aren't committing their own fraud too to get one up on the other cash investors).

The chance being taken here is not to save on a few thousand dollars. It's a chance to acquire property that can't be acquired in any other legal way. And let's not ignore that my suggested fraud is a grain of sand in the Sahara Desert of fraud that's happening on the real estate market currently. You know this.

Also, you mentioned that if the bank could prove it, they could sue me for damages. Well, first if my bribery offer isn't accepted, there are no damages. And taking that further, how could one define "damages" if my offer was accepted by the bank. They must have thought it was attractive enough right and not very damaging? Unless there was proof of another higher offer perhaps.

And no, the seller wouldn't collect, at least not in full, until the closure date.

And just as a reminder, this is just a discussion topic.

robertoaribas says

your offer doesn't get "presented to the bank." your offer gets presented to the seller,

Huh? Who is making the decision whether the amount gets approved or not? It's not the seller.

After it gets presented to the seller it gets presented to the bank, right?

You can offer the seller anything you want - but it must be disclosed on the HUD. I have paid moving costs and purchased the sellers 'appliances' on occasion. All were on the HUD and the bank approved (or they didn't bother to look - not sure).

Some realtors said it is OK to offer to buy the seller's appliances provided the amount is within reason. Well, it was a realtor talking. Nuff said.

In cases where the realtor is in control and the home owner is passive the realtor will want something 'extra' to steer the sale your way. One time I was strongly advised to let the agent resell the house once I was done with the renovations.

In the foreclosure / short sale arena corruption is plentiful.

Thanks guys. I think you nailed it and answered my question.