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But Real Estate agent told that he can get the house for $350K but ask to pay about $20-25K in cash (apart from the down payment and closing cost) that will not be covered by mortgage. Anyone know why they do like that. Is something like this can happen ?
Please be more specific. Are you saying that they asked for a fee of $20-25K in addition to $350K for the house? Are you saying that this amount is not included in their realtor fee? (i.e. they're asking for a bribe, essentially, to get you a better deal?) Whose agent is this agent? The listing agent? Is the property bank owned? We need a lot more facts than you have given us.
Probably u are talking about a short sale and the listing agent wants commission to be paid by you ( 3500 * 6 = 21k). I am just guessing
20-25K is on top of $350K. If it is bank owned then I can understand what they are trying to do.
It sounds like they are trying to get either a) the commission paid by you in cash, as opposed to rolled into the mortgage, b) the commission paid by you as opposed to the bankster.
I think we still need more specifics here.
It is illegal to have any transaction costs for a RE transfer not be listed on the official closing document, titled a HUD-1. I'm not sure if it's mortgage fraud, but it's some kind of fraud.
It is legal for you to pay the agent $20-$25K out of your pocket, over the home price, but you must list it. Ask the agent if this payment would be on the HUD-1. If a transaction cost is not on the HUD-1, it is because somebody is trying to hide it from somebody else.
Sounds like a short sale and the seller is trying to recoupe some money.
FortWayne
2011 Jul 19, 1:18am
No realtor service is ever worth anything close to that. They are just a middle man in the transaction. All he does is present your offer, you can do that yourself.
Paying someone a bribe of 25,000 for doing absolutely nothing is stupid. You can pay me 25 grand I'll reduce the price for you the way a realtor would... I will simply offer 350 and pocket the 25. Not a bad profit for making one phone call.
Why are you spending so much money of a wooden box with a door? 350 is a lot to begin with.
I recently heard about a scenario where house asking price is $400K. But Real Estate agent told that he can get the house for $350K but ask to pay about $20-25K in cash (apart from the down payment and closing cost) that will not be covered by mortgage. Anyone know why they do like that. Is something like this can happen ?
#housing