Posted by Craig on May 23, 2000 at 02:05:45:
Really it doesn’t happen as often as they would have you believe. Sometimes you can get the seller to credit you after closing for some fix up costs but most lenders don’t allow that. Perhaps some of those folks are buying with a contract for deed and aren’t actually closing on the purchase for some time. In which case when they do actually take title they are refinancing and getting some cash after they pay off the seller. You might hear about people buying and refinancing to get “tax free” cash, however understand it usually takes at least a year until most lenders will recognize any value for the home that is higher than your purchase price. There may be other ways but I havn’t heard them yet.