You can’t. That amount of money cannot be justified as anything other than either a kickback or an inflated value representation to the lender.
Unless the building is in very bad shape, in which case it could be placed in a repair escrow. I’ve done this on two properties (its not very flexible and the checks cannot be made out to the buyer but to the buyer’s vendor) I have also seen HUD and VA repos provide for a repair excrow.
Basically, if its not a legit line item with a number that is in line with what its claiming to be, its goona get caught. The lender does get a copy of the HUD-1 and may decide not to fund on that basis. Its also a criminal act if the house is actually worth $50K less than the sale price you are telling the lender. The Federal penalites for misrepresenting information provided to a lender does include jail time.
You might be in for a loan fraud investigation…and…it is no fun when the man comes to your door and puts his little black wallet with his badge up at eye level and says, “I’m from the FBI and I’d like to talk with you.”…read this article and see.
Re: Offer over the asking price? Giving back some? - Posted by Natalie-VA
Posted by Natalie-VA on March 29, 2006 at 11:58:52:
Bill,
I noticed that the San Diego Association of Realtors took the opportunity to try and slam non-Realtors by saying that these offers typically come from non-Realtors. I think that’s a bunch of B.S. and would like to see their data on that.
This would be on the HUD-1, which the lender gets. The only legit way I know of handling a seller contribution is to cover closing costs. However, this can be substantial. But cash back to the buyer, that’s called a kickback.
I did not see it as trying to slam non_Realtors…merely stating that those who lack the education and training of a good Realtor are more apt to try and “bend the rules…or…modify the situation to meet their desires.”
Haveing once been a broker…I would hope that all good brokers are not involved in this sort of scheme…but one must remember that the loan seasoning issue and false appraisals, etc…were in fact perpatrated by licensee in all the areas.
Re: Offer over the asking price? Giving back some? - Posted by Natalie-VA
Posted by Natalie-VA on March 30, 2006 at 10:09:14:
Bill,
This is sort of off topic, but I would challenge that Realtors have more education and training than non Realtors. I guess I’m overly sensitive to this topic since I am a RE Broker, but not a Realtor. I just feel like Realtors try and make the public believe that they have some kind of higher standard, when the only standard is to pay dues. The whole ethics thing is a joke. They don’t report each other.