Real estate agents here......

I thought the seller wouldn't get any money during a short sale...

If the guy is asking for the money up front, then he is a double scammer. Just because you submit an offer doesn't mean the bank will accept it. And even if the bank does accept it, there is no assurance it will go through.

Just curious, but what is the house listed for, and how much of a kickback is he/she wanting?

If the seller is just wanting some money to help them relocate because they are as broke as a joke, then you could structure it so that your friend buys some furniture/fixtures for $X but that the purchase of that furniture is contingent upon the house closing and they get paid at COE.

If the seller is asking for a large amount of $ because he/she is an a-hole, walk away. God knows what they will remove when they move out. I've seen houses totally cleaned out. The only reason i knew the kitchen was the kitchen was because of the 2 pipes sticking out of the wall.

Blame obama.

Quote from BargainSnatcher : The only reason i knew the kitchen was the kitchen was because of the 2 pipes sticking out of the wall.

Amateurs, pipes have value. Homes are gutted for their pipes and wire.

Quote from nizzy1115 : This is what I was thinking too. Verbal only face to face agreement of an extra 20k to seller after closing then give nothing. They wont be able to do anything. Oh and be sure to check for voice recorders at the time of the convo too. It'd be the equivalent to someone going to the police because their hit man never completed the job.

Even if the seller did record the conversation, what's he going to do when you don't pay him? Go to a judge and say, I have myself on tape asking for an illegal kickback, please don't prosecute me but do make the buyer pay me the kickback.

Or maybe I misread what you said. I'm high on vicodin at the moment, just got back from the dentist.

The seller really has no ability to accept any offer or to prioritize an offer in a short sale situation. The bank or whoever owns the mortgage on the property would be the ones who would decide whether or not to accept the offer, they are looking out for their own interests and could care less what the seller wants.

If it is in a truly desirable area though, I could seem some sucker falling for it. Greed makes people do stupid things some times. I would recommend staying far away from a situation like this.

Offer to give him the money, in return for a passionate night of love making with the sellers wife. Then cancel the sale and send them a note that the check is no good and you have herpes.

Quote from BargainSnatcher : If the guy is asking for the money up front, then he is a double scammer. Just because you submit an offer doesn't mean the bank will accept it. And even if the bank does accept it, there is no assurance it will go through. Just curious, but what is the house listed for, and how much of a kickback is he/she wanting? If the seller is just wanting some money to help them relocate because they are as broke as a joke, then you could structure it so that your friend buys some furniture/fixtures for $X but that the purchase of that furniture is contingent upon the house closing and they get paid at COE. If the seller is asking for a large amount of $ because he/she is an a-hole, walk away. God knows what they will remove when they move out. I've seen houses totally cleaned out. The only reason i knew the kitchen was the kitchen was because of the 2 pipes sticking out of the wall.

The scenario with the seller is a scam. Supposedly, he is a rich engineer in Silicon Valley who makes over $150k per year. He stopped paying his mortgage over a year ago to try to get the bank to do a debt reduction. They didn't go with it and are forcing him to go into short sale or foreclosure.

The house is valued at about $850k and probably sell for that much very quickly if it was listed normally. However, since it went into short sale, the bank wants about $700k for it. The seller however wants a kickback under the table for $50k-60k from the buyer. That's pretty much all I know. Apparently, his agent is in on all this too because he keeps emailing my friend to get him to go with the kickback.

If it were me, I'd report the agent to the state real estate board. But, my friend still has hopes to get the house somehow. I'm thinking that the seller is just dragging this on because he actually doesn't want to sell and wants the bank to do a debt reduction on his original mortgage....his original intent all along.

Quote from z2g : The scenario with the seller is a scam. Supposedly, he is a rich engineer in Silicon Valley who makes over $150k per year. He stopped paying his mortgage over a year ago to try to get the bank to do a debt reduction. They didn't go with it and are forcing him to go into short sale or foreclosure. The house is valued at about $850k and probably sell for that much very quickly if it was listed normally. However, since it went into short sale, the bank wants about $700k for it. The seller however wants a kickback under the table for $50k-60k from the buyer. That's pretty much all I know. Apparently, his agent is in on all this too because he keeps emailing my friend to get him to go with the kickback. If it were me, I'd report the agent to the state real estate board. But, my friend still has hopes to get the house somehow. I'm thinking that the seller is just dragging this on because he actually doesn't want to sell and wants the bank to do a debt reduction on his original mortgage....his original intent all along.

Report them, get them arrested, and buy it in foreclosure.

850k is a lot of house for that salary.

Quote from ALVSGIRLY : 850k is a lot of house for that salary.

He has a wife too. My friend said that their annual household income is over $200k. Don't know how he got that info.

Quote from z2g : He has a wife too. My friend said that their annual household income is over $200k. Don't know how he got that info.

Ours is too and there is no way. He may be older than us so he has more saved.

I though short sales messed up your credit too just not as bad as foreclosure and they only did it in certain situations. Idk really much about them. Just heard a few things but never actually researched them.

Quote from ALVSGIRLY : Ours is too and there is no way. He may be older than us so he has more saved. I though short sales messed up your credit too just not as bad as foreclosure and they only did it in certain situations. Idk really much about them. Just heard a few things but never actually researched them.

Well, if you go by the mortage companies' formula as far as income to mortgage, it does fall under that 40% of your monthly income total before taxes. At $200k per year, you're taking home roughly $16k per month. A mortgage (plus property tax) for a $850k home (assuming you put down 10-20%) is about $5k per month. So, that's still okay to qualify for such a mortgage, I think.

Quote from z2g : Well, if you go by the mortage companies' formula as far as income to mortgage, it does fall under that 40% of your monthly income total before taxes. At $200k per year, you're taking home roughly $16k per month. A mortgage (plus property tax) for a $850k home (assuming you put down 10-20%) is about $5k per month. So, that's still okay to qualify for such a mortgage, I think.

I just think of all the extra maintenance and bills on a home that expensive. Plus we have our cars and savings. We save a little over 30% right now and we're young. We also like to blow money eating out and shopping too and traveling when we have the time. We enjoy that though.