Owners Cannot Profit From Short Sale

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Mortgagee won't allow the homeowner to see any profit from a short sale transaction, right? But some real estate agents have proposed a deal such as this:
The mortgage balance is $200,000. The real estate agent can get the mortgage company to accept a payment of $150,000 as payoff. Then, the agent list the house and sells it for $200,000. The difference of $50,000 can be split between the agent and homeowner.
Now, where does this money come from? The agent gets this money at closing (commission from selling), but then does the homeowner take the rest if they are not 'entitled' to it?

Comments(4)

  • Tedjr8th January, 2004

    Handcuffs right around the corner if the Realtor tries this fraud. Slipping the seller a grand to help move out is one thing but this is big time jailbird fraud with a capital f*^$$%# you to the lender. There are laws against even a conspiracy to committ fraud. Live is way too short to spend even one day in jail for me.

    Good LUCK and Thank You
    Hope this helps some
    Ted Jr

  • TheShortSalePro8th January, 2004

    That just doesn't make sense. The foreclosing mortgagee will permit a reduced commision to the listing broker... but all proceeds are fully accounted for on the HUD1. There won't be any excess proceeds for anyone to split. Any falsification (of that magnitude) on this federal document can result in the real estate broker's loss of license... and loss of freedom.

    I know of a nonprofit organization who will accept a tax deductible contribution from a Purchaser... and in turn make a gift to the displaced Seller for moving expenses.

    [ Edited by TheShortSalePro on Date 01/08/2004 ]

  • DerrickAli8th January, 2004

    Dawn Could you PM me the Name of this NFP both my homeowner clients and I both would greatly appreciate this resource of yours!

    thanks,

    Derrick Ali

  • Donnie_Campbell8th January, 2004

    Can someone forward me the name of the Non-Profit organization? Thanks in advance. My email address is **Please See My Profile**

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