short sales - Posted by mike

import · December 17, 2006, 7:30pm

Posted by max-Va on December 27, 2006 at 22:26:46:

I am always looking to buy like new appliances for my rentals.
There is nothing illegal about buying furniture or appliances from a seller after a short sale.It has to be reasonable value. True, no $5K refrigerators that sell new in store for $400. If the bank foreclosed the seller would tear up the property and take all the appliances anyway. Getting a few dollars into the sellers hands to assist in the move is not a bad thing.
The investigator (if there is one, which I have never seen any) will clearly see they do not get any cash from the sale of the property, no deals outside the HUD-1. The sellers can however sell any and all personal property to whom ever they care to.

import · December 17, 2006, 7:30pm

Posted by mike on December 17, 2006 at 20:30:00:

Is it illegal to tell a bank you are working with on a short sale to tell them the seller is not going to get any money and then give the seller a couple of thousand dollars on the side for walking away from the property?

import · December 18, 2006, 5:57am

Re: short sales - Posted by max-Va

Posted by max-Va on December 18, 2006 at 06:57:58:

To clarify my answer, personal property sales do not go on the HUD

import · December 17, 2006, 9:10pm

Re: short sales - Posted by max-Va

Posted by max-Va on December 17, 2006 at 22:10:00:

All monies that exchange hands in a real estate transaction must be shown on the HUD-1.

However, if you buy personal property such as furniture or appliances with a bill of sale, this is not a real estate transaction

import · December 25, 2006, 11:16am

Re: short sales - Posted by Rob

Posted by Rob on December 25, 2006 at 12:16:26:

While you may think this is a cute and clever way of giving cash to the Seller, the FBI and or HUD investigator will likely not agree. You would have not purchased the items absent the real estate transaction. What are the incredible odds… You happen to be buying personal property from someone you are buying a house from, who is not supposed to be getting any cash…? I don’t think any investigator will believe your story, and it is the investigator you will have to convince…not us.