U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Real Estate
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 02-28-2018, 10:05 PM
DKM
 
Location: Thousand Oaks, CA
2,077 posts, read 686,775 times
Reputation: 2230

Advertisements

There is definitely no tax reason for either party to do this. So look for another reason if you are curious...
Reply With Quote Quick reply to this message

 
Old 03-01-2018, 12:40 AM
 
1,008 posts, read 290,490 times
Reputation: 1483
Quote:
Originally Posted by southernnaturelover View Post
My attorney isnít quite sure why they want to do it that way either, but she said banks do lots of things for weird reasons. She did bring up a good point, if I were to sell the house in a few years it would look like I paid more for it, hence less taxes on my profit. I left the contract for her to look over, she was busy with other things while I was there.

There is no buyerís premium, and Selene will have to pay a 5% auction fee ($1900).
I think that's key to the risk.
Reply With Quote Quick reply to this message
 
Old 03-01-2018, 01:25 PM
 
6,365 posts, read 7,369,788 times
Reputation: 10833
Quote:
Originally Posted by southernnaturelover View Post
My attorney isnít quite sure why they want to do it that way either, but she said banks do lots of things for weird reasons. She did bring up a good point, if I were to sell the house in a few years it would look like I paid more for it, hence less taxes on my profit. I left the contract for her to look over, she was busy with other things while I was there.
I trust that your attorney isn't a tax lawyer.
Reply With Quote Quick reply to this message
 
Old 03-01-2018, 05:24 PM
 
Location: Boise, ID
8,013 posts, read 22,600,365 times
Reputation: 9235
I'm always very wary of any transaction that involves "you pay me extra and I'll refund you". I don't know that I've ever seen a situation like that that was NOT a scam. I've worked in a real estate office for 17 years and we've bought and represented buyers on quite a few bank owned, and I've never heard of anything like this.

Tread very lightly.

You will definitely want an independent 3rd party to ensure that the seller's $8000 funds are good -- held back from your funds, for example -- and not a separate check from them, unless you have that check verified with the issuing bank that it is legitimate and certified funds first.
Reply With Quote Quick reply to this message
 
Old 03-01-2018, 06:05 PM
 
1,008 posts, read 290,490 times
Reputation: 1483
I'm imagining scenarios. Like if there's a setup so that the extra will be considered excess proceeds and that would have to be returned to the previous owner. Reading too many detective books. Looking forward to hearing the result.
Reply With Quote Quick reply to this message
 
Old 03-01-2018, 08:34 PM
 
Location: Floribama
13,583 posts, read 29,563,482 times
Reputation: 11988
I got an email today saying that the closing should be within the next 15 days. All of the documents have been sent to my attorney’s office.

I did speak to a relative who has owned a real estate company for many years, and she didn’t seem surprised at all. She said banks fudge numbers all the time so that they can get reimbursed by HUD.
Reply With Quote Quick reply to this message
 
Old 03-01-2018, 09:53 PM
 
Location: Raleigh NC
7,831 posts, read 6,182,232 times
Reputation: 6947
still sounds like fraud.

by the way, where do you think HUD gets that $8K?
Reply With Quote Quick reply to this message
 
Old 03-02-2018, 04:33 PM
 
Location: Ohio
18,115 posts, read 13,298,762 times
Reputation: 13964
Quote:
Originally Posted by southernnaturelover View Post
I got an email today saying that the closing should be within the next 15 days. All of the documents have been sent to my attorneyís office.

I did speak to a relative who has owned a real estate company for many years, and she didnít seem surprised at all. She said banks fudge numbers all the time so that they can get reimbursed by HUD.
That's immoral unethical and illegal, and specifically, it is fraud.

You should consider the legal ramifications, should the bank be audited by regulators.

Remember that the statute of limitations on fraud starts with the discovery of the fraud, so you could potentially get burned 10, 20 or 30 years from now.
Reply With Quote Quick reply to this message
 
Old 03-03-2018, 09:29 PM
 
5,691 posts, read 7,297,743 times
Reputation: 3207
But isnít it really the bank committing the fraud, not OP?
Reply With Quote Quick reply to this message
 
Old 03-03-2018, 11:39 PM
 
1,008 posts, read 290,490 times
Reputation: 1483
Quote:
Originally Posted by GoPhils View Post
But isnít it really the bank committing the fraud, not OP?
I think the problem is the buyer also signs the papers. And right around where it says she's not being reimbursed.
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Real Estate
Follow City-Data.com founder on our Forum or

All times are GMT -6.

© 2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top