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Old 03-04-2018, 02:58 AM
 
6,359 posts, read 7,324,210 times
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Quote:
Originally Posted by southernnaturelover View Post
I bid on a foreclosed house through an auction, and seller accepted my “bid” (really an offer). My bid was $30k, and when it came time to sign the documents today it showed that my bid was $38k. When I questioned this they said that the seller needs to show a loss of $38K on a HUD settlement statement, and that I would recieve a credit of $8k at closing.

I’m a bit confused and I’m trying to understand exactly why the seller needs to do this?
You should ask for a written explanation as to why the sales price was increased. A selling price of $38K does to equal a loss of $38K (unless the amounts are a coincidence). Once you get that written explanation, you should send a copy to your local Congressman and ask that they forward it to the proper federal regulatory authorities. (It will receive more attention that way.) They may be interested in hearing how banks are dealing with the disposition of foreclosed properties, especially if federal reimbursement is involved. Senator Elizabeth Warren may also have an interest in their "explanation".
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Old 03-04-2018, 04:53 AM
 
5,668 posts, read 7,260,887 times
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Iím not an expert of course but if anything, if they wanted to show a bigger ďlossĒ, wouldnít they fudge the numbers so that the sale price is lower, not higher?

Maybe there is some sort of minimum sales price for whatever loophole they are trying to shadily take advantage of.
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Old 03-04-2018, 05:14 AM
 
Location: Cary, NC
31,592 posts, read 55,307,520 times
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My Spidey Sense is a-tingle with "Mortgage Insurance Fraud" tingles.

I think the OP should investigate whether they are being asked to participate in enabling MI Fraud.
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Old 03-04-2018, 05:55 AM
 
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Quote:
Originally Posted by jackmichigan View Post
A selling price of $38K does NOT equal a loss of $38K
I noticed a typo in my post after it was too late to edit. Corrected above.
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Old 03-12-2018, 05:14 PM
 
Location: Floribama
13,486 posts, read 29,434,352 times
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Just an update...

I closed on the house today. I did not have to pay the extra $8k, it was done as a credit and deducted from the total due.
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Old 03-12-2018, 06:05 PM
 
6,359 posts, read 7,324,210 times
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Quote:
Originally Posted by southernnaturelover View Post
Just an update...

I closed on the house today. I did not have to pay the extra $8k, it was done as a credit and deducted from the total due.
Did you ever get a reasonable explanation as to why they adjusted the sales price? It still sounds very odd, to say the least.
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Old 03-12-2018, 06:41 PM
 
Location: Floribama
13,486 posts, read 29,434,352 times
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Quote:
Originally Posted by jackmichigan View Post
Did you ever get a reasonable explanation as to why they adjusted the sales price? It still sounds very odd, to say the least.
Nope, and my attorney didnít know either. The house is mine now though (with one year right of redemption to previous owner), so if thereís any wrong doing on the bankís part thatís on them.

There were no keys, so I had to pick the lock, but once I got inside the house I discovered thereís a brand new unused stove and fridge. I thought that was odd considering itís a foreclosure. I did find a little bit of water damage, but when I looked in the attic I discovered some of the insulation was missing from the copper a/c line, so Iím assuming it was condensating and dripping down onto the ceiling.
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