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After the purchase and sale has been signed and terms agreed to by all parties and reviewed by counsel etc, the buyer's agent asks the seller if it is ok to raise the selling price by $3k so that the buyer can get closing costs from the bank promising it would no affect the proceeds to the seller. The seller agrees orally but not in writing -- as long as the proceeds received would not change--- only to find out after the closing and reviewing the HUD statement (and finding his bank account $3k short after proceeds of the sale have been transferred) that the sales price was not raised and the $3k was taken out of the sellers proceeds.
Can you IMAGINE? Does the seller have any recourse? I suppose not after the banksters and the stealtors together have plotted to rip-off the seller and make the deal go through for the buyer.
After the purchase and sale has been signed and terms agreed to by all parties and reviewed by counsel etc, the buyer's agent asks the seller if it is ok to raise the selling price by $3k so that the buyer can get closing costs from the bank promising it would no affect the proceeds to the seller. The seller agrees orally but not in writing -- as long as the proceeds received would not change--- only to find out after the closing and reviewing the HUD statement (and finding his bank account $3k short after proceeds of the sale have been transferred) that the sales price was not raised and the $3k was taken out of the sellers proceeds.
Can you IMAGINE? Does the seller have any recourse? I suppose not after the banksters and the stealtors together have plotted to rip-off the seller and make the deal go through for the buyer.
There are some facts missing here.
If the seller didn't agree in writing, then how did the contract get changed enough to allow the buyers closing costs to get taken out of the sellers proceeds? And if the seller did sign the part allowing the costs to be paid, didn't that seller look at the price on the contract he was then signing?
And if it turns out that the seller was in fact ripped off, yes there is a remedy. The seller should talk to the attorney that represented him in this trasaction, to find out what the proper line of action is in their locale.
SC is an attorney state so I would talk with the attorney and find out what happened. It doesn't matter that it is verbal. They can only do what is in writing.
In Florida that can't happen. Not in writing, no agreement, no change is allowed. Everything would have to be in writing. And... how did the seller not know it was happening to begin with? They have to see and sign/approve the HUD1 which would show them the figures and proceeds. The senario makes no sense.
Agreed, this scenario makes no sense. The closing HUD would have showed the 3K. It should have been caught by their closing agent, their Realtor, or the seller themselves. I don't see any reason to blame this on "Stealtors" or "Bansters". The bank would have had nothing to do with this, and while the Realtor should have noticed the missing 3K, it was a mistake by the closing agent, if the seller did not agree to this in writing there is no way the closing agent had the right to deduct 3K to go to buyer's closing costs OR raise the price 3K.
This is actually a common practice, except it is done in writing so there are no misunderstandings.
That is what an "Amendment" is called. To change any terms to the original contracts. It must be in writing and signed by both parties. The title company or closing attorneys have to follow only what is written.
There's a whole lot missing from this story. That's fraud, but a title company or bank wouldn't have touched that scenario without a written amendment. I'm thinking this is either totally made up, or someone is leaving out 95% of the rest of the story
Fraud or not, the OP reviewed the HUD statement "AFTER" closing which meant he signed it.
You should review and understand any legal paperwork BEFORE you sign, not after.
Was the OP forced to close without reading and understanding and agreeing to everything in writing ?
I don't know about in South Carolina, but here in Texas, at every closing, the escrow officer goes over the HUD1 line by line with the seller and with the buyer. This is after (usually) it is sent to the agents to review and go over with their clients ahead of time. (The "usually" is because sometimes the escrow officer, due to lender delay, doesn't have the HUD1 until just before closing.)
I just had a buyer who sold their home in SC and both parties sit across from each other at closing and go over the documents.
I am guessing the seller signed documents without reading/ understanding what he/she was signing.
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