I heard a TV real estate guru say that a person could buy property and receive cash back at closing. Anyone know how this is done?
Constance
Comments
This is *FRAUD*
Not that the law ever stopped most real estate gurus, but this one is a particularly blatant violation.
Legally you can’t. However, I have heard of deals where the seller will write a check to the buyer after closing–but the mortgage company, realtors, and title company can’t know anything about it…
Rick Lanicek
Everybody is right, but it is best you go to answers.com and type in unjust enrichment read the answer; after you read the answer you make the decision.
If you have a seller’s concession and a mortgage that is for the full purchase price or a concession and a mortgage that together add up to more than the purchase price you can do it legally.
Usually the property has to appraise higher than the purchase price also.
Not all lenders allow this, but I do closings and do this legally with a lenders knowledge every few weeks.
It’s not as easy to do as the infomercials would lead you to believe. You need a combination of things, starting with a seller that is willing to accept less than his property is worth.
