BiggerPockets

Good News !! I was able to get my extension on the short sale.Now I just have to get my buyer to pay my fee.Any recommedations or experiences from you guys for collecting your profit outside of closing. We were doing a back to back but He's using Quicken loans and they require 3 month seasoning.Didnt have time to put in a trust.Thanks for all your help.

Not just "considered loan fraud"....it is loan fraud.

Keeping any transfer of monies or consideration on a real estate transfer codified by a HUD1 Closing Statement "secret" IS by definition fraud....so if you "pay it" or "received it" it must be noted on the HUD1.

Rob,

If the original contract was assignable, the new buyer could simply purchase the contract from Mark. I don't think that would be considered fraud, do you?

Dave

Mark you are correct! This is what i use for FHA end buyers or when seasoning is an issue.

However, this is not without problems. Lender (quicken) might call into question the assignment and/or the sudden lien showing up on the prelim.

Good Luck

You need the end buyer to sign a promissory note that will be secured by a junior lien after closing. This document should be drawn up by an attorney and will be a fee for your services rendered.

The one thing that you cannot due is file the lien prior to closing. It will be caught and it will not close.

In order for this to work, you must have a contract for consideration drawn up by your attorney. You should have some confidence in the end-buyer. The monies paid to you should not be straight from their checking account or savings account because it could show up. Lastly, if escrow is required by the end-buyer, use a different escrow company for each. You only need to have the right to file a lien and not actually file it unless the buyer fails to perform. Filing the lien is expensive and having the right to file is usually enough security.

Hey David,
This short sale has been torture. I'm trying to avoid it becoming a net listing.I notice you have a brokers license. I keep a license as well ,so i can market my properties.
Problem, is that I no longer have equitable interest. We had seasoning issues.Atty sugested buyer to pay me outside of closing. Locally, I see brokers asking for buyers premiums, short sale fees that cannot be financed and have to be paid seperately.I've seen release of equitable interest fee. Would love to see what others have used. Scott, Do you have any samples of your contracts that i could get an idea to use. Thanks guys for everything.

Thanks David. I already am collecting a RE fee from the lender. Now I need to collect my fee from the buyer. I was doing a double closing with him until we ran into seasoning issues.Most likely, I will be charging him a short sale fee to collect my profit. I would love to know what others have used.Otherwise , it might be net listing.

Thanks Phil !! Looks like you missed a lot of the background detail. Bank has already approved the new buyer. They had no problems with the buyers conventional funding long as it closes by the date set.
The bank is paying the Realtor fee. The reason a short sale fee will be charged to the buyer is to collect my profit on the deal.It will be not inluded on the HUD. It could be called anything. Release of equitable interest,Contract for consideration, etc. I was looking for suggestions on How to do the reverse assignment.