Hey! They Want Me To Pay The Buyer Under The Table.
At least it seems like under the table:
They want me to put a check in an envolope to give to the buyer after closing. Should I do that? I agreed to pay them $8000 for closing costs and the costs only came to $5500. They say I owe it. Do I?
First the easy answer: No No No to the envelope thing. No to anything like it. No to any compensation that isn’t shown on the HUD 1 closing statement.That is unless you want to commit a crime and feel like row row rowing your boat gently down the stream.
There is no excuse for this. That money could have bought the buyer a lower rate. It could still do that or reduct the purchase price. A pro would have watched their numbers.
Take note of who the lender was and remember never to do business with them. They could have anticipated this and given the buyer a lower rate. If they did this on purpose, even worse.
Determine if the Real Estate agents are in support of your doing this. Kiss them off if they are. Close your transaction and send them all on their way.
You now have two options: Lower the price or give them time to redraw the documents for a lower rate.
I have seen sellers in this postion, position to keep the money by acting up. If you take that option, shame on you and don’t email me again. Larry Cragun
