Re: Are you sure?

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Re: Are you sure?
Posted by Jerry - Ca. on April 29, 2008 at 3:04 PM
In Reply to: Re: Are you sure? posted by Jerry - Ca. on April 27, 2008 at 10:47 AM
Hello Rick:
I discussed this with a friend who is an investment banker ... and he says my original statement was correct! The only possible exception to the BUYER getting cash back would possibly be if the Realtor was returning part of their commission and even that is usually handled outside of escrow, but with a notation that "although not part of this escrow realtor agrees to pay seller ... etc.!"
As YOU are well aware, an escrow closing statement is really a T-Bar Balance sheet and anything due the Buyer would be credited to him ... not returned in cash. The only way a buyer could get cash would be with the permission on the lender's underwiter ... which isn't going to happen! That part's POLICY not law. Other than that ... it's falsifying the HUD-1 ... which is illegal!
Rick ... Do you know of any legal way that the Purchaser ever got money back from escrow as the Purchaser ... Not a Trust Co-Beneficiary, not an outside "agent", and not as an assignor of an option on the property? I'd love to hear about it!
Jerry-Ca.
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: Hello Rick:
: In my post I stated "In the first place it's illegal for a buyer to get money back from the seller in escrow! The only way that could happen ... is if wrong information is completed on the HUD-1 Form (Bank Fraud)." My theory was correct but my I used a "poor choice" of words which as stated is incorrect! What I should have said was; "In the first place it's illegal for a buyer to get "cash proceeds" back from the seller in escrow! As you are aware "cash proceeds" belong to the Seller and the return of any of those funds to the BUYER would have to some sort of illegal Kick-Back!
: Thanks for correcting me!
: Jerry-Ca.
: XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX
: : Jerry, I wasn't aware of this. Are you certain that you're not making an assumption that this would pertain to a short sale or similar transaction? Also, are you certain that this is "illegal" or just against policy?
: : Anyway, if you have any CA or Fed statutes or case law, I'd really appreciate you sharing with us because this is news to me.
: : Many thanks

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Comments: : Hello Rick: : I discussed this with a friend who is an investment banker ... and he says my original statement was correct! The only possible exception to the BUYER getting cash back would possibly be if the Realtor was returning part of their commission and even that is usually handled outside of escrow, but with a notation that "although not part of this escrow realtor agrees to pay seller ... etc.!" : As YOU are well aware, an escrow closing statement is really a T-Bar Balance sheet and anything due the Buyer would be credited to him ... not returned in cash. The only way a buyer could get cash would be with the permission on the lender's underwiter ... which isn't going to happen! That part's POLICY not law. Other than that ... it's falsifying the HUD-1 ... which is illegal! : Rick ... Do you know of any legal way that the Purchaser ever got money back from escrow as the Purchaser ... Not a Trust Co-Beneficiary, not an outside "agent", and not as an assignor of an option on the property? I'd love to hear about it! : Jerry-Ca. : XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX : : Hello Rick: : : In my post I stated "In the first place it's illegal for a buyer to get money back from the seller in escrow! The only way that could happen ... is if wrong information is completed on the HUD-1 Form (Bank Fraud)." My theory was correct but my I used a "poor choice" of words which as stated is incorrect! What I should have said was; "In the first place it's illegal for a buyer to get "cash proceeds" back from the seller in escrow! As you are aware "cash proceeds" belong to the Seller and the return of any of those funds to the BUYER would have to some sort of illegal Kick-Back! : : Thanks for correcting me! : : Jerry-Ca. : : XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX : : : Jerry, I wasn't aware of this. Are you certain that you're not making an assumption that this would pertain to a short sale or similar transaction? Also, are you certain that this is "illegal" or just against policy? : : : Anyway, if you have any CA or Fed statutes or case law, I'd really appreciate you sharing with us because this is news to me. : : : Many thanks

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