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I know the answer is no…however if you were going to give the homeowner a small amount of cash to assist with moving,storage, and living expenses….creating the win,win,win scenario you could just offer the homeowner cash outside of closing, but how do you account for that dollar amount on the HUD 1 statement?? I guess you could inflate the purchase price, realitor fees, closing cost, or repairs, but is there another way to create the win,win,win scenario?? Most lenders have guidelines that only allow certain percentages for realitor commisions…..closing cost from the title company I can’t inflate…they are what they are………. additionally there are no major repairs needed to the home. What am I missing here???

2 Thoughts on Can you give a homeowner cash back when doing a short sale??
  1. Reply
    trouperstar
    August 3, 2011 at 12:15 am

    Have you talked to the realator? They should know their way around the fine print. Clue them in to what you want to do- I am sure they will help you figure it out. We just bought a house and paid almost the asking price and got cash back on closing. It is better to do it that way because for resale/comp values it does not lower the bar. Did you buy a new house? Can you work cash back for yourself and then turn around and help your buyer?

  2. Reply
    satarnag
    August 3, 2011 at 1:11 am

    I do short sales in California. Within the HUD-1, the seller cannot recieve one penny unless it is a FHA loan, in which they can get $ 1000.

    What I do is just use my money outside of escrow to do the thing s you stated and write them off as business expenses on my taxes.

    Regards

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