Guys if it is in the HUD then the lender will be aware of it. Something happening IN escrow will be on the HUD report. Plenty of monkey business happens outside of escrow, off books so to speak. The lender would not know about it. Marion how your friend did it is something they know. Again, if your friend got his money from private investors or some flunky lender then maybe that is how he worked it out. Again, if he did a backdoor deal then no it is not legal nor is there some loophole. sdhome, again, I don’t know what to tell you other then ask your friend to show you a copy of his closing statement.
sdhome, your original post questioned the validity of the recorded sales price on the tax roll verses what essentially would be the sales price on the HUD report. I question this.
Perhaps something like this happened. I had a client who bought at Winward recently. The price of the condo was like 520k but they had this big promotion of like 70-80k off one weekend. These clients ended up paying 465k. Now the home was advertised for 520k all summer. Yet this one weekend it was 465k. They also got another 20k of upgrades plus another 10k in closing costs incentives. Yet on the tax roll it says 465k. Which is exactly what is on the HUD.
So I seriously doubt that the tax roll represents a price that is not accurate, especially from the builder.
Marion yes absolutely please do get the details. Ask your friend to show you his previous closing statements. If as you claim there is some legal loophole that this can be done then the closing statement WILL show the supposed 50k going back to your friend.
