In case of a seller requiring a buyer to pay the seller outside escrow $10K for an old spa, well that is fraud plain and simple. It is covered by your case as it is a payment directly to the sellers.
This all sounds fine and dandy but it does not cover the far more common case. The seller doesnt know what the subordinate lienholders will want until they submit the offer and the subordinate lienholders wont tell them until they get an offer so its a non-starter.
Problem is we dont know what we are facing until we get to the end of the road so there is no way to tell the buyer exactly what it will take for them to get the house any more than disclosing they may need to step up to get it done.
