First off let me ask for ketchup with my crow sandwich!!! I am sorry I doubted you. Second off here is how it worked.
The friends of yours did indeed pay cash for this home then they indeed get the 70k rebate. The agent said yes it was peculiar AND that NO THIS COULD NOT HAVE HAPPENED IF THERE WAS A LENDER INVOLVED. However because it was cash the builder did agree to do this. The 70k was listed on the HUD so essentially your clients did get this home for 855k rather then the 925k that is on the tax roll!!!
Any appraisers out in this area may want to note that.
Again everyone should note that this was in cash. What will be interesting now is that I believe your friends are now going to finance the home, to get cash back out. I bet that whoever they finance with will never know of the cash back.
That is walking a fine line man. Anyways you were correct and I am glad I checked the story out to clear things up.
