When you say cash back, you are inferring that the buyer literally got a check at the close of escrow correct? So basically, the buyer did not have to submit any money for closing costs, AND the buyer walked out of escrow with a check. I just want to make sure that this is the case.
I would be surprised if the HUD1 showed that the buyer actually walked out of the transaction with cash. To me, if the lender saw it on the HUD1 then it is the lenders fault for not flagging it and kicking it back. Now if the HUD1 showed the broker getting extra commission, then after the transaction the broker wrote a check to the client then that is not good. I wonder if the broker submitted a 1099.
