Carmel Valley Pardee DH,Saratoga,CarriageRun Holding Value

[SD Realtor]

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.

It should be very easy to see.

SD Realtor

[SD Realtor]

sdhome I understand. I looked up the deal. It was a cash deal for 925k. Then your friend went and opened up a home equity line for 180k right after the purchase of the home.

Doesn’t that seem peculiar?

Anyways I will tell you what, I will dig a little deeper and see the details.

Understand that this is a cash deal… NO LENDER was involved.

*************

So if it is a cash deal why would someone pay more in cash just to get that same cash back?

*************
SD Realtor

[SD Realtor]

sdhome I understand. I looked up the deal. It was a cash deal for 925k. Then your friend went and opened up a home equity line for 180k right after the purchase of the home.

Doesn’t that seem peculiar?

Anyways I will tell you what, I will dig a little deeper and see the details.

Understand that this is a cash deal… NO LENDER was involved.

*************

So if it is a cash deal why would someone pay more in cash just to get that same cash back?

*************
SD Realtor

[SD Realtor]

sdhome I understand. I looked up the deal. It was a cash deal for 925k. Then your friend went and opened up a home equity line for 180k right after the purchase of the home.

Doesn’t that seem peculiar?

Anyways I will tell you what, I will dig a little deeper and see the details.

Understand that this is a cash deal… NO LENDER was involved.

*************

So if it is a cash deal why would someone pay more in cash just to get that same cash back?

*************
SD Realtor

[SD Realtor]

sdhome I understand. I looked up the deal. It was a cash deal for 925k. Then your friend went and opened up a home equity line for 180k right after the purchase of the home.

Doesn’t that seem peculiar?

Anyways I will tell you what, I will dig a little deeper and see the details.

Understand that this is a cash deal… NO LENDER was involved.

*************

So if it is a cash deal why would someone pay more in cash just to get that same cash back?

*************
SD Realtor

[SD Realtor]

sdhome I understand. I looked up the deal. It was a cash deal for 925k. Then your friend went and opened up a home equity line for 180k right after the purchase of the home.

Doesn’t that seem peculiar?

Anyways I will tell you what, I will dig a little deeper and see the details.

Understand that this is a cash deal… NO LENDER was involved.

*************

So if it is a cash deal why would someone pay more in cash just to get that same cash back?

*************
SD Realtor

[SD Realtor]

Sdhome YOU ARE CORRECT!!!

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.

SD Realtor

[SD Realtor]

Sdhome YOU ARE CORRECT!!!

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.

SD Realtor

[SD Realtor]

Sdhome YOU ARE CORRECT!!!

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.

SD Realtor

[SD Realtor]

Sdhome YOU ARE CORRECT!!!

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.

SD Realtor

[SD Realtor]

Sdhome YOU ARE CORRECT!!!

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.

SD Realtor

[Coronita]

Interesting. I wonder if there are any legal issues about this. Not in the initial purchase, but any subsequent refinancing…..

 

I mean let's suppose this hypothetical situation.

Let's say I work out a scheme with a seller to a home for $1.5million in cash. Behind the seen i get $500k cash back. Then I subsequently refinance the home. Would it take the initial purchase price of $1.5 million into consideration in the any subsequent appraisal? I mean, perhaps a $500k spread is too large to pull this off, but suppose it's say $200-300k on a home >$1million. Afterall, occasionally, we see a seller with an asking price with a $200k spread, sometimes $300k.

 

I would also suspect that "friend" after refinancing will then have his/her home reassessed at the lower value after refinancing to reduce the tax burden.

 

 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

Interesting. I wonder if there are any legal issues about this. Not in the initial purchase, but any subsequent refinancing…..

 

I mean let's suppose this hypothetical situation.

Let's say I work out a scheme with a seller to a home for $1.5million in cash. Behind the seen i get $500k cash back. Then I subsequently refinance the home. Would it take the initial purchase price of $1.5 million into consideration in the any subsequent appraisal? I mean, perhaps a $500k spread is too large to pull this off, but suppose it's say $200-300k on a home >$1million. Afterall, occasionally, we see a seller with an asking price with a $200k spread, sometimes $300k.

 

I would also suspect that "friend" after refinancing will then have his/her home reassessed at the lower value after refinancing to reduce the tax burden.

 

 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

Interesting. I wonder if there are any legal issues about this. Not in the initial purchase, but any subsequent refinancing…..

 

I mean let's suppose this hypothetical situation.

Let's say I work out a scheme with a seller to a home for $1.5million in cash. Behind the seen i get $500k cash back. Then I subsequently refinance the home. Would it take the initial purchase price of $1.5 million into consideration in the any subsequent appraisal? I mean, perhaps a $500k spread is too large to pull this off, but suppose it's say $200-300k on a home >$1million. Afterall, occasionally, we see a seller with an asking price with a $200k spread, sometimes $300k.

 

I would also suspect that "friend" after refinancing will then have his/her home reassessed at the lower value after refinancing to reduce the tax burden.

 

 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Coronita]

Interesting. I wonder if there are any legal issues about this. Not in the initial purchase, but any subsequent refinancing…..

 

I mean let's suppose this hypothetical situation.

Let's say I work out a scheme with a seller to a home for $1.5million in cash. Behind the seen i get $500k cash back. Then I subsequently refinance the home. Would it take the initial purchase price of $1.5 million into consideration in the any subsequent appraisal? I mean, perhaps a $500k spread is too large to pull this off, but suppose it's say $200-300k on a home >$1million. Afterall, occasionally, we see a seller with an asking price with a $200k spread, sometimes $300k.

 

I would also suspect that "friend" after refinancing will then have his/her home reassessed at the lower value after refinancing to reduce the tax burden.

 

 

 

[img_assist|nid=5962|title=selfportrait|desc=|link=node|align=left|width=100|height=80]

—– Sour grapes for everyone!

[Author]

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