hello, first time posting and first time home buyer here and have a problem on my hands or so it would appear. My agent and i found THE house that i want. It was short sale for $89000... We offered $85000 and 3 days later recieved a response from sellers realtor saying offer was accepter. We than get the contract from them and they changed the price to $75,000, seller pays closing costs... we thought that was great, but then there is another contract labeled as "addendum" and on it states that at the time of closing the buyer will pay an additional $9500 to a third party company that is supposively part of the short sale deal. I am fine with this because i am getting the house for $80k after offering and willing to pay $85.



my agent is very very nervous because he has never seen this before and has not yet submitted the signed contract. his thinking is that the seller agent somehow found out what the bank would accept, than took our offer and lowered it to $75k, paid closing costs, but tacked on $9500, knowing that it still ends up being less than what i was originally willing to pay.



The other factor is that the seller, whom i know, gave power to attorney and has no clue that there is even a contract on the house because someone else signed it for him.



does this sound legit or should i stay away from it?!? my fear is that if it is legit, the sellers agent will cancel the contract because we are taking too long to sign and return it. It has been 4 days since i recieved the contract from them. I dont want to lose the house because i want it so badly but i dont want to be involved in anything illegal either. please give your advice, thank you so much!!!

Is the $9500 to pay off a 2nd lien holder? Does the seller have 2 loans?

I couldn't say without the specifics of the deal. It sounds like the seller gave POA rights so now an investor is running the show.Usually the investor will just get a quit claim deed from the seller so now if the disappears the investor owns title and can now sign all the documents.

You could also have a third party short sale company involved trying to get a fee. As long as the bank knows and everything is fully disclosed on the HUD usually it is ok. It is when full disclosure is not made to all parties that fraud comes into play.

I personally wouldn't give anyone 9,500. Have an attorney review and drill down on this before proceeding. Your agent is right to be cautious. Too many other easier deals out there. No legal advice

thank you superrealtor for your help.... So should i get a copy of the HUD first and then go from there?? does the sellers realtor legally have to give me a copy of that? i appreciate your help

I am not there so cannot give advise as to the specifics of your transaction.

If I was looking at spending 9,500 and putting at risk I sure would spend 100 bucks for an attorney to review my situation. I just think there is better and more low hanging fruit than this.

no legal advice

now seller realtor is asking for $10k deposit by tomorrow??? isnt that a little high???? advice to just walk away???? problem is i really want the house, but not sure if all of this is normal/worth it

Wouldn't do it.Walk away. No legal advise.

My advice is to talk with the title/escrow company if you are using one and have them provide you with a copy of the estimated HUD with all figures on it so you can review it. You should also ask the title/escrow company about your situation and if they have seen it before.