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Hot off the press. (hidden incentives)

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Non Sequitur

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Feb 14, 2002
Professional Status
Certified Residential Appraiser
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Louisiana
In the townhome sale in Parker, public records show that KB sold it to Ruby Gomez on Jan. 5. The HUD-1 settlement statement provided to buyers and sellers shows that KB paid $27,600 as part of the transaction to a firm identified as Falcon. Mr. Goodman said he was told that the payment was made to Falcon Marketing Group. A representative of Falcon couldn't be reached to comment.
Falcon's Web site, no longer operating, this year promoted a program that it said could help people "purchase a property in the next 30-60 days with little or no money out-of-pocket."
A spokeswoman for Los Angeles-based KB confirmed that the company provided an "incentive" to the buyer of the home but added that this was "certainly not standard procedure."
When a reporter visited the home in late July, the occupants turned out to be the family of Jesús Acosta, who identified himself as a construction-site safety inspector. Mr. Acosta said his sister, Ms. Gomez, obtained the mortgage loans and bought the house because she had a better credit record. But Mr. Acosta said he was making the loan payments. Mr. Acosta said that the original asking price of the home was increased and that in return his sister was given cash, but he said he didn't know the details of that arrangement. Ms. Gomez couldn't be located for a comment.
Nice, real nice. More proof that even the big builders willingly participate in scams.
 

Riick

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Aug 14, 2007
Professional Status
Certified Residential Appraiser
State
Delaware
Gentlemen ...
Buyers have gotten used low rates and to Zero Down -- You ain't seen nuttin' yet.

6% toward settllement assistance, and a $5,000 carpet & appliance allowance = how much in givebacks?

Mom & Pop down the block sell their house - giving 8 pts to the Bank to reduce the buyer's interest rate by 3% for 5 years.
Do you think your Local RE Agent is going to to show that as a concession in your local friendly MLS system?
Such might not even show up on the HUD-1 ....depending on how it's handled - EG: When funds are paid.

There is an Old Chinese Curse: "May you live in interesting times"
 
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