Padding the sales price to get seller to pay for repairs?

[Eddie Gonnella]

Hey everyone, I found this concept and want to know if it is a legit option: 

1. Has anyone done this before? 
2. Is this legal/possible? 
3. Will the bank allow this/do they even have to know?

Not concerned as much with whether this is a good idea/the risks involved because the situation I'm looking at is very unique. Buying a house from a family member (ARV $120,000, current mortgage $74,000... they just want to get out from under it) and trying to find a way to put as little cash into this as possible.

Pad the sale price to account for the repair costs