The Craziest Short Sale Deal I Have Ever Seen!

[Jimmy C.]

Ok, so we bought a deal from another investor. He gave us a great price, and we closed on it with our cash. My partner went to closing, and he had mentioned that it was a short sale being flipped to us. I didnt really pay attention, because I am too busy selling or wholesaling.

*side note* The "flipper" of this short sale got the contract changed into our name as the buyer before closing.

So we have a closing to sell the property tomorrow, and I was running the numbers to figure out net profit. I was looking at the HUD from our purchase. And here is the crazy part:

The seller recieved over $3,000 at closing for the short sale.

The 1st Mortgage payoff was $1.00!!!!!

So this really breaks the mold for what I thought were the rules in short sales. How can the seller recieve cash at closing in a short sale? And why did the 1st mortgage take a payoff of a dollar?

[Paul K.]

I have never seen that one ... and the bulk of my business is Shortsales. $3,000 is probably because the seller qualified for HAFA and is allowed. I hope you got a good deal! :D