The Craziest Short Sale Deal I Have Ever Seen!
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?