Listing agent is asking me $500 check to submit the short offer to bank? why is that and is it refundable?

[keeshonder]

I thought I was following until writing the check out to the seller. It does not sound to me as this is an earnest money deposit but looks more like a non-refundable option offer.

[appl3]

Is it legal for the listing agent to ask for money to seal the short sale deal? The seller wants money from this transaction...and the only way they can get it is if I pay the listing agent brokerage fees....

[LOL_Whut]

Originally Posted by appl3

Is it legal for the listing agent to ask for money to seal the short sale deal? The seller wants money from this transaction...and the only way they can get it is if I pay the listing agent brokerage fees....

How can a seller get money out of a short sale? By definition, they have no equity.

[sj08054]

Originally Posted by LOL_Whut

How can a seller get money out of a short sale? By definition, they have no equity.

Three are legal and illegal ways of seller getting money for short sale. In most case, they don't but there may be instances of incentives.

In a short sale I purchased, the seller got $3000 but most of it went to all of the debt (water, gas, electric, violations) and he was supposed to get about $600 at closing based on HUD1.