Hi Guys,
I have a property that is listed for $360,000 and the buyer wants to pay $380,000 and have the additional,
"$20,000 placed into a non-revocable demand for payment to CBUSA company that may be secured by deed of trust, only to be paid and satisfied through escrow. Demand will be paid on amendment form approved by seller and will be non-revocable."

What is my legal exposure?
This is assuming that the property will appraise for at least $380,000 so I do not see this as bank fraud. Is this a correct assumption?
Thank you,

Hello Amir,
I have come across these programs. The seller "lends" their equity to a "payoff entity", who takes a percentage for facilitating the transaction. At closing , the gifted down payment is shown as a payoff by the seller to the facilitating entity.

The jury is out on this, I've heard of no determination that it IS RESPA compliant. Those I know have taken the position that, as long as everything is disclosed to all parties, especially the lender doing the purchase money mortgage, then it is OK to do the transaction.
See you again