creative financing question

Financing, Hard Money Lenders, Private Money
1

I have put an offer in for a property offered at $127,000. My offer on the house was $105,000. They are saying that they have had higher offers but would still keep mine for consideration. Here is my question…As an alternative offer, is it possible to offer list price ($127,000) and put in the contract that the seller would take proceeds from the sell at settlement to cover my 10% down payment ($12,700). Therefore, I do not come out of my own pocket for the transaction and this essentially makes my offer $114,800. Is this possible? Is there a name for this type of transaction??

By the way this is a buy and hold strategy.

2

Not gonna fly with your lender. If the this is in the contract they will either reject the deal or offer to loan only 90% of the actual sale price of $114,800. If the details are not spelled out in the contract and disclosed to the lender its called mortgage fraud.

3

But the actual sales price would be $127,000 and the seller’s money from settlement would be put to make down payment of $12,700. Still not possible??