In the last several months, I have been approached by two different home buyers to write a Residential Purchase Contract with a selling price of $100,000 over the asking price.  Sounds good to the home seller,  right?  Well both of these home buyers, one with a real estate agent and one without, wanted the $100,000 back "under the table", typically in the form of a cashiers check at time of closing. 

Both buyers were proposing that they purchase the home with 0 down and then upon closing receive the $100,000 back... so in essence they would buy the home and get $100,000 in "their pocket". The seller would sell the home for $100,000 over asking price BUT return the $100,000 to the buyer (seller is in essence selling for full price) I would assume that if the market appreciated, the buyer is a "sweet" position and if the real estate market didn't go up, they had the $100,000 and no down payment to loose.

The bank could foreclose and of course that would damage the buyer's credit but they would still have the $100,000. 

Obviously, a Realtor can not participate in lender fraud.  They can loose their real estate license and face prosecution.  Neither of the homes have yet sold; apparently "these people" select homes that have been on the market awhile and have difficulty selling.   I wonder how many of these transactions closed are now going into foreclosure....