pulling cash out of a purchase?

[miflin]

What is the name of your state? Alabama
Here's the scenario. A FSBO has a house worth $150.000, but is willing to take 120,000. The seller signs a purchase contract with a buyer for $150,000. The seller is willing to pay the $7,000 closing costs as long as he gets his 120,000. The buyer will put 15,000 (10%) down and get a mortgage for 135,000. Is there a legal way for the buyer to pull the difference between the 150,000 and 127,000 (23,000) cash out at closing? If so, what is the proper procedure and documentation required to execute this?

[seniorjudge]

This scenario is rife with fraud.

[miflin]

That's why I asked the question. I am all about avoiding fraud, prison, and anything like it. Thank you very much for your direct answer.