Posted by Mike K. on July 19, 2002 at 15:02:19:
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Am I unethical for doing this? - Posted by rey from TX
Posted by rey from TX on July 19, 2002 at 12:32:21:
There’s a seller who won’t sign a lease option agreement unless I give him $3000 for first and last months rent. So what I did was I went and got a preapproval letter from an investment company for a $3000 line of credit, which they will loan me once they see a signed lease option agreement. The only problem is they plan to attach a lien on the house for the $3000. Has anyone ever done something like this or can I plan on having this blow up in my face?
Re: Am I unethical for doing this? - Posted by Carl
Posted by Carl on July 19, 2002 at 13:17:43:
Dude,
You can’t get a loan against a property you don’t own.
Re: Am I unethical for doing this? - Posted by Michael(NH)
Posted by Michael(NH) on July 19, 2002 at 18:39:59:
Actually…you can get a mortgage against property you don’t own. I have done it twice. You do have to have the consent of the owners of the property and even if they are not named on the loan/note; it is their collateral that is at risk.
If you take this route, they will be at the closing for this transaction, because they will need to sign some of the documents and will have complete knowledge of the entire transaction.
Re: Am I unethical for doing this? - Posted by JoeKaiser
Posted by JoeKaiser on July 19, 2002 at 13:23:27:
Dude, you’d be surprised what lenders will do when they don’t do their homework.
Joe
Re: Am I unethical for doing this? - Posted by rey
Posted by rey on July 19, 2002 at 13:23:13:
That’s a given, but the situation is different and the investment company knows exactly what I’m doing. How long have you been actively involoved in real estate?