Posted by john on July 27, 2005 at 14:23:51:
Thank you all for your comments…The rest of the story is that i would apply as an noo investor…and if i wanted to sell quickly it would be less money. They would like the poprtey held for 6m to a year.
lump sum up front and lump sum well the deal is exited.
cautious investor - Posted by john
Posted by john on July 26, 2005 at 14:57:26:
Has anyone done a deal where you let your credit be used in exchange for lumps sum cash. I spoke to an investor i learned about from the classified ad on this site. He uses persons with good credit to obtain property. in exchange you get a payment at closing. Has anyone done this, how does it sound to you experienced investors.
Re: cautious investor - Posted by Houston in GA
Posted by Houston in GA on July 27, 2005 at 10:12:35:
John, I second Michaela’s comments and add STAY AWAY!!
This is a very tempting way to make a few thousand dollars. It is referred to as being a “straw buyer”. Often what happens is outlined in the below link (about halfway down the article). I’m sure it works well sometimes, but I sure wouldn’t put my credit on the line to chance it. If you do this, you are selling your credit for a few thousand dollars and banking on the fact that the investor will always take care of YOUR mortgage. Plus, if it’s a false appraisal and your property is overmortgaged you have even more problems when the payments aren’t made.
Hope this helps you out, John.
Houston
Be very careful… - Posted by michaela-ATL
Posted by michaela-ATL on July 26, 2005 at 18:45:39:
maybe this one is legit, but this is how a ton of mortgage fraud is being done.
An investor/builder is set up with a fraudulant appraisal. Then they’ll get someone with good credit to qualify for an 80% or 90 % on the fake high value. The ‘buyer’ gets a lumpsum and the seller, appraiser and mortgage agent split into the rest. If the ‘seller’ stops making the payments, then you are stuck with either paying or screwing up your credit and possibly beign part of a mortgage fraud.
Michaela
Re: Be very careful… - Posted by john
Posted by john on July 26, 2005 at 21:02:42:
any ideas how to avoid such a situation if that what it is…i would think getting my own appraisal would help
Re: Be very careful… - Posted by michaela-ATL
Posted by michaela-ATL on July 27, 2005 at 07:16:26:
Sure, that might help, but I bet the sellers wouldn’t like that - which would be a tip off.
I personally would not want to be dependant on someone else making the payments to keep my credit
Michaela