OK here is the scoop. - Posted by New Mafia Target?
Posted by New Mafia Target? on January 15, 1999 at 15:55:50:
OK, I had to call the attorney to get the details correct!
First, the Broward Association of Realtors contract has a faint watermark printed diagonally across it in aqua, that says “This contract is … blah blah” It has a distinguishing aqua banner and logo at the top that designates it as the contract approved by this Board. If this guy is getting his own contracts made up to resemble the aforementioned contract, including banner and logo and watermark and all, with 400 out of 411 lines using the same verbiage, he could be guilty of plagiarizing, and possibly, attempt to defraud.
Here is the thing with the subordination. These are owner financed properties. Lets say its for a 100k house. The buyer gets the seller to carry 70% loan for him (70K). In his contract it states that any owner financing will be subordinated to new financing. The buyer then goes out and gets a new 70LTV loan on the property, for 70K. He comes to closing, pays the seller their 30K cash, pockets 40k cash, and now owns a house worth 100k with financing of 140K. He doesn’t care that the property is overfinanced, he is after the cash. The sellers interest in the property is subordinated to the new loan. The bank who issued the new loan is OK. The party which is not ok, is the seller, who now has neither a property, nor any money coming in.
Only thing is, these are big deals. Move the decimal point over one notch, he is actually buying 1 million dollar properties, putting 700k new financing on them, pocketing the 400k and doing this over and over. It takes the title companies about a month to record the new loans, and by then he’ll probably be in Cayman.
Now do you get it? I do! Whew! I am having my dang attorney look over everything from now on.
You would think sellers of million dollar properties would …