Posted by Ed Garcia on January 25, 2001 at 12:22:33:
You state that, “I am purchasing a pre-foreclosure on short sale payoff”. Apparently you are putting new financing into place, paying off the lender. If so, no lender fraud is done. A short sale, is a sale that is consummated below the loan amount, that’s all.
My concern is what’s going on between you and the owner of the property. I would like to suggest for you to go over to Bill Bronchicks web site http://legalwiz.com/, from there go to his Article section where you will find 2 articles from Bill titled, "Can Foreclosure Investing be “Criminal”? and Structuring Sale-Leaseback Transactions.
My advice would be for you to get in touch with a local Real-estate attorney to handle this deal.