CREDITOR FRAUD on short sale/lease back or USURY - Posted by JDenney

Real Estate Investing Real Estate Law
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Posted by Ed Garcia on January 25, 2001 at 12:22:33:

JDenny,

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.

Ed Garcia

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CREDITOR FRAUD on short sale/lease back or USURY - Posted by JDenney

Posted by JDenney on January 24, 2001 at 23:28:27:

I am purchasing a pre-foreclosure on short sale payoff. I am willing to do a 3 year lease purchase with the original owner. I understand this may be construed as creditor fraud or a usury type loan. Has any one heard of such a decision? How can I protect myself?

Thank You, Jeff