Posted by John Behle on March 21, 2002 at 20:15:00:
What your friend proposed is called “Double Contracting” and is absolutely illegal. It is common though and the fact that many do it, doesn’t make it any less illegal or dangerous. Any form of deception on the lender is fraud and can carry a heavy penalty.
increase contract purchase price - Posted by marc
Posted by marc on March 21, 2002 at 19:39:49:
A friend told me that i could increase the contract price to 20% above actual selling price and this would give the deal a 15% down payment and 5% closing cost.All of it financed through a mortgage lender for a no money down deal. Is this possible and legal.I am a newbie and appriciate any and all thoughts on this deal. THANKS