Is this legal? - Posted by Brian


#1

Posted by Joe Kaiser on February 23, 1999 at 10:08:53:

Nope.

See the “flipping scam” post above for the result of this sort of “inflated” saleprice deal.

Joe


#2

Is this legal? - Posted by Brian

Posted by Brian on February 23, 1999 at 06:45:31:

The house I plan to buy is for sale from another investor. She mentioned something about raising the selling price to cover 15% down and a 3-6% sellers conccestion. sale price is flexible apon the appraisal. Basically she will take whatever the bank gives me at a 80-85% LTV. Does this really work?

Thanks

Brian


#3

Re: Is this legal? - Posted by Irwin

Posted by Irwin on February 24, 1999 at 06:39:12:

This might be legal or illegal based on how you handle the 15% down payment. You can do seller carryback, or 2nd mortgage financing, or loan the down payment. However, if the terms of the loan prohibit this, and you lie to the lender about the d/p being paid just to get the higher sale price, or if seller conveniently waives the d/p there might be a problem.