Posted by paul s on January 28, 2002 at 17:51:52:
I did a little checking. This little trick can do more than get your loan called- you might actually get fined. What’s worse- you might actually go to jail- at least in Illinois. But no matter what, you’ll get a reputation as a shady dealer- someone people can’t quite trust. Ask yourself: What’s your good name worth? Have a little integrity. Do deals right.
Leasing my home on paper - Posted by Becky Nzeocha
Posted by Becky Nzeocha on January 25, 2002 at 20:49:39:
One of the ways my realtor suggested in creative financing it is to put someone as a renter on paper only on my own house and using that income to help buy a second home and say that it would be my primary residence. My purpose would be to get it ready to flip or use them both as equity for buying a third home to flip with no money down. Am I getting this confused or is this something that might actually work?
Re: Leasing my home on paper - Posted by Paul S
Posted by Paul S on January 26, 2002 at 09:31:11:
Your realtor suggested doing this? I’d be careful of this idea if I were you. It may be considered fraudulent. Even if it is legal, it sure isn’t moral or ethical to lie to the bank to get financing.
Why not use another creative formula? There so much on this site like lease options (which I’ve done) and other forms of seller financing. There are partners, there are hard money lenders for rehabs- So many creative, but much more ethical ways to do things.
Re: Leasing my home on paper - Posted by MAX
Posted by MAX on January 27, 2002 at 14:50:05:
Becky,
I do it all the time, works well!
Paul, that is creative financing!!!
Horse Malarky - Posted by Marcos
Posted by Marcos on January 28, 2002 at 15:35:51:
That is horse Malarky.
This is loan fraud, plain and simple. Will you get caught? Probably not. But consider the consequences if you do get caught. I’m not saying it doesn’t get done all the time. And yes I’ve had realtors and loan officers even tell me the same thing. But, I sure wouldn’t want to tell someone to do it.
Be aware of the consequences. There are consequences to everything, even if they very rarely occur. What will happen if you provide a lease, and they ask for cancelled checks, and the deposit slips into your account?
Marcos