Seller Agrees to tear up Note at the table - Posted by Leobrian
Posted by Leobrian on September 28, 2003 at 10:00:49:
I am a new investor and I have a deal that is closing soon with 73 cents on the dollar due to the seller at close. To do the deal -no money down - I had the seller sign a offer letter accepting my price. We then submitted a contract to the bank for the full retail price of the house - the Idea being that the 80% loan that is expected would cover all closing expenses. To complete the deal the bank wants to see the remaining (27%) down payment at closing. The seller and I have already agreed to do a note to cover this. My question is … how can I be sure that the seller will tear up the note “at the table” and more importantly how do I make sure the seller returns the proper amounts to me at the table?
Believe it or not, a lot people have gone to jail for doing this type of stuff. If you can’t do it right and legal, don’t do it. However, if you’re not afriad of going to jail and putting an end to your brief investing career, go ahead and do. You’re on your own, don’t ask any of us for advice please.
Re: Seller Agrees to tear up Note at the table - Posted by Leobrian
Posted by Leobrian on September 29, 2003 at 07:11:53:
Thank you all so much. The reason I posted this question was because this did seem a bit strange. But for some reason I recall seeing / hearing this tactic in creative realestate financing. Other than starting over, is there a way to right this deal? I’m due to close this week.
Re: Want us to conspire to defraud? - Posted by Jerry Martin NC
Posted by Jerry Martin NC on September 28, 2003 at 19:45:48:
Take another look at your deal and try another lender. You and the seller will go to jail if you do it this way and get caught. Do it right or don’t do it…