The perfect 0$ Down technique??? - Posted by TheTrain
Posted by TheTrain on January 27, 2002 at 24:29:38:
Just like to know if you heard about a no money down technique that seems too good to be true but was signed by an attorney a few months ago saying that all of this was perfectly legal. It goes something like this…
The buyer made an offer on a duplex for 155,000$ and got a new mortgage for 130K and had to come up with 25K as a down payment.
But at the closing table his attorney add an addendum clause on the contract stating that some major rehab work had ben forgotten and the seller should substract an amount of 25,000$ to the property bringing it now at 130,000$ which is the price of the new mortgage he was getting by the bank to buy it.
Since the mortgage is 130,000$ and that the 155,000$ price offer has been dropped to 130,000$ (thanks to this 25k addendum) the buyer seems to buy the house no money down.
If this “addendum thing” really exists, then how come anybody did that sort of deal and how come the bank didn’t lower the mortgage from 130K to 105K since that addendum lower the home value from 155K to 130K.
Help me here, i really don’t get this one…