:cool i have one for all to look at and give some input >>> i was offering to buy this property from a guy facing foreclouser if he did not come up with 70k to fix every thing !! Well my offer was this to buy the home for 80k as it had a apprasial 118 k then was in a double close sell it to a friend of the seller for 118k as he had problem credit >>> and i had some one set to buy the note for 100K i was told this was illegal buy the seller :shocked
Did he say which part of it he thought was illegal? Was it the lack of seasoning of the deal (double close), or the note, or what?
:cool I think my buyer was thinking of selling it in some way back to his friend is what i think was his plan ??? do with it as you want after i sell it to you just pay me my money
if the property ends up back in the hands of the original seller, then this series of transctions could be viewed a financing scheme. also, you don’t include much info about where the money is coming from, but its seems that somewhere a private party loan is being origined. Also, the seller paying off his current note or is this a subject 2 deal?
:cool here is how the deal was to go down but did not happen
the first person was about to loose there home in foreclouser the amount to get him out of this was 70k i offered to buy it for 80k and then was going to resell the home and his friend said i will buy it and the apprasial was 118 k i was going to sell the home on anote to his friend ALL ready had the note sold when it was made for 96k the friend was thinking of reselling the home back to his friend >>> but i was not made aware of this tell all most all was done and this is when the seller in forclouser said this is illegal
Why would the seller pay 2 middlemen? If this guy has enough money to do that and pay a lot more than he was selling for why not just pay his original payments?
:cool okay you are making this more confusing then it is
the man in foreclouser was going to sell me his home for 80 k i was then going to sell it to his friend for the full apprasil of 118 as he could not get a bank loan i had the note (( with the friend ))) sold at close for 96k giving me a profit of 16 k
the friend was thinking of selling at alater date a few months the house back to the friend there was never 2 middlemen
man in foreclosure sells to you
you sell to friend
friend sells to man in foreclosure
middleman 1 = you
middleman 2 = friend
I am finding this very hard to read! :banghead
:cool okay i am going break this down again it was nothing more then buying a home from some one facing foreclouser and flipping it to another person !!! THE person who bought the home knows the person whom i bought the home form >>> he was thinking of later on selling it back to the person who lost it
there is not one illegal with flipping the home (( and keep in mind the deal was cancled ))
Perhaps the illegal comment arose because the whole string of transactions could be construed as an attempt to defraud the original foreclosing lender on the house. I’m not saying that is what you are doing, there is not enough detail here. But for example if you were to short sale the lender (thus they take a loss), then sell the property to the friend whom then sells it back to the original defaulting borrower. The lender is out $ and the original owner is back in the house. This could raise some eyebrows.
:cool yes i agree this would be a fraud on the mortage holder in the first place at the start. However i had no idea what the friend had in mind tell i was startting and going through the deal and then i said no way that is just helpping you get your self out of your current mortage and niot have to pay any fees to do it ((( nice friend but not for me))) as i have been around this game to long for this to happen flipping is legal fraud is fraud