Sounds to me like the are trying to get their loan based on the After Repaired Value, not the current value. If they were to get 70% of 250k they would have a working capital of 175k, which would give them 35k cash to fix the house after paying you.
There are lenders that loan on the ARV, but I don’t see why they would ask you for the credit/conscession.
I would call Brookview Financial, if I were you. They are National Rehab Lenders and do lend based on ARV. They should be able to tell you if it’s fraud.
I spoke to an associate and he siad it sounds like they are trying to get a construction loan. Be careful that it doesn’t fall apart at closing due to a difference in bank appraisals.
I’m reading this and I have to laugh, this seems like something right out of an episode of the Soprano’s. Let’s say the mortgage broker, appraiser, buyer and attorney are all working together to put some $$$ in their pocket…who’s going to know and for that matter who’s going to check. Other than an astute seller who has an inkling of what is going on the lender will never know. Right? So here comes this LLC riding in to town, if there good before you know it they’ve put hundreds of thousands of dollars in their pockets…and tax free I may add. Then when the new owner, thus the LLC, doesn’t pay the lender foreclosure proceedings start. But who cares, they’re an LLC, no one individual is personally liable? So then all sorts of people start looking in to what happened and the only person they can find is the seller. HHhhmmm… And then finally the seller has attorney’s and maybe some police and/or detectives looking in to loan fraud and maybe just maybe they start bringing up deception by the seller and start trying to link the seller to all of this. I don’t know, maybe I’m just nuts but think about this entire deal on the table, something isn’t right!