Hi everyone: I have a problem:
Somebody called me for help and said that he signed all Mortgage paperwork for his friend and now he’ve got Note of Default! He was asking me to do a short sale on the property he owes only on paper! Is it a moprtgage fraud? :shocked I feel like staying away from it! What can he say in a Hardship Letter? “I signed Mortgage for someone who can not get a loan?” Any ideas? Nice house around $500K
Sounds like trouble to me. Are you saying he got the mortgage but does not own the property? I’m a little confused on how that would happen.
I agree. It sounds like trouble. There is a very old scam out there which involves getting a “straw buyer”, or a buyer that has pretty good credit, who applys for the loan. The deal goes to closing and the Straw Buyer gets money under the table for doing the deal and he is not to worry about the payments because the house is worth so much. Usually this may also involve a bad appraiser. The investor also makes money on the house and is subsequently off the hook. Then when the payments are due, nobody pays and the Straw Buyer is left holding the bag with destroyed credit. The seller has perfect credit and has made a lot of money. Greed got the Straw Buyer into this. His only out is to sell the house … until he finds out how much he owes, and how much its worth.
It sounds to me more like he agreed to be a co-signer.
If that is the case, he needs to start making those payments. like he agreed to do when he co-signed.
If he is the co-signer, he can’t agree to a short sale unless his “friend”, the original purchaser and the holder of the deed agrees to do it.
Thank you! I told him that we need to meet at least to discuss his situation. I don’t even know if he tried to talk to his friend and found out what’s going on…maybe he could reconcile this problem with his friend…didn’t have chance to talk to him yet, besides I don’t want to be annoying. If he needs help, he will call, right?