Has anyone heard of renting the use of collateral to put up for a loan? If so, do you know where to find it?
Never heard of it. Curious how you can use an asset that you do not own as collateral for a loan. Seems like that would require some form of misrepresentation when you sign over the security agreement to the lender.
Claiming assets that don’t rightfully belong to you in the context of a loan application is a form of mortgage fraud.
Don’t bother…
Regards,
Scott Miller
Definitely not into commiting lender fraud. I wish I could remember where I first heard of it (when I didn’t have any interest in it), but it seemed above-board, along the lines of purchasing a performance bond. Not some evil network of individuals lending out their collateral to each other for the purposes of scamming lenders.
There was a similar (and equally unlawful) strategy that suggested that you could purchase somebody’s else tradelines…Maybe that is what you are referring to.
Regards,
Scott Miller
The collateral will be at risk so it would be like co-signing the note with you. It could be done legally as long as the bank knows. I’ve actually used one company’s assets to pledge for another company’s loan before.
Were you the owner of both companies?
Let’s hope not, but I wouldn’t doubt it…
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Were you the owner of both companies?
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Yes, with other partners in each. Is there something wrong with doing that? I’ve done it several times.