I know a builder who was in default on his construction loan on a small neighborhood project, (45 homes). The lender has give him every opportunity but he keeps screwing up the sales office and team. Now, under the gun, he got some old friends to put 3 of them under contract for 90 day escrows, hoping that by the time the 90 days are up, he will have 3 legitimate escrows and his friends can cancel their contracts, thereby fulfilling his requirement to get 3 in to escrow immediately. Is this not an attempt to defraud the bank? What are the changes that the bank knows these are bogus contracts and they want to keep their fat out of the fire with their investors? What is the ethical thing to do? There is nothing in it for me either way. I do, though, find him arrogent.
2006-07-16
21:46:52
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6 answers
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asked by
Anonymous