and he will pay me 10,000 US dollars, just until they fix the house, supposedly they will pay the mortgage until they sell the home , i wanna know if anyone has heard of anything similiar, or is it a scam.
2007-09-19 15:25:43 · 13 answers · asked by Rossy 3 in Business & Finance ➔ Renting & Real Estate
There is Definitely a scam like this. A guy in Stockton CA was just arrested for this same scam. He would buy a house for less than it's value, then, he would get a "straw buyer" (that is what you would be) to buy the house at an inflated price, he has a team that includes an appraiser that would overstate the value, then he made a couple of payments on it then let it go to foreclosure. He kept the profit from the sale and the "straw buyer" is left with ruined credit and no house. There is alot more to the story I just wanted to give you the "nutshell" go to recordnet.com and type in Amahd Real Estate Scam and you should get the entire story. Even if you think your guy is legit, check with an attorney before you sign on the dotted line. You never know and you could be ruined and have no recourse. The house will be in your name and you are the responsible party.
2007-09-19 15:46:09 · answer #1 · answered by livigninchrist! 2 · 1⤊ 0⤋
This is a fairly common scam. Several real estate "gurus" hype this technique as a way for someone with no money and no credit to buy property and flip it.
The trouble is this is mortgage fraud. You are purchasing a property for someone else who could not purchase it on their own. Plus it would be conspiracy and a few other things that a prosecutor would be happy to throw in. All of which equal federal jail time and hefty fines if caught.
That is assuming that the deal doesn't go south and leave you with a toxic waste dump for a property.
Run.
2007-09-20 02:01:38 · answer #2 · answered by rlloydevans 4 · 0⤊ 0⤋
Yes, it's called a "straw buyer", and it's a felony if you participate.
It is a well-known real estate scam.
They want to use your credit to secure the loan, they will strip the equity, and then STOP paying the mortgage...leaving you with a foreclosure on your credit and them absconding with the profit.
They tend to target students and Hispanics (who are new citizens), who have good credit and don't understand the system.
PS: Do EVERYONE a favor and play along like you are going to engage in the ploy and get the "Realtor" to "drop off" the paperwork at your home...when you get it (DON'T SIGN IT!), call the Real Estate Commission in your state...these people belong in prison and you can assure if they are trying to do this to you, they will do it to someone else.
2007-09-20 05:15:32 · answer #3 · answered by Expert8675309 7 · 0⤊ 0⤋
its a case by case scenario, if he wants to screw you & can, he will. if hes honest he wont. its not the procedure its the person. can you do what you described, the one thing is, if your the buyer & you receive 10k for buying it, this is illegal IF the lender doesnt know about it & if they did know, they probably wouldnt allow it. that being said i doubt your friend is a hard core criminal creating fraud, what you described is actually pretty common, most people just look at it as no big deal, but it is fraud & you lost the property to foreclosure & told the bank everything, you would get yourself & e1 involved in some trouble...how much, dont know talk to an attorney.
2007-09-19 23:08:56 · answer #4 · answered by Anonymous · 0⤊ 0⤋
When it sounds to good to be true, it is too good to be true.
This is not a friend. This is someone setting you up to be a straw buyer for some reason, and you will be the one paying the piper. And doing the time.
2007-09-19 22:39:59 · answer #5 · answered by godged 7 · 1⤊ 0⤋
Rossy
Your name is on the contract. Your name is on the mortgage. Your name is on the tax bill. I would want a lot more than his verbal promise to be responsible for all of those current and potential costs.
2007-09-19 22:34:16 · answer #6 · answered by HH@20 2 · 0⤊ 0⤋
Rossy,
got running shoe on? good start running now. u'll get stuck hard with a house that won't sell and a mortgage from hadies.
Run!
Never ever let ANYONE use ur credit, period. even if u are married.
2007-09-19 22:33:18 · answer #7 · answered by Anonymous · 2⤊ 0⤋
Now WHY would anyone other than a relative do this for someone????? Why can't they use THEIR credit? Don't let anyone use your credit. It is valuable and becoming more so every day.
2007-09-19 22:59:19 · answer #8 · answered by dianaparisian 4 · 0⤊ 0⤋
friend?
why dont you search what a 'straw buyer' is....then maybe you'll think about making new friends.
friends that wont put you in jail for a minimum of 1yr for each FELONY COUNT
2007-09-19 22:35:43 · answer #9 · answered by Anonymous · 0⤊ 0⤋
Arrgh! Now don't ye be doin' a thin' like that or you'll be lookin to send that "friend" to Davy Jones' locker!
2007-09-19 22:42:18 · answer #10 · answered by teran_realtor 7 · 0⤊ 1⤋