OCR go get this one. BTW it does have an offer already into the lender.
Hypothetically speaking… Let’s just say you are an unscrupulous broker who owns a home… and of course you do mortgages to… let’s not forget that one… So you make a deal with a “friend” of yours who may not care so much about his credit rating… You sell your house to your friend at an inflated price… you get help from an appraiser, find some brainless lender…perhaps first franklin and they fund the loan for your friend. You get paid off, and of course there are no commissions to pay since you are the broker for both sides, AND you got the loan so why not get another point or two. Then you pay for your friend to live in the house for say a year or two. Then your friend sells it short. Your friend basically has no assets or transferred many of his assets to your name or into a trust or into a family members name. So… your friend got to live in a nice LCV home free for a year and a half… you didn’t take a bath on a home which you bought at peak pricing in 2005… and the lender gets scratched for about 400k…
I am “sure” that is not the case here… shame on me for pulling the conspiracy card…[/quote]
(somewhat off topic) Nice SDRealtor.
Well pulled and well played.
If you never have, call Todd Lackner for your next buyer. He is the appraiser who works for the DOJ hunting straw buyers (you likely already knew this). He is really a kick to get chatting about the crazy lending schemes.
There is some complex in El Cajon where straw buyers bought 80 of 120 conversion units in bulk with nothing down (largely with different banks and owner occ loans) and for over asking. After seller kickback to them, they walked and left 40 units and homeowners to maintain the complex. Wow.
