Posted by Tom-FL on April 13, 2005 at 21:01:51:
It’s called table funding. Ask about it in the cash flow forum.
Is this legal? - Posted by Robert
Posted by Robert on April 11, 2005 at 10:33:36:
hi,
I have a question concerning creative realestate and notes. I was wondering if the seller of a home, would deed the home to the buyer and the seller would draw up a new private mortgage on the agreed price of the home.
The seller would then sell the new mortgage note to an paper investor, recieve the discounted note amount of the new mortgage note to re-pay the previous lender they had the loan with, and keep any profits from the sale of their home.
The buyer of their home would send the monthly payments from this newly created mortgage to the investor that bought the mortgage note.
Of course no real-estate contract would be signed utill a buyer of the mortgage note was in place.
Would this be legal an ethical?
Everyone is still being paid, it just short cuircuts the whole system. In my mind I think of ebay. People all day long buying and selling things they dont own for a higher price. How much more could a home seller sell whats theirs, by taking a privately held note, and ask for interest and monthly payments then resell the note.
Thanks