Posted by Natalie-VA on July 24, 2008 at 16:18:28:
You can’t tell what exactly he’s doing from watching the video alone, but he does mention that he’s not doing business with institutional lenders. He’s working with private lenders. His private lenders may not care what he’s doing as long as the numbers work.
–Natalie
Is this mortgage fraud? - Posted by FLNewbee
Posted by FLNewbee on July 24, 2008 at 15:57:38:
I am trying to learn as much as I can about wholesaling and rehabbing, and I bought this gurus course last week. This does not seem right, though. Can you really sell your house to your wife and keep the profits?
Thank you
Aaron B
Re: Is this mortgage fraud? - Posted by Dave T
Posted by Dave T on August 01, 2008 at 21:58:04:
I don’t see any difference between “selling to your wife” and doing a cash out refinance. In both cases, tthe new loan amount is probably limited to no more than 80% LTV.
Sell to your wife and you are still making the monthly loan payments, just as you would be if you refinanced in your own name.
Notice that he was specific about restricting this technique to private money lenders. He implies that institutional lenders won’t make the loan probably they will see it for what it really is – a refinance and process the loan application accordingly.
I don’t see any mortgage fraud here.
Re: Is this mortgage fraud? - Posted by Bill Jacobsen
Posted by Bill Jacobsen on July 25, 2008 at 09:45:15:
First, as was stated before, it would vary with state law concerning ownership of property. It is not mortgage fraud if you are disclosing who you are selling to and the relationship.
If this can be done in your state then this becomes a taxable transaction. Why do you want that? If you buy at $100K and sell to your wife for $150K where is the real profit between you and her?
If this is all the course taught I hope you did not pay a lot for it.
Good Luck,
Bill
Re: Is this mortgage fraud? - Posted by James Harris
Posted by James Harris on July 24, 2008 at 17:43:59:
Also, it might depend who’s on the title. Depending on which state ithe property is in. That won’t work in Missouri, here, if a husband or wife buys a piece of property they both have to be on title.