Posted by Jprop on September 25, 2005 at 21:18:53:
Because the borrower can only afford a certain payment and a higher rate would yield a higher payment. Also, my rate of return requirement for my money invested is higher than the stated mandated limit. I though by structuring the loan this way I would be able to capture my return, but apparently not.
Mortgage Legality - Posted by Jprop
Posted by Jprop on September 22, 2005 at 22:42:01:
Let’s say I lend $10,000 to a homeowner and record a mortgage for $12,000. There is no HUD or settlement statement drafted. All that is done is a check is passed from me to the homeowner in the amount of $10,000. Is there any problem legally for recording a mortgage for $12,000 if the homeowner agrees and signs off? If I have to foreclosure or get paid off, would I ever get into a “jam” because there are conflicting #'s? Is this type of transaction legal?
Re: Mortgage Legality - Posted by JohnBoy
Posted by JohnBoy on September 25, 2005 at 15:31:45:
If you are loaning $10k then why do you need to record a mortgage for $12k? What is the purpose behind doing this?
Re: Mortgage Legality - Posted by Brian (UT)
Posted by Brian (UT) on September 23, 2005 at 11:23:27:
In the states I’ve done business in you have just violated the usuary laws unless your an exempt lender.
Brian
Re: Mortgage Legality - Posted by Jprop
Posted by Jprop on September 25, 2005 at 16:16:24:
The idea behind it is to increase my ROI. I have heard from serveral sources though you can’t do this type of transaction if you want to stay legal.
Re: Mortgage Legality - Posted by JohnBoy
Posted by JohnBoy on September 25, 2005 at 19:08:00:
Then why not just adjust the rate to reflect the additional $2k?