Posted by Tom-FL on September 25, 2004 at 24:36:10:
Clandestine agreements outside of closing “legal”?
Surreptitious payments off the HUD1 “legal”?
Go to your local REI meeting and find a title outfit that knows how to close these things without perjury.
Seasoning issue, Closing, Legal? - Posted by Guvlem
Posted by Guvlem on September 24, 2004 at 09:51:13:
Here’s a “hypothetical” situation. It’s a little long
-A house is put under contract at a discount by investor for the purpose of creating an owner-financed mortgage and selling it for cash.
-Investor INSTEAD finds retail buyer that is a good candidate for a more traditional/subprime loan instead. (for ability to get 100% (80-20 combo loan) when then have little cash).
-Loan rep advises investor to alter agreement with original seller to give him any funds above $78,000 (invester got 102,000 minus closing costs) as a separate agreement outside of closing, saying that is the only “legal” way to close it based on the changing in the lending industry in the “Patriot Act”.
-In such and agreement what thing of value would be puchased…(option, relinquishing interest in the property, or other) I don’t know. And “he” doesn’t know how to write up such a thing.
-Lender Rep. bottom-lined it by saying that investor couldn’t show on the HUD sheet. Investor worries and wonders.
-Title company wants to have an agreement between the current title-holder and the END buyer “for their file”. Investor is not sure of this practice.
-Is such an agreement legal?
-Is there another way for this person to do it and close it?