anotherlimey

The latest craze in [South] Florida's property market is to "sell" your credit to someone who wants to get rid of a house and still make a profit.

You buy the house, the seller gives you a portion of the money they made on the house, then you "give" the house to the bank and ruin your credit. I've heard of offers of between $10,000 and $75,000 for this.

Talk about a bubble.

USBound

ouch.. pretty much a one way street tho...

scrubbedexpat099

Appraisal?

Scams sort of like this have been running for years.

anotherlimey

This is only for those people trying to get rid of houses they bought as investments a few years ago and now can't afford the mortgage payments.

krizzy

The investment you get by owning homes is a plus...what happened to a house just being a place you lived in....

Saying that I'm looking at buying a few places near me which can't not make a bit of money at some point....but I'm still buying them for my kids to live in first...

When I buy homes I have just a few rules...
I can afford to own them...
They are homes that I can use or will use to live in or holiday in...
I can afford to own them...this is the big one worth repeating....
That I would be happy to own them for many many years....

lapin_windstar

So you 1) borrow money, 2) overpay, 3) get a kickback from the seller, 4) let the house go to foreclosure and 5) then go bankrupt?

Blimey. If you had already decided to go bankrupt for the hell of it, it seems like it would be a lot easier just to go out and borrow as much money in unsecured loans from the bank and buy as much cack as possible on the never never before flaming out. And what's the betting your scammer partner would disappear after step 2) in any case?

anotherlimey

Apparently you can hand the house back to the bank rather than go bankrupt; I'm not sure how that works, but it's supposed to have less impact on your credit than a bankruptcy.

It seems like everyone who's overextended themselves on these sub-prime mortgages is now shifting the responsibility to the banks by handing back their houses. :curse:

Again I'm not sure how the "handing back" works.

krizzy

We had a low rate...when we took out a new loan 3 years ago to buy a second house...its now gone up to what it was before...but we now own one of the homes so we can carry it....we can also pay 4 different amount per month...if we pay the lowest it will add about $600 to the loan that month...but we have a lot of equity...so sometimes having the extra money in hand works better for us...

scrubbedexpat099

You give them the keys.

If you have nay assets they will get the shortfall.

Your credit is shot either way.

lapin_windstar

yeah - surely if the house if worth less than the value of the loan, the bank will go after the rest of your assets. If you don't have any other assets, wouldn't you have to declare bankruptcy to not have to pay it back? And if you did have assets, they'd be seized and you'd lost that too, not just your credit rating.

Maybe I am missing something. I'd never make a good mortgage fraudster!

Thydney

Isn't it basically a repo? After all to get the mortgage you need it to be appraised at the value, then theres the PMI that they charge which covers them for any shortfall, basically fraud