Equity In Another Property
Sellers is 3 mts behind on the mortgage on her 2Flat; tax not paid; there is almost no equity. Looks like a good SS case!
They have a 4Flat with some equity (mtg=235K, listed for 297K); but the mtg on this one is on husbands name.
I would like to get 4F Sub2 and work on SS on 2F. Is the SS on 2F still possible; would they find out about the 4F on husbands name?
If they fail to disclose assets/income when asked, and they will be asked, that is considered a material misrepresentation, or fraud.
What if I buy the 4F Sub2 for mtg amount of $235K and write the a note for equity (say $20K); not record the note.
Or should I purchase the 4F conventionally for $235K so the mtg is off their name; give them a $20K note
Which of the above is feasible (I prefer Sub2); then is the SS on 2F a good case?
Thanks!