Pass Thru Close

has anyone heard of a pass thru closing and is it legal? A loan officer was trying to explain it to me really fast and it seems kinda shady

Comments(1)

  • Lufos5th September, 2004

    We have a similar type transaction out here in Calif. First let me explain. There are a few rather attractive houses in very good areas which seem to pass from one newly arrived movie type
    through their Business and their Agents.
    Works like this.

    A person arrives for a five picture deal, he moves in with his Agent setting the deal. He probably pays a little high but the payment structure is low in accordance with his present income. So say he does good and the first picture takes off. Of course he needs a better place and out he goes and the agent then sells to the next talent coming up. The closing consist of recordation of a Grant Deed and thats about it. No title report or policy and no notification to the holder of the lst Trust Deed who is probably a lunch friend of the agent. This way transaction fees are held to zilch and the property controled by the agent who uses it to display his new talent.

    Supose the talent does not take off and is a dud. Well out he goes and back to Podunk or he hangs out in cheap housing and tries again.

    Interesting and you get to see a Talent Agent playing Real Estate Broker sans license.

    Cheers Lucius

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