Purchase Money?
This just happened is it legal?
Ad in local paper "Private Investors Needed, $50-$100 K, 14%, 1 year max , 75% LTV."
Private Lender answers ad agreeing to provide Purchase Money. Buyer now changes the terms to 12% and 3 points.
Borrower provides current values, shows LT under 75%. Escrow to provide Trust Deeds with Haz Ins and ALTA title Ins.
Escrow pays Borrower $478,000. by COE. Ins is canceled 1 month later for non payment, CLTA title policy issued. Lender never sees a closing statement.,
All 37 loans end up in foreclosure within less than a year. Borrower skims rents right up to the Trustee Sale then walks away with stuffed pockets.
Four months later he files a law suit against the lender for charging Usury Interest.
I thought Purchase Money could only be used to purchase the property. Is this what the late night RE guru's are selling "Purchase with no money down?"
quite a scam, I really can't stand these prick scammers, they make me sick
So as I thought this is not just creative RE investing!! LOL.
Don't know why I'm laughing. This crook took my elderly folks for $804,000. and I've been trying to fight this crook for the last 3 years.
Then this guy had the balls to sue us!!! It's a malicious law suit meant only to discourage and financially break us. It's cost $146,000. in legal fees so far fighting his BK and trying to have his suit dismissed.
I feel the Escrow agent was involved in his scam but that's another issue. Wouldn't you know it, all new property is held in some 25 different Land Trusts