Credit Investor, Straw Buyers, and Mortgage Fraud
credit investor from a bogus straw buyer.
A straw buyer uses a stolen identity or lies on the loan application to qualify for owner-occupied financing;
A credit buyer uses their own identity and their credit is good enough to qualify for non-owner occupied financing.
A straw buyer is offered money just for the use of their name on the loan application and may never even know what the investment is.
A credit partner is involved in the decision making process, understands the investment, and is offered a split of the proceeds when the deal is profitable.
A straw buyer transfers title and relinquishes control to the mastermind behind the scheme once financing is in place. A credit partner remains on title with the other partners (eg. tenants
in common, tenants by the entirety, etc.) or arranges to have title held in escrow (eg. a land trust) until the property is sold and profit is split between the partners.
These qualifications in my opinion are the finer distinctions that help investors use a credit investor is the appropriate way.
A straw buyer uses a stolen identity or lies on the loan application to qualify for owner-occupied financing;
A credit buyer uses their own identity and their credit is good enough to qualify for non-owner occupied financing.
A straw buyer is offered money just for the use of their name on the loan application and may never even know what the investment is.
A credit partner is involved in the decision making process, understands the investment, and is offered a split of the proceeds when the deal is profitable.
A straw buyer transfers title and relinquishes control to the mastermind behind the scheme once financing is in place. A credit partner remains on title with the other partners (eg. tenants
in common, tenants by the entirety, etc.) or arranges to have title held in escrow (eg. a land trust) until the property is sold and profit is split between the partners.
These qualifications in my opinion are the finer distinctions that help investors use a credit investor is the appropriate way.
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