Pre-payment Penalty

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Hi guys! Quick question. I found a property in Atlanta Ga., for around $70k, but it appraises for around $100k. What I would like to do is purchase the property, and then quick sell it to someone else, so that we could cask out on the $30k. Is that illegal? If not, how would I go about doing that in this state without catching a pre-payment penalty? Do I have to wait a certain amount of days or could I buy and sell on closing day. Any advice on this subject would be greatly appreciated.

Comments(1)

  • sammymh22nd June, 2005

    1st no it is not illegal if your not inflating the appraisal above it real value.
    2nd when you wholesale you do not get a loan, the title company consider it the cash side so there will be no pre-payment that would concern you.

    You have to find a lender for the retail side that does not care about title seasoning.
    You have to find a title company that will allow you to do the transaction from back to front

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