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Updated about 4 years ago on . Most recent reply

User Stats

119
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53
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Steve Hiltabiddle
  • Lender
  • Pennysylvania
53
Votes |
119
Posts

Is this a scam? Seller Financing

Steve Hiltabiddle
  • Lender
  • Pennysylvania
Posted

Good morning.  I had a buyer approach me with the following proposition

I'm looking for a investor to buy me a house and sell it back to me through a owner financing/land contract whit 80grand cash down for a 250k plus house that you or I find just for under 5 years


Seems they have familiarity with seller financing which makes me wonder if they have an underlying scam going on.  Perhaps get into a house for $80k then stop paying on the loan delaying foreclosure as long as possible (I live in PA which is a judicial state). 

I don't loan to owner occupants so I'm sure there are ways to keep me as owner of the property but curious how quickly this can go the wrong way.

Thanks,

Steve

  • Steve Hiltabiddle
  • Most Popular Reply

    User Stats

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    Steve Morris
    • Real Estate Broker
    • Portland, OR
    2,376
    Votes |
    4,039
    Posts
    Steve Morris
    • Real Estate Broker
    • Portland, OR
    Replied

    Usually guys do seller financing when they've owned a property a long time and don't want the bother, however, don't want a tax consequence (depends on how structured) of a sale.

    I haven't heard of someone creating a deal for the sole sake of being a lender.  Think I'd rather take the same money and invest it.

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