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Updated 12 months ago on . Most recent reply

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Rashid Khalil
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Lien Off using a bond

Rashid Khalil
Posted

If I use a discharge bind to remove a lien for title transfer, can i transfer the lien back to the property after the transfer to free my surety bond money?

thanks 

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Jay Hinrichs
Professional Services
#1 All Forums Contributor
  • Lender
  • Lake Oswego OR Summerlin, NV
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Jay Hinrichs
Professional Services
#1 All Forums Contributor
  • Lender
  • Lake Oswego OR Summerlin, NV
Replied
Quote from @Don Konipol:
Quote from @Chris Seveney:
Quote from @Rashid Khalil:

thanks Chris

just trying to understand, why would it be a fraud? if I am buying the house and just temporarily supporting the lien with another asset to facilitate title transfer.

appreciate your help 


 your post does not make a lot of sense. You need to be more descriptive. What type of lien is it? what is it on? what are you doing with the asset that it is on? 

The way it sounds is you want to sell an asset, not pay off the lien and get a bond to cover the lien and then stick the lien on another property. If that is the case I would be SHOCKED if any bonding company would bond over that. But hey, who knows give it a try.

Either the OP knows something we don’t, or he bought a 1970’s Guru cassette tape.  I think either Joe Land or Dave Del Gotto used to propose something like this when treasury bond interest rates were 16%.  You substitute a treasury bond yielding 16% with a coupon of 10% which you purchase for 60c on the dollar as collateral for the mortgage on the property with the mortgage that is carrying say 10% interest.  You end up making the difference in the principal of the mortgage and the price paid for the bond.  I think the OP is mixing up a surety bond with a treasury bond.  
@Jay Hinrichs, do you remember who used to promote this strategy? 

Chris, too bad you’re so young you missed all the 1970s and 1980s fun! 

 I do remember.. I cant recall the exact name it was something like a zero coupon bond.. and the setting we used it in was a new townhouse project that I was the broker on and it was not selling and the owner came up with this..  Hey we sell them the houses but we give them a zero coupon bond that will over 30 years end up paying for the house and we can buy it today for like 5k  something like that.. I had not thought of that in years :)

Don its Dave Del Dotto  :)  he has a few wineries in the Napa valley and makes great wine.. One of them was right across the street from my house when i lived there its the one on Atlas peak rd.  He would hang at the winery and engage for those coming in for tastings I had many a half sober conversation with him about his being the first late night TV guy.. pretty interesting dude. 

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