Practicality of a crazy idea

[David Piqueira]

I thought of this crazy idea and wanted to write about it just to see if other people think this could work in practice. I want to state that I have no desire, intention, or ability to actually do this. It was just something I was thinking of and wanted to throw out this wacky scheme for discussion. There's probably reasons why this wouldn't actually work in real life. Besides, it's a bit conniving and questionably unethical.

You buy a house, but never make any mortgage payments. Wait 12 - 18 months and have a friend contact the lending institution to buy the note at a discount. You pay the friend the value of the note and now you have a house that you bought at like half price.

Would this actually work?

[Kyle J.]

I could tell you the fault in your plan, but why even discuss something like this? It’s more than “a bit conniving and questionably unethical”. It’s fraud and fully unethical. A bit like saying “I don’t really plan to rob a bank, but how would I get away with it if I did?”