Gorgeous tile, fresh hardwood, new cabinets, stainless steel appliances.

He sees his best chance as walking away from the place under the terms of Settlement, and taking the add’l credit hit for this, but being able to start fresh somewhere else.ACTION: I asked him to email me a few-sentence summary of what he owes, what the current state of play with the bank is, etc., and told him we’d look at the numbers and see if there was a way to help him.He has plenty of motivation, but negative equity.

So I think this is not a big deal.I thought I would ask Bigger Pockets for clarity as I didn't want to ask the lender and reveal my ignorance..Mike

Anna wanted to buy a $170K property for $20K because the guy bought it for $8K ("...my information comes from the County Recorder and there's no flaws coming from there...") but revealed later the purchase was in 1980 and the owner has (allegedly) not performed deferred maintenance.Anna would create the crisis by notifying code enforcement that would make seller accept her offer with the logic "would he rather take the $20,000 - $40,000 cash offer or deal with Code Enforcement and all the fee violations and or including losing out on the property all together?"

Sebastian,The fact that your friend has been able to obtain several mortgages with low down payments revealed that not only he has committed mortgage fraud, but he has also not reported the rental income.

If it's a new construction freshly rehabbed it would sell for $225k-$300k depending on where its located but older houses that are newly rehabbed sell for $200k-$250k.From a buy and hold side I would never want to be higher that 65(maybe 70%) LTV and with this model I don't see why I would ever have to.

While you mention there are no points, perhaps there are processing charges or something similar which would be revealed in the APR.

Good luck with your fresh start.

Many subtle things can be done that lets people tip their had to you without you revealing yourself.

From what you've said, the only impropriety here is if the seller is getting any type of fee from the listing, or if the listing/selling agent is a legal part of the buying entity, and does not reveal it to the bank