The "investor" could never exercise that option without lying to the bank.

They are going to lie their heads off and claim they own nothing.

If he's not afraid to lie to the IRS, he's not afraid to lie to you either.

Don't skimp, however, or try to say you are living in the property, because if something happens, and you lied, your claim can be denied.

I bought 5 properties and have 2 under contract with about that much money...But then I don't really believe in following McKellar's advice (walk before you run) :) Swing for the fences, that's where the glory lies!!

It sounds like he is a car salesman in disguise but to be honest, lying in RE is very typical.

And that's why you need to have $4.72 million lying around... doesn't the banks have the right to redeem the tax liens on the properties?

If you lie and say none of it is borrowed, you're committing loan fraud.

If you don't intend to stay in it but say that you will, then that's considered lying.

And obviously, lying on a mortgage application is fraud and should be treated as such.The real problem with the system is that the foreclosure process takes too long and allows people to take advantage of it.