I thought Cubby's post meant that even for a balloon or pledged asset mortgage, the buyer still has to pony up 10%.
Fudging on the property's fair market value? Say a hypothetical house was valued at $1 million and sold for $750K, could the buyer use some of that built-in equity to slither through the paperwork requirements assisted by a friend in the right place?
The only other thing I can come up with is that AH lied about his income, perhaps aided by documentation cooked up by his loving aunts.
If it were going to be a co-ownership, for instance AH and the Harrod family trust, the name of the trust would appear as co-owner.
Or...
A few years ago, when a business deal I had went bad, I consulted with a student who is a lawyer specialising in property law. She did a little poking around for me and figured out what my business partner was up to. I wish I could recall all the details but the ingredients were that my partner was claiming property that had been sold to me and recorded in my name as collateral for another loan. She forged my signature to the supporting documents, taking them in already signed and then signing them herself in the presence of the notary. Which is supposed to be a big no-no but in practice, some notaries are stricter in their observance of the letter of the law than others.
I got out just in time. I considered suing my former partner but my own lawyer did some research and said that in his opinion, I had a strong case but there were so many other people in line ahead of me that he did not think I would ever be able to recover a judgment from her (the blood from a turnip principle of liability protection).
How difficult would it be to find out if any of Bob's property has a lien against it?
Or am I totally off base here?
