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Buying a short sale for a friend.

I have been asked by a friend to purchase his home through the short sale process. According to him, It will not cost me a cent. He would put up the necessary cash (borrowed from relatives) and I would technically own his home for 2 years, at which time I would sign the home back over to him. He doesn't want to lose his home and he's sees this as the only way to maintain possession. What would be the risks to me for helping him in this situation?
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September 19 2013 - Jackson
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This is filled with pitfalls and potential legal problems. Maybe he can visit you in jail.

Let him borrow the money and get his loan paid up.
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September 19 2013
Sounds like mortgage fraud.  Talk to legal advisers or lenders. 
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September 19 2013
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Risks and pitfalls?   Sounds like your friend is asking you to commit fraud. That is NOT something a true friend asks.  Should you decide to respond ot your friend's request, it is possible that your next home will have bars on the windows, and the front door will have a lock that you can't open.

Your response "no thanks". 


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September 19 2013
Your heart is in the right place in wanting to help out your friend, but unfortunately this opens you both up to Mortgage Fraud.  As part of the short sale process, you will both most likely be required to sign paperwork at different points stating that the current owner will not remain as a tenant in the home.  Steer clear, it's not a good idea. 

Doug
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September 19 2013
Think about it for a minute.  Your "friend" is losing the property because he has no $$$ to pay for it.  Low and behold, now he has the $$$ to buy itt, most likely for less than what he owes the lender.  Should I continue, or do get the message.......
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September 19 2013
Your friend is asking you to help commit mortgage fraud. Just say NO! Its difficult to watch friends go through hard times (like potentially losing a home). But in this scenario he or she is asking you to do something that does have legal consequences for you and him or her. That not helping them...its making this problem worse. Your friend will understand when you tell them no. If they don't...please reconsider your friendship.
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September 19 2013
As everyone has mentioned, this is fraudulent.  Your friend is likely distraught and grasping at straws for a solution.  If his relatives are willing to give him the money to do this shady deal, then, they should also be willing to give him the money to catch up on his mortgage.  It's a gift, either way, so it's better to go a legal route than otherwise.
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September 20 2013
 
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