Three mortgage scams
1
WRAP AROUND MORTGAGE LEASE TO OWN CONTRACT FOR DEED A lease to own mortgage is offered by the seller when an interested buyer doesn’t qualify for a loan to pay for the home. The buyer pays overpriced rent until they build up credit to qualify for a mortgage. If the buyer cannot qualify after a certain time period, the seller can kick the buyer out of the home and keep the money they paid. A seller will offer a wraparound mortgage when a buyer cannot qualify for a lender’s mortgage. The buyer gives payments to the seller, and the seller pays their bank. A seller could pocket the money and cause the house to be foreclosed, or overcharge the buyer and pocket the money. The contract for deed mortgage scam begins like a lease to own. The buyer agrees to pay the seller rent payments to purchase the home over time. However, the seller won’t give the buyer the deed to the home until they pay for it in full, which could take 20 years. If a buyer misses a payment, the seller could kick them out of the home.
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Transcript of Three mortgage scams
WRAP AROUND MORTGAGE
LEASE TO OWN
CONTRACT FOR DEED
A lease to own mortgage is offered by the seller when an interested buyer doesn’t qualify for a loan to pay for the home.
The buyer pays overpriced rent until they build up credit to qualify for a mortgage. If the buyer cannot qualify after a certain time period, the seller can kick the buyer out of the home and keep the money they paid.
A seller will offer a wraparound mortgage when a buyer cannot qualify for a lender’s mortgage.
The buyer gives payments to the seller, and the seller pays their bank.
A seller could pocket the money and cause the house to be foreclosed, or overcharge the buyer and pocket the money.
The contract for deed mortgage scam begins like a lease to own.
The buyer agrees to pay the seller rent payments to purchase the home over time. However, the seller won’t give the buyer the deed to the home until they pay for it in full, which could take 20 years.
If a buyer misses a payment, the seller could kick them out of the home.
