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Old 05-05-2010, 01:22 PM   #53
fredr123
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Quote:
Originally Posted by Muta View Post
Now that I know how this works (even though I still don't fully understand it), I believe I know people who have gotten EXTREMELY rich this way. Like... having a 'Maserati as your spare car' type of rich.

In this scam, though, don't you have to pay back the mortgage at some point anyways? If so, where's the incentive to pocket the extra $50k? And why are you not allowed to put these mortgages under your own name? I'm not too familiar with this type of stuff, I've just never been interested enough to find out.
If you put the mortgage under your own name then you bear the risk of foreclosure proceedings if payments aren't made. If you get some goof to put his name on title, then he's the one left holding the bag.
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