Quote:
Originally posted by RANDY P
Straw purchase scheme - person B is in a lot of trouble if it fails or the lender finds out. You can't just deed it back to person A after closing- the lender will find out and promptly demand repayment in full.
rjp
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Randy,
They don't deed it back per se, Person A must legally purchase it back from person B via cash or financing.
Person B legally purchases the home from Person A initially as well. The only hitch is a legal contrct where B must sell to A at a predetermined price after two years of successfull payments and subsequent buyout.