Real Estate And Straw Buyer
| A straw buyer is a person who lends his profile to a buyer who wants to purchase a house. For this the straw buyer could get a commission or a cut from the profits made out of this misrepresentation.
People use straw buyers because their own financial profile is not good and also they manage to get good deals and secure financing options.
Straw buyers can be the victims of identity theft or out of their own choice. However, in either case, it is an illegal thing and a financial mistake.
People should never agree to make any kind of investment on someone else’s name, no matter how lucrative the offer might seem. It takes a lifetime for anyone to build a good financial standing and credit report. By agreeing to be a straw buyer, a person is risking everything that they have worked for.A straw buyer can also be a victim of identity theft. An impostor could be using the buyer's profile for the mortgage. In this case, the straw buyer does not know of the purchase, and will come to know only if they bother to check their credit report.More...
What Is The Definition Of Straw Buyer ?
A straw buyer is a person who willingly give out their profile information and personal details to people who want to obtain mortgage loans and have no intention of ever living in that property. A straw buyer will do this as a favor, for gifts or for commission. A straw buyer can also be a victim of identity theft. In this case, the straw buyer does not know that he is one.
In the former case, the straw buyer completely knows what he is doing, and is doing it willingly in the first place. They are taking money for selling their profile literally. There can be two legal implications for this. One is that being a straw buyer is illegal, and is a punishable crime. The other one is mortgage fraud because they are buying a house that they will not live in. This amounts to occupancy fraud. They are cheating the mortgage company in two ways. One is by lending the profile and the other is lying about their intent to live on the property they are purchasing. It is very difficult for the mortgage company to identify a straw buyer.More...