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Legaility question regarding selling a house for more than its worth
Posted on 3/7/15 at 10:35 am
Posted on 3/7/15 at 10:35 am
Is this wrong/illegal in the sense that it could be construed as predatory lending?
If I have a house worth $15,000 and sell it for $30,000 is that illegal? I know on the surface it seems like the answer is "hell no" but it feels like it is. I would be owner financing the house and would follow all the rules pertaining to the "SAFE Act" and "Dodd Frank Act".
Thoughts from bankers or people in the know?
ETA: I would be owner financing this property obviously because the appraisal would not come in near 30k.
If I have a house worth $15,000 and sell it for $30,000 is that illegal? I know on the surface it seems like the answer is "hell no" but it feels like it is. I would be owner financing the house and would follow all the rules pertaining to the "SAFE Act" and "Dodd Frank Act".
Thoughts from bankers or people in the know?
ETA: I would be owner financing this property obviously because the appraisal would not come in near 30k.
This post was edited on 3/7/15 at 11:25 am
7
Posted on 3/7/15 at 10:45 am to I Love Bama
Just because you think it's worth $15k doesn't mean it's not worth $30k to someone else.
Posted on 3/7/15 at 10:56 am to I Love Bama
If you have a house worth 15 and sell it for 30 then that house is worth 30. Something is only worth what someone else will pay for it.
Capitalism is not illegal
Capitalism is not illegal
Posted on 3/7/15 at 10:57 am to SFCATiger
Unfortunately, I KNOW what it is worth. The other party is uneducated and uninformed. Trust me, I want this to be legal but it seems very predatory. I've asked this question on other forums and it seems to be split 50/50.
Posted on 3/7/15 at 10:58 am to iAmBatman
quote:
Capitalism is not illegal
With all the banking rules and regulations I wouldn't be so sure....
Posted on 3/7/15 at 10:59 am to SFCATiger
quote:
Just because you think it's worth $15k doesn't mean it's not worth $30k to someone else.
This.
At that price, maybe the buyer needs to show that he has a home in order to impress his probation officer or something like that.
Posted on 3/7/15 at 11:00 am to foshizzle
You know how the pricing is in "Roll Tide" country.
Posted on 3/7/15 at 11:06 am to I Love Bama
quote:
Unfortunately, I KNOW what it is worth. The other party is uneducated and uninformed
This may be your problem.
Additionally, your thread title and your OP are asking two different questions IMO. You seem to know the answer to the thread title - if you're having this much doubt, it probably isn't morally acceptable. However, the legality of the matter is a totally different question.
I'm not an expert on the subject, but I'd do whatever you need to do in order to sleep at night.
Posted on 3/7/15 at 11:22 am to I Love Bama
As long as you disclose any and every problem with the property I don't see the issue??
Posted on 3/7/15 at 11:24 am to slackster
quote:
I'm not an expert on the subject, but I'd do whatever you need to do in order to sleep at night.
I changed the title to legality. I'll sleep fine.
Posted on 3/7/15 at 11:46 am to I Love Bama
How do you define "worth"? Fair Market Value is generally seen as the amount reached by two unrelated parties in an arms length transaction with neither party under duress.
So I don't think you have a problem because the purchaser agrees to buy something more than it's worth.
I do think you may have two issues to consider.
1) The owner financing part - there are some new regulations that you might want to review.
2) Is this a trailer? I seem to recall there being some sales rules with manufactured homes.
So I don't think you have a problem because the purchaser agrees to buy something more than it's worth.
I do think you may have two issues to consider.
1) The owner financing part - there are some new regulations that you might want to review.
2) Is this a trailer? I seem to recall there being some sales rules with manufactured homes.
Posted on 3/7/15 at 12:00 pm to LSUFanHouston
quote:
1) The owner financing part - there are some new regulations that you might want to review.
Currently in the process of becoming an expert on the subject. I'm not there yet but I do feel like I know more than the 2 real estate lawyers I have spoke with. Seems to be a lot of conflicting information out there.
quote:
2) Is this a trailer? I seem to recall there being some sales rules with manufactured homes.
It is a single family home.
Posted on 3/7/15 at 12:28 pm to I Love Bama
quote:
It is a single family home.
So now I'm curious what a $15,000 home looks like.
Posted on 3/7/15 at 12:47 pm to LSUFanHouston
Something's worth is what someone is willing to pay for it. It's not your job to educate a buyer on the worth. Enjoy your profit.
Posted on 3/7/15 at 12:56 pm to LSUFanHouston
quote:
So now I'm curious what a $15,000 home looks like.
LOL
Posted on 3/7/15 at 12:56 pm to I Love Bama
quote:
I Love Bama
Are you in the Birmingham area? I currently know a friend getting swindled by a predatory agent.....
Posted on 3/7/15 at 1:00 pm to LSUFanHouston
I would be surprised to hear this was illegal.
Posted on 3/7/15 at 1:17 pm to Stingray
I wouldn't be surprised to find out that there would be remedies available to the unsuspecting buyer, for example: lesion, fraud, or deceptive trade practices depending on the state.
Posted on 3/7/15 at 1:18 pm to I Love Bama
"Selling a house for more than it's worth" doesn't mean anything.
If someone pays a certain amount for something, that's what it's worth.
If someone pays a certain amount for something, that's what it's worth.
Posted on 3/7/15 at 1:41 pm to slackster
quote:
I'm not an expert on the subject, but I'd do whatever you need to do in order to sleep at night.
Sell it for 45k?
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