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myidealist · Joined: 18 Oct 2009 Posts: 3 1.56 Dollars($)

Can you find any holes in the following process:

1. John Doe takes out $500,000 mortgage to buy Jane Doe's house.
2. Jane Doe transfers $500,000 to John's bank account and in turn John transfers property title back to Jane.
3. The net effect is that John just received a personal loan for $500,000, which he is paying back at 5% interest.
Can this work?

myidealist · Joined: 18 Oct 2009 Posts: 3 1.56 Dollars($)

By the way, Jane Doe's incentive for participating in this process is a cut of the money, say $50,000. Everyone wins

eric1 · Posted: Sun Oct 18, 2009 5:25 pm Post subject:

Yeah, the problem is that there is a lien on the property (deed). That deed cannot be transferred without the lien being satisfied. So, when you attempt to transfer the property back to Jane, the bank will have to be repaid the $500k. So, you have accomplished nothing.

myidealist · Joined: 18 Oct 2009 Posts: 3 1.56 Dollars($)

Thank you Eric for answering my question

sunnyca2009 · Joined: 04 Aug 2009 Posts: 1731 35.55 Dollars($)

Looks like some puzzle

May be some one is trying something

Company	Loan Type	APR	Est. Pmt.
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Property State:
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