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From: spp@ucbvax.BERKELEY.EDU (Stephen P Pope)
Newsgroups: net.invest,net.consumers
Subject: Re: "No Money Down" (Other People's Money) Scam
Message-ID: <11288@ucbvax.BERKELEY.EDU>
Date: Mon, 23-Dec-85 20:34:31 EST
Article-I.D.: ucbvax.11288
Posted: Mon Dec 23 20:34:31 1985
Date-Received: Wed, 25-Dec-85 01:49:25 EST
References: <587@cylixd.UUCP>
Organization: University of California at Berkeley
Lines: 29
Xref: watmath net.invest:961 net.consumers:3642

> Most real-estate brokers dread the thought of these seminars coming
> to town. "We get a flurry of these no-money-down offers every time
> one of those guys comes through town. We don't even bother with them.
> It's a waste of our time and theirs," is a typical response. Most
> realtors have their standard form that says "initial deposit" on one
> line and "down payment" on another. If you can't fill in those lines
> with something reasonable, they don't want anything to do with you.
> 
> Dave Kirby    ( ...!ihnp4!akgub!cylixd!dave)

Actually, realty agents are required to present to the seller
all offers, however absurd.  They are also responsible to  
advise the seller if an offer (such as a 100
or more percent financing deal) is risky (they almost always are).

What's more the agent can be held liable if he doesn't follow
the rules, and the seller loses from the fraudulent sale.
But some no-money-down offers are legit -- for example, if there
is security besides the property being sold being offered 
for the second mortgage.  So agents who categorically reject
no money down offers aren't doing their job either.

It's pretty silly that seminar-giving types are still plugging
techniques that only worked when it was completely a buyer's
market.   But don't blame the seminarists (?), however sleazy they may
be, if the allegedly professional realty agents let their 
clients get swindled.  

steve pope (...ucbvax!spp)