Cosigning for a contractor?

[thismybgolname]

This guy at my job has been telling me about some new "come up" that he has where he gets a loan for a contractor in his name. The house has already been purchased by someone but for whatever reason the contractor needs someone to get a loan in their name and front the money.

Once the house is completely built and the paper work has been completed then you get all your money back plus whatever additional closing costs.

My question for him was why would a reputable company need some random person getting a loan in their name? He couldn't really give me an answer to the question but said that he was going to try it and let me know how it turned out.

This is also the guy that purchased a house, had someone appraise the house for more than what it was worth, then sold it and took the equity out of the house(which I don't think is legal but he calls it a loophole.)


Has anyone heard of this before?

 

[QueEx]

Sounds like you've answered your own questions. Now, don't second guess yourself right into liability.

 

[Deezz]

Absoulutely not. Your credit will be ruined and you lose money on top of it.

 

[deputy dawg]

run away FAST!!
don't even ask about it later 'cuz when it doesn't work out like he said it would, you'll never get the truth anyway...

 

[kjxxxx]

This guy at my job has been telling me about some new "come up" that he has where he gets a loan for a contractor in his name. The house has already been purchased by someone but for whatever reason the contractor needs someone to get a loan in their name and front the money.

Once the house is completely built and the paper work has been completed then you get all your money back plus whatever additional closing costs.

My question for him was why would a reputable company need some random person getting a loan in their name? He couldn't really give me an answer to the question but said that he was going to try it and let me know how it turned out.

This is also the guy that purchased a house, had someone appraise the house for more than what it was worth, then sold it and took the equity out of the house(which I don't think is legal but he calls it a loophole.)


Has anyone heard of this before?

It could be a good deal. The thing is you have to trust the contractor. I find that a lot of the contractors out there are shady.

The reason they would need your credit is becuase theirs are shot or they are overextended.

If you ever get into anything like that make sure that he has something to risk or that all he is is the builder and you own the house, he gets paid only when work is done. Materials get order from your account. Say you have a home depot account or something and he goes there and oders the material. Basically you will become the project manager. Get you a lawyer before you sign anything. Tell him you will go over it with your lawyer.

Since this is his shit he will not want any thing that limits his freedom.

 

[thismybgolname]

It could be a good deal. The thing is you have to trust the contractor. I find that a lot of the contractors out there are shady.

The reason they would need your credit is becuase theirs are shot or they are overextended.

If you ever get into anything like that make sure that he has something to risk or that all he is is the builder and you own the house, he gets paid only when work is done. Materials get order from your account. Say you have a home depot account or something and he goes there and oders the material. Basically you will become the project manager. Get you a lawyer before you sign anything. Tell him you will go over it with your lawyer.

Since this is his shit he will not want any thing that limits his freedom.

That is what they guy is trying to do. I didn't think about getting a lawyer to make sure that I don't get screwed. Thanks.