Straw Buyers

[MsMoney]

I read this article and thought it pretty interesting, considering how crazy the market place is now in the real estate world.

Charges filed by California real estate commissioner against Su Casa agents - Silicon Valley / San Jose Business Journal:

I wonder how many other realtors & lenders are going to be arrested?

I'd like to know what you all think of this...Justified? or No??

Just wonderin'...

:coffee:

 

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[Jakko]

I don't really get it. The article seems to be very vague and doesn't really get into details of how the process is done. Maybe it's just me and if it is, can someone explain?

It says,

"The straw buyers let their credit lines and names be used by others to get the loans for real estate, the complaint says."

I thought it was legal if you are part of the deal because you can offer your partner what your partner doesn't have, be it your remarkable credit score or your credit line? They then would give you a percentage of the deal because of your help?

Is this not similar to what the article is describing? What are they doing that makes it illegal?