Is this legal?

I bought my home in December of 09. I paid what the appraisal went for and got the bank loan. At the same time the guy selling the house said it was worth more so he would sell it for the appraisal price and take out an 2nd for an additional 7k that the banks didnt know about to make up for what he thought the house is worth. So each month I'm making my house payment and paying this guy back 100.00 on top of that. He went through a lawyer when he set the papers up. Is this legal in North Carolina?

iamshayok said:

He went through a lawyer when he set the papers up. Is this legal in North Carolina?

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I don't know. You would have to have another attorney review those papers.

According to your post you and the buyer agreed on the "appraised price". Why did you borrow $7000 from the buyer? Was the actual selling price the appraised price + $7000? If so, did you tell the mortgage company what the actual selling price was and that there would be a second mortgage? Why didn't you just borrow an extra $7000 in the 1st mortgage
I don't think that the seller did anything illegal but I'm not sure about the buyer.

Good luck

Dave1952 said:

Why didn't you just borrow an extra $7000 in the 1st mortgage

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because the appraisal wouldn't support a higher loan amount.






what was the amount on the buy/sell agreement?