Unlike most real estate fraud, with fraud for shelter, “the resident sincerely intends to keep up with mortgage payments to continue to live in the property,” LawPRO said. “The straw buyer presents to the lawyer as the happy purchaser of the home. In effect, straw buyers are selling their good credit. They have no intention of living in the home,” said the website. “The risks for lawyers in this arrangement are obvious: When the person(s) behind the scheme default on the mortgage, the ‘friend’ or other straw buyer will be on the hook, pursued by the bank and facing financial ruin.

Source: Ethiopian News January 16, 2020 21:27 UTC