Legal Question in Business Law in Illinois

In addition to federal law, there are various state laws to consider, including but not limited to State securities laws, licensing as a mortgage banker and/or broker, probably registration with the Illinois Department if Financial Institutions, etc.

This sounds like a really potentially good idea, where you effectively have on-line auctions between owners and prospective lenders who "bid" for the debt, something like an investment grade "lending tree" type of site.

Since it could be worth more than $1,000, don't you think it's worth hring an attorney to do a complete review of this kind of arrangement? There's potentially a lot of research needs to go into not only the concept but properly structuring the company, and not only from a legal standpoint but potentially tax liability (improper structuring could have the result of casting the debt as ordinary income and NOT capital gain...). I hate to say it, but don't be pennywise and poundfoolish -- the worst case is that you set up a system that's not protected and the next thing you know is that three major players do the same thing and shut you out of the market..... If this were me and I thought it could be worth $1MM, I think I'd invest several thousand to make sure......

What do you think?

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