Legal Question in Real Estate Law in Illinois

Use of credit

This will be long so I will summarize. I have agreed to provide the credit for some business partners as they purchase foreclosed homes. According to each they have numerous properties in there name so they need some new blood so to speak. For the use of my credit they will pay me $5K. I fully understand the process and what they will be doing. They will pay all expenses, down payment, etc. etc. and once the home sells my name should clear title and receive the funds. I have told them that I want an agreement that spells out exactly how the process will go. It will state the property we are buying, what expenses they are responsible for, what they will compensate me for. I have signed a blank real estate contract as they bid on a number of houses everyday. I have provided my personal information to their lender which happens to be one of their fiancee. My questions are this:

Am I doing something stupid I am going to regret?

Will the agreement protect me?

I plan on being a named insured on the insurance so that should limit my liability.

My last question is should I sign a power of attorney for closing? I have work so attending a closing is not easy but I also do not want them to be able to use this for anything.


Asked on 10/10/07, 11:32 am

1 Answer from Attorneys
Thomas Moens Moens Law Offices, Chartered

Re: Use of credit

Am I doing something stupid I am going to regret?

Well, stupid is a pretty harsh word. I would not do this, and I would not recommend to any of my clients that they get involved in a scheme like this.

Will the agreement protect me?

First, it depends on what the agreement says, and second, if there is any fraud or criminal conduct involved in the transaction, then I doubt if any agreement would protect you.

My last question is should I sign a power of attorney for closing?

I certainly would not recommend this approach. Who knows what documents they will be signing on your behalf?

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Answered on 10/12/07, 3:18 pm


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