Practicality of a crazy idea
I thought of this crazy idea and wanted to write about it just to see if other people think this could work in practice. I want to state that I have no desire, intention, or ability to actually do this. It was just something I was thinking of and wanted to throw out this wacky scheme for discussion. There's probably reasons why this wouldn't actually work in real life. Besides, it's a bit conniving and questionably unethical.
You buy a house, but never make any mortgage payments. Wait 12 - 18 months and have a friend contact the lending institution to buy the note at a discount. You pay the friend the value of the note and now you have a house that you bought at like half price.
Would this actually work?