Austin Man Leaves Longtime Friend/Straw Buyer & Tenant Holding The Bag In Dubious Deal

In Austin, Texas, KXAN-TV reports:

• In 2006, Reggie Allen bought a home at 2000 Short Summer Drive for $178,400, partly because he thought it would be a good investment and partly to help a friend. [...] Allen claims his longtime friend convinced him to use his good credit in March 2006 to purchase the Northeast Austin home. His friend's wife, Lynn Harper-Armstrong, would be responsible for leasing the property, collecting rent, and paying the mortgage. In return, Allen and a co-buyer, Penny Coles, would split $3,000 at closing.

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• Coles purchased a total of three homes under a written agreement with Harper-Armstrong. [...] The agreement stated Harper would be responsible for keeping the mortgage account current at all times. But 17 months after closing on 2000 Short Summer Drive, the mortgage company informed both Coles and Allen received notices that no payments had been made.

For more, see Home deal leaves investors facing foreclosure (no longer available online).