Me and a friend of mine have decided to buy a house on foreclosure. The deal seems to be good: the house was bought in 2006 for $635,000, is now for sale by the bank for $350,000, and its value today is arround $550,00.
My friend gives half the money in cash, and I intended to get a mortgage for the rest ($175,000). I have good credit and the bank approved.
But: the bank says that the money my friend gives does not count here, and I have to take the mortgage for the full selling price! And since I need only half of it, the bank wants to see that the rest of the money comes FROM MY POCKET, otherwise - no deal.
Any creative idea how to solve this?