Posted by Tony-VA on July 10, 2002 at 08:59:05:
Chances are if you have to ask “is this legal” to falsly overstate the sales price to a bank … you are in the parameters of Loan Fraud. Do this against a Federal Bank and you have a Federal Offense which means jail time with little to no credit for good behavior.
Keep business above board. Work with the seller. Maybe they can take a second to lower your banks first loan to value position.