Is This Normal Or Is It Fraud? - Posted by TC

import · February 2, 2000, 11:02pm

Posted by TC on February 03, 2000 at 22:12:53:

Thanks for your response Bill.Actually the girl has a preapproval.I spoke with the title company today and also the lender.I will let them hash out the details and if they say it’s on the up and up I guess I can be pretty safe to go with it.When this is closed I’ll let you guys know.Maybe I’ll post a success story.

import · February 2, 2000, 11:02pm

Posted by TC on February 03, 2000 at 24:02:11:

I have a buyer on a house that brought a friend with her to do the contract.The friend says in order to make this deal work that we need to raise the price a little and then have in the contract that I pay the buyers closing cost and this is supposed to look like she has put her 3% down (FHA first time buyer).She also says this will get her in with no money down.If I do this can it backlash with some legal reprecussions?

import · February 3, 2000, 7:41pm

Re: Is This Normal Or Is It Fraud? - Posted by pros77

Posted by pros77 on February 03, 2000 at 20:41:57:

I agree with tc, some things not right with this deal.
ask to see a pre-aproval and loan amount to secure the deal. you want to pay close attention to the loan amount (%)LTV

import · February 3, 2000, 7:22pm

Re: Is This Normal Or Is It Fraud? - Posted by StephenOR

Posted by StephenOR on February 03, 2000 at 20:22:14:

I’ve done lots of deals like this. One of the best ways is via the Neimiah program. A better program is called the HART program. It profits $600 per deal instead of one point. If the buyer has good credit, you can legally and ethically do this deal all day long.

import · February 3, 2000, 12:11pm

Re: Is This Normal Or Is It Fraud? - Posted by Bill K. - FL

Posted by Bill K. - FL on February 03, 2000 at 13:11:37:

This so called friend doesn’t know what she is talking about. FHA utilizes specific formulas in determining the amount of the loan. This takes into account any seller paid closing costs on behalf of the buyer. They want to see a down payment coming from the buyer period. Any other way to do this would have to be outside of closing and that my friend is fraudulent. If this person doesn’t have any money their credit probably stinks too. Be wary of this one.

import · February 3, 2000, 6:49am

Re: Is This Normal Or Is It Fraud? - Posted by Mark-NC

Posted by Mark-NC on February 03, 2000 at 07:49:36:

TC,
Yes, in the lenders eyes it will be fraud. Another concern I would have is that the lender may proof and source the 3% down so they may not be able to do it anyway if they don’t have the money. Some were on the settelment statement it is going to show that the buyer brought the 3% to closing or to the fact that you already have it.

Mark