Posted by Ed Garcia on December 30, 2000 at 21:38:21:
Yes it possible, but it’s also illegal. What you, the seller, and the broker are doing is, conspiring to defraud a lender. You’re setting up a phony second to show down payment.
Sorry Evette, you asked the question, so I had to give you the correct answer. Anything else would be justification. Now that I’ve told you this, I’d also like to tell you that people do this all of the time. But I want you to know that if you get caught, it’s good bye Charlie.
By the way the most common way an individual gets caught, is because of a broker who does this type of foul play, time, after time, after time, after time, until they get caught.
When ever you have a broker suggest this, beware that some day that broker is going to have a disgruntled customer, who will blow the whistle. When they investigate, they will try to find out of this is a one-time incident or an M/O (modus operandi). They will then begin what I call, a head hunt.
Evette, I like to wish you and your family a Happy New Year,