using equity as down payment - Posted by evette taylor

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,

Ed Garcia

using equity as down payment - Posted by evette taylor

Posted by evette taylor on December 29, 2000 at 13:07:12:

i was told that I could use the equity in the home i want to purchase as a down payment. the seller is willing to take less then the house is worth although he is listing it at the higher price. the lender said i need to have the house appraise for the higher amount, then have seller take less and the equity could be used as my down payment since my husband and i don’t have a down payment. is this possible?