Posted by Nate(DC) on July 15, 2002 at 23:09:47:
The difference is, lender fraud is a federal crime, and if you commit it and are caught, you could go to jail, even if you had “good intentions”. Besides, I do not believe you could actually commit fraud with “good intentions”. All you would be doing is justifying your behavior to yourself to make yourself feel better.
NT
You can’t answer these questions–$500-- - Posted by Shawn Knowles
Posted by Shawn Knowles on July 14, 2002 at 18:10:54:
I thought instead of finding out for myself I would try something new and leave it up to you guys:
Is it possible to have a co signor sign on a loan, then have him quit claim deed the interest in the property, does it also realese any responsibility on the mortgage–or is it just the property.
When having a seller carry back a 2nd, doesn’t the 2nd have to be paid before transfer of property to new owner?
I was told by a lender that I could obtain a concurrent 125% loan at close, take cash back out of purchase then lease option home to tenant/buyer to create lot’s of money at closing. Will this work for the first home or is there a better way----maybe purchasing home at 85% to fair market value then take out loan for 100% and cash out at close the difference or if need be have the seller cut back a check for the difference.
Re: You can’t answer these questions–$500-- - Posted by Ed Garcia
Posted by Ed Garcia on July 14, 2002 at 23:52:56:
Shawn,
Here are your questions and the answers to them.
QUESTION:
ANSWER:
Yes, of course it’s possible to have a co-signer on a loan. But once they are on the loan, even though you have had them quit claim to you, they are still on the loan and are liable for it.
QUESTION:
ANSWER:
NO. the property can be transferred to the new owner and the second will still be in place. Liens on a property, follow the property. However 1st and 2nds as well can be written none assumable and require pay off in the event of title transfer.
QUESTION:
ANSWER:
You weren’t told what you have said by a lender. You were told what you were told by a Mortgage broker, who doesn’t know what he’s talking about. Just think about what you’ve said. In doing what you have suggested, it is a misrepresentation to the lender and is considered lender fraud. The lender would not have made the loan under the circumstances had they knew what you were going to do.
Ed Garcia
Re: You can’t answer these questions–$500-- - Posted by JoeS
Posted by JoeS on July 15, 2002 at 07:11:57:
It is scenarios like #3 suggested by a mortgage broker that has led to loan fraud…the honest investors, brokers, appraisers, Title officers and attorneys have to suffer because of morons like the ome who suggested that!! It’s too bad that this kind of advice affects new people all too often.
Re: You can’t answer these questions–$500-- - Posted by Shawn Knowles
Posted by Shawn Knowles on July 15, 2002 at 19:19:06:
You guys took number 3 way out of context and it was merely a question?
The purpose of a question is to find an answer, and now I know that it can’t be done like that I will not pursue that course of action.
As far as lender fraud is concerned what’s the difference…if my intentions are good, and as long as I don’t lie in the process…
I strongly believe in being honest even if it hurts me more than it helps me in every area of my life
Because what goes around comes around and as long as you diffuse the situation bedore it ever comes around you will not get hit with the strong momentum it picks up when it goes around.