There are still some real estate agents and investors still trying to take advantage of lenders. I had somebody call me and ask me about being able to get $20,000 back in cash at closing on a house that was selling for $30,000. They are still trying to commit mortgage fraud.
Here are some examples of mortgage fraud
- Getting money back from the real estate agent, or seller at closing that is not disclosed on the the HUD settlement statement. If a seller or real estate agent tells you the will give you $10,000 cash back at closing and nobody will know about it, that is most likely fraud.
- If homes in the area are selling for a much lower price and the Loan officer, or the selling agent is going to “fix the appraisal”. “Stretching an appraisal or inflating a value of a home is fraudulent
- Falsifying your W-2’s, tax returns, Verification of employment, bank statements, or pay stubs is mortgage fraud and could land you in jail.
- Having a appraiser “turn a blind eye” to the home’s damages or missing items like the furnace, kitchen cabinets, or hot water heater.
My advice to you is to walk away from the deal or the home if somebody wants you to do something illegal. It is not worth going to jail.
May you laugh today at a good joke, and smile with a friend.
Your Metro Detroit real estate specialist