|
madcashflow
Musician, Investor, Broker
|
Is this LENDER FRAUD?
Thursday, October 18 2007 02:05 PM
IS THIS LENDER FRAUD? This transaction is in California.
I am helping a client who is having financial problems short sale her property. We already have a buyer in place. The problem is that the buyer is her uncle. He (the buyer) has the same last name as she (the seller) does. The buyer is also currently the tenant and has been making the mortgage payments for the last 2 years.
I would like to help my client but I don't want to help get her into more problems that she is already in.
1. Would this transaction be lender fraud?
2. If so, how could we arrange this deal so that it is not lender fraud?
Any ideas or references whom I may contact would highly be appreciated!!
I THANK YOU IN ADVANCE FOR YOUR TIME AND HELP!
David
_________________________
Contacts make contracts!
REPLY
|
|
Marty Couch
Investor
|
Re:Is this LENDER FRAUD?
Thursday, October 18 2007 05:27 PM
Hi David,
Well, based on the information you have provided I have not found anything in my research or run across anything that indicates this is mortgage fraud. The fact that the buyer and seller are related does not seem to negate the ability for a short sale to be legal. There are a few concerns in this transaction however:
1) The lender who is agreeing to the short sale may require an ?arms length? transaction in which case the uncle would not be able to buy. If the fact that he is the ultimate buyer were hidden from the short sale lender, you would be treading in the mortgage fraud area.
2) The new lender may also require an ?arms length? transaction in which case the above would also apply to them.
3) If the uncle is responsible for paying now and he is not (assuming that is the reason the property is in foreclosure) then will he have the ability to pay on the new loan? If he will not and the application is ?tweaked? so that it appears he can, this would cross the line in to mortgage fraud.
I hope this information helps?
Marty Couch
http://www.PPLChicago.com
REPLY
|
