I Think This Is Mortgage Fraud
I put in a loan application package with a mortgage broker that I haven't used before, (found on the lenders tab here at TCI). The broker advised that we only list on the application REOwned that is reported on credit report., (we own about 6 properties that are privately financed and not reported to credit reporting agencies).
We are getting ready to close the deal, (haven't signed any loan doc's yet), and it has occured to me, yes, this much later - that this ommission could be considered mortgage fraud. I have arranged to have a back-up private money loan ready to go.
My gut instinct says I should pass on this loan. One purchase that I can finance otherwise is not worth the risk of possibly commiting fraud. Am I legit in my concern or am I overreacting?
Bring it on -
Gracias,
Noel
[addsig]
Noel,
Just transfer the six private funded properties to a family trust. That cleans the act.
Frankly just between us small children I doubt if the lender would even bother about the six especialy if payments are made as per schedule. I can think of several defenses. But why bother, just record the deed and thats the end of it.
Cheers Lucius
I have seen it done and i have done the same thing myself. The only real problem is some lenders do not want you to have more than 7 properties or loans etc. These may be govt regulated too and you may be subject to Fed rules and regs. I do not think the FBI will be following you making sure you have no more than 7 loans at one time and it is really of small concern. If anything were to happen the Broker could lose his license. This bus is hard enough without worrying about something like this. Sub2 are illegal to some folks and you are committing fraud and are going to sub2 jail and burn for eternal damnation,
Good LUCK and Thank You
Hope this helps some
Ted Jr
OOOps, I just remember'd a transaction some time ago.
Client owned some 75 single family houses scattered tastfully around the worst part of Watts, Willoughby here in Los Angeles. An area prone to constant and continual gun fire. A child attending school in the area will have to have at least six gang signs just to get thru the queries on the last block to school. I mean you dont just carry a piece, you have to have a backup on each leg.
One is not properly dressed without a bullet proof vest now being made in some really tastefull colors. Oh yes the extra extension on the lower front is now mandatory, called by those who know their history as the "Cod Piece" Lovely area. Some talk of contacting Osama to offer it as a training ground for those who really want to learn Urban Guerilla Warfare.
Anyhow he buys a 60 unit in the wilds of Beverlywood. You know near Beverly Hills. Well he has to get rid of the slummy little houses. Great income but well you know how banks feel. So we set up this Trust, fully documented and we transfer all of the properties into the trust and then the trust sets up an income stream for him to receive a net check each month. Now that he declares as income.
They make him the loan, love the simplified income stream and only ask the name of the Trust. Ah the workings of the bankers mind, it is indeed a puzzlement.
I hope all of this is helpful.
Cheers Lucius
Then you can tell everone you have a "trust fund" Isnt that cool!!
Plopping props into a trust. So simple. I could just give you a big, fat kiss, Lucius.
And I worry no more about the dreaded "F" word.
Ciao,
Noel
[addsig]