I regularly receive emails from people asking for my assistance with short sales, loan modifications, etc. Since I'm a "real" loss mitigator and not one of those blue light special "I bought my *certification* with $1500 and a class" variety ... but I digress :)
Today I get this email:
hi, I'm just now hearing about short sales and am completely confused. I'm not at all educated in all of the terminology and rules and laws of real estate. In a nutshell: I have a condo with under $100k left on it. My father is on the title with me. He would like to buy it but he doesn't necessarily have to. I have no clue where to physically start. I also am not sure what this will do to my credit report as I am unemployed for a couple more months. Twist: The condo was purchased with plans to rent it out (although that's not what we told the bank-I was to live there), we got it at a low rate fixed for 5 years(almost up). Now they somehow know that I don't live there-the fact that I'm now living out of state must have tipped them off-and they won't let me refinance due to it being a rental. My father who was handling the condo is currently in Iraq and wanted me to research short sales. Your video was the first I saw after reading a few websites. Who exactly do I need to contact in preparation, what will this cost me, do I need to go back to the state the condo is in, will this kill my credit rating, and what else am I over looking? Will this be worse than just selling the condo to my dad? If you have time, i'd appreciate any advice you can give.
Well Emillio, you're lucky you're not in jail, yet, for committing mortgage fraud. Glad to see you're caught but look what you've done to the economy surrounding your condo. Yes, Emilio, your credit will stink because you've already missed payments. If I were the bank I'd call it due since you violated the terms of the loan agreement by lying on your application.
Why don't you try Googling "sentenced for mortgage fraud" and get back to me.
What I am saying is that all of this mess is not atributable to even the lowest of the low mortgage lenders including Homeowners, Argent (AmeriQuest), ABN Amro, and other country wide lenders. Some heads still need to roll.
Let's revisit the types of mortgage fraud:
Fraud for Profit - flat out I'm stealing money
Fraud for Shelter - I can't see any other way to steal a home
Fraud for Criminal Behavior - I need some place to grow my weed
Fraud for profit - top two methods: false statements on application (I intend to occupy this home as my primary residence) or providing false documentation to prove false statement on the application
Have you heard? Black Belt Real Estate Training is coming soon.
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I started writing on Active Rain in 2006 when I was representing the mortgage industry. I am no longer in that industry and many of the older posts contain outdated information. Please do not contact me for LENDING or MORTGAGE questions but rather contact a licensed mortgage professional from your area. I have always been in marketing and branding and that is still what I do. Thanks for reading!