mortgage fraud: Mortgage Fraud Schemes - Beware!!
- 11/25/08 04:00 AM
I have been hearing more and more stories of buyers approaching sellers with offers that include "Cash-Back". Why is this white collar crime and mortgage fraud making a re-occurrence? - Buyers are taking advantage of ‘desperate' sellers hoping they will cross the line to do anything to sell a home. Let me be clear that it is illegal. Period! In fact, on June 19th, the FBI charged More Than 400 Defendants Charged for Roles in Mortgage Fraud Schemes as Part of Operation "Malicious Mortgage. A cash-back transaction scenario is where a buy pays more than a home is worth with … (0 comments)
mortgage fraud: Cash-back Scenario - Buyer Beware!
- 11/07/08 02:20 AM
Here is a Cash-back Scenario" Homeowner lists home for $320K Buyer approaches seller and offers to pay$400K and ask for $80K extra paid back to the buyer after and outside the escrow. Seller agrees as still receives the $320K net they had hoped Buyer is able to put down 20% on $400K ($80K) and receive a 30-year fixed mortgage with no PMI (private mortgage insurance) Buyer then receives the $80K back after the close of escrow; thus, getting a fixed rate, no PMI mortgage with no money down. other situations are buyers putting down $40K and getting $40K cash back in … (0 comments)
I have been hearing more and more stories of buyers approaching sellers with offers that include "Cash-Back". Why is this white collar crime and mortgage fraud making a re-occurrence? - Buyers are taking advantage of ‘desperate' sellers hoping they will cross the line to do anything to sell a home.
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