The "gift of equity" and the "loose fly"!!

By
Real Estate Broker/Owner with Tutas Towne Realty, Inc and Garden Views Realty, LLC BK607690

 Earlier today, I received a call from the Realtor/Mortgage Broker(RMB) on one of my pending deals. I was kind of expecting it but was hoping it would happen sooner rather than later. You see when this guy called me about a month ago, to let me know he was sending over an offer for one of my listing, the caller ID on my cell phone read FRAUD!

When I was speaking with him I couldn't for the life of me remember why I had his number programmed in as FRAUD! Anyway, since it was an office number, I decided to give this guy the benefit of a doubt and we negotiated an acceptable deal with my Seller. I did all of my homework and actually had one of my trusted mortgage brokers review the Buyer's situation. All looked good to go.

The Buyer was getting a loan of 100% through Country Wide with the Seller paying 3% towards closing costs. Anyway, to make a long story short, CW denied the loan yesterday. Today, the Realtor/Mortgage Broker (RMB) called to let me know we could still get this closed if the Seller was willing to do a "gift of equity". It seems the appraisal came back at $187,000 and the agreed purchase price is $150,000. So RMB's bright idea was to inflate the contract to $180,000 and have the Seller write a letter "gifting" 20% of his "equity" to the Buyer.

RMB assured me this was perfectly legal as long as the Seller was a family member of the Buyer. Well OK then. Not only we will inflate the purchase price by 20% but we will also have the Seller lie and say he is a family member!!

Nope can't do that. The property is back on the market and NOW I remember why his phone number was programmed in as FRAUD! I just changed it by the way to FRAUD2! Next time I'll remember.

A little later today I received a call from the REALTOR® on one of my other transactions. This has been a very difficult transaction as the first Lender went out of business and we had to change Lenders about a month ago. Also, we are working with a Down Payment Assistance Program who is granting the Buyer $20,000. After providing them with tons of documentation we finally were within about 10 days of getting this deal closed.

The REALTOR® says, "The buyer has decided not to move forward with the closing." I say, "What the......!!!". The REALTOR® explained to me that Mrs. Buyer came home from work early yesterday and caught Mr. Buyer in bed with.........!!! Well just use your imagination on this one. Let's just say they ain't closing on this house. They will be meeting with an Attorney but it won't be to discuss real estate!

The moral of the first story is: "Don't ask Broker Bryant and his Sellers to commit FRAUD! It ain't happenin' on my watch."

The moral of the second story is: "Please keep your fly zipped until AFTER you get your house!"

A day in the life of a listing Broker. How was your day?

Copyright © 2007 Broker Bryant Real Estate Ramblings | All Rights Reserved

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The BIO for Bryant Tutas

 

 Tutas Towne Realty, Inc handles Florida real estate sales, Florida short sales, Florida strategic short sales, Florida pre-foreclosure sales, Florida foreclosures in Kissimmee Florida Short Sales, Davenport Florida Short Sales, Haines City Florida Short Sales, Poinciana Florida Short Sales, Solivita Florida Short Sales,  Orlando Florida Short Sales, Celebration Florida Short Sales, Windermere Florida Short Sales. Serving all of Polk, Osceola and Orange Counties Florida. Florida Short Sale Broker. Short Sale Florida.

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Florida Osceola County Poinciana
Tags:
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Rainer
40,396
Frank Verna
Frank Realty - Jupiter, FL
Broker / Owner
I'm afraid, very, very, afraid. LOL love the outfit!
Dec 06, 2007 12:07 AM #34
Rainer
68,842
Judy Tuscano
Prudential Verani Realty - Nottingham, NH
NH Real Estate Professional

Wow BB what a day for you. I have had some mortgage brokers like this in my experience and the deal never closes.

As far as the hubby with his pants unzipped - wifey is better off finding out before she is in debt for half the house and has to spend more money to fight in court to get it away from him.

Dec 06, 2007 12:35 AM #35
Rainer
165,557
Dan Forbes
Bradenton, FL

BB - Mortgage Fraud is as big as ever in this challenging market.  Doesn't it feel good to do the right thing.

The unzipped fly story is crazy.  This guy is in a lot of trouble, and probably wishes he only committed mortgage fraud.

Dec 06, 2007 01:18 AM #36
Rainmaker
189,486
Herb Hamilton
RE/MAX Preferred Inc. Realtors - Portland, OR
Real Estate Broker ,CDPE, Downtown Portland

BB : I just can not figure out why MB's think that this type of funding is okay. With all of the overt conversations and news play mortgage fraud gets, it just astounds me that someone would call you with this out and out blatant attempt at fraud.

Sorry about your second sale. Unless the Buyer has no other outs though I would keep their feet to the fire. After all most couples do finally work things out even in matters of infidelity.

Dec 06, 2007 02:50 AM #37
Rainmaker
1,048,784
Bill Gassett
RE/MAX Executive Realty - Hopkinton, MA
Metrowest Massachusetts Real Estate
BB - Two very interesting stories. It sounds like there is a lot of that goes on down in your market. I don't see much of that where I am most likely due to prices differences in our markets. It amazes me that mortgage brokers are willingto risk their license like that over one measle deal - JUST CRAZY!
Dec 06, 2007 03:23 AM #38
Rainmaker
105,533
Josette Skilling
Keller Williams Capital Properties - Bethesda, MD
What a fun day!  Fraud and infidelity...  sounds like daytime TV.
Dec 06, 2007 03:38 AM #39
Rainmaker
123,462
Rebecca Savitski
BSR Real Estate Group - Cary, NC
NC Real Estate Listings

I am not surprised just another day in the life of any practicing real estate broker.

 

Dec 06, 2007 04:31 AM #40
Rainer
37,637
Karl Burger
ERA Beach Ball Realty - Pensacola, FL
Pensacola Real Estate News
Great post. I wrote a post on my blog about what not to do after you are approved for a loan. I never thought about infidelity as being something I should mention. Maybe I should go back and edit that post, just in case it might save a deal or 2.
Dec 06, 2007 06:00 AM #41
Rainmaker
34,772
Jon Mitchell
Classic Property Management - Santa Clarita, CA
Ah!!  Yet another victim of the "Zipper-Gate" scandal huh?  I haven't encountered that one yet, but if I do I will think of you!  LOL!
Dec 06, 2007 08:24 AM #42
Ambassador
2,079,869
Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional
Charles Rutenberg Realty - Clearwater, FL
Palm Harbor, Dunedin, Clearwater, Safety Harbor
that photo is just too much!!!!!!!!!!!!! hehehe
Dec 06, 2007 08:43 AM #43
Rainer
62,831
Allen C. Wright
RealtyU - Aliso Viejo, CA
NS, AHS, REPS
I am voting for Moral Number 2 ... But at least that is a better reason for not buying a home than the number of buyers that buy new cars before closing thinking that the loan company has already pulled their credit and won't check.
Dec 06, 2007 10:56 AM #44
Rainmaker
273,520
Wayne B. Pruner
Oregon First - Tigard, OR
Tigard Oregon Homes for Sale, Realtor, GRI
Great Story! Sounds like a real soap opera down there.
Dec 06, 2007 04:19 PM #45
Ambassador
1,090,772
Celeste "SALLY" Cheeseman
Liberty Homes - Mililani, HI
(RA) AHWD CRS ePRO OAHU HAWAII REAL ESTATE
Wow...and what a day you had.... Two for the price of one....lol....Fraud and zippers. I don't think either one of them go together....
Dec 06, 2007 05:19 PM #46
Rainmaker
118,730
Kathleen Vetrano
RE/MAX Gateway - Falls Church, VA
Helping YOU Achieve YOUR Dreams
Hey Bryant, now who was it that said this job was easy??  My day went well...but we do all have those days, perhaps not to that extreme.  Thanks for sharing.
Dec 06, 2007 06:40 PM #47
Rainmaker
453,651
Allison Stewart
St.Cloud Homes - Saint Cloud, FL
St. Cloud Fl Realtor, Osceola County Real Estate 407-616-9904

BB

Excellent post.  It never ceases to amaze me how some individuals feel the need to re-invent Real Estate. Hope he finds a nice cozy rock to crawl under.

Dec 06, 2007 11:26 PM #48
Ambassador
628,186
Jeanean Gendron
The Address Realty - Redding, CA
Specializing in Selling Unique Properties
Bryant, I agree with TLW...to confusing to even consider. The photo is killer. The title is too good which you always do and this market has too much silly stuff going on. Your comment on how many options are available to the buyer is the key point. Thanks for a good post and the great comments. Always a joy to visit!
Dec 07, 2007 01:57 AM #49
Rainer
155,621
R. B. "Bob" Mitchell - Loan Officer Raleigh/Durham
Bank of England (NMLS#418481) - Raleigh, NC
Bob Mitchell (NMLS#1046286)

Bryant:  It's amazing that even with the glare of the spot light being leveled at the mortgage and real estate industries that this guy would try that.  Wild!

Sorry to hear about your other deal.  I had one like that happen to me...as a matter of fact, I'm going to write a post about it....

 

Bob Mitchell

ValueList Real Estate Services, Inc. 

Dec 07, 2007 03:45 AM #50
Rainmaker
1,142,060
Bryant Tutas
Tutas Towne Realty, Inc and Garden Views Realty, LLC - Winter Garden, FL
Selling Florida one home at a time

Howdy folks!! I guess I have been a bad blog host. Sorry about that. Been trying to squeeze in work and blogging between watching TLW unpack. :)

Ok I love "zippergate" very funny!!

I guess our disclosures now need to read:

  1. Don't spend any money.
  2. Don't run up your credit cards.
  3. Don't buy a car, boat etc....
  4. And please keep the zipper up.

Hey I just posted a follow up to this one.

 http://activerain.com/blogsview/299621/Be-ignorant-or-be

Dec 07, 2007 08:37 AM #51
Ambassador
3,989,000
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

You DO lead an interesting real estate life, BB. The Poinciana Soap Opera.

Jeff

Dec 07, 2007 01:49 PM #52
Rainer
86,739
asdf zcxv
Keller Williams Realty - Ann Arbor, MI
Ann Arbor Area Real Estate

Okay now this is a great post and I'm glad I have found it.  I love many parts to this blog and the fraud phone number.  What an idea.  Just a note to self...when this guy calls think fraud.

I personally thought this blog was great.  Thanks for sharing; we learn from the difficult times as well. 

Oh and the story about the zipper....oh you are too funny! 

 

Jan 05, 2008 11:15 PM #53
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