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Any thoughts about recent reports of lender fraud?

By David R. Fuller

Real Estate Agent with RE/MAX

January 26, 2007 11:18 AM

In a recent news paper article there were reports of rampant lender fraud with regards to "Cash at Close" transactions. They say it's going to make the savings and loan scandal dwarf in comparision. Any thoughts? The report ran in Arizona but it may apply to other states as well. Please respond with any specific stories or thoughts.

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Charles Blumenkehl

Blue Asset Management - Wayne, NJ

Unortunately, when real estate markets slow, lender fraud historically increases.

Jan 26, 2007 11:32 AM

Renée Donohue~Home Photography

Savvy Home Pix - Allegan, MI

Western Michigan Real Estate Photographer

Every listing I have had in the last year I have been asked to do a cash back at close. One listing I had this summer had a multiple offer situation where two of the offers were 100% loans with cash back at close. I don't care if it is $50, I always advise my seller to counter "will give xxx back at close as long as lender allows this and it is disclosed on the HUD-1 at close"

Jan 26, 2007 01:06 PM