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Mortgage and Lending with First Priority Financial

It's a great time to buy, and certainly the temptation is out there to fool lenders.   I have heard rumors that this was going on and even had a past client call me inquiring about doing it, and I completely backed away.  Thank goodness because participating in this new form of fraud could really get realtors, lenders and homeowners in major trouble.

 Yes, it's the latest temptation.    Rent out your current home, and buy a new home, bigger, better and cheaper, and let the old one foreclose.  However, lenders have caught on to the game.  Now if you are looking to rent out your home and the homeowner is upside down on the mortgage or the payment is scheduled to adjust upward significantly, lenders are taking several looks.   Not only are will they be looking for a rental agreement, but they may want a copy of the cancelled deposit check, and possibly 24 months history of being a landlord.

And if the homeowner walks away from the payments and let's the old home foreclose, it's FRAUD!!!!  

Robert L. Brown
www.mrbrownsellsgr.com - Grand Rapids, MI
Grand Rapids Real Estate Bellabay Realty, West Mic

Some call them ingenious and i call them very very stupid. Everyone needs to be diligent.

Apr 13, 2010 05:27 AM