Be Careful & Stay Legal

That was an eye opener and I really had to take a step back after reading those articles. I am glad you posted that because there are so many schemes out there its not hard to get caught up in one them without even knowing but again thank for the great information.

There is NOTHING wrong with cash back at closing.

Here is the problem (from the article):

"submitting false loan applications"

"False details of income and assets were supplied on the 1003’s (applications)."

Just dont do this.

If you aren't going to live in the property, dont say you will.

If you dont make X,000 per month, dont say you do.

VERY simple...

Thank you soooo much for that update rodske88. Thank you sooo much wmark1963 for clarifying what we should really be aware of and not practice . This was truly an eye opener for those of us who have the right intentions.

Thank you

Just a few personal examples I would like to use to dirve home this point. Example one. I was introduced to a real estate deal that was supposed to give me a large return. I met the investors offering me the deal at a very nice brand new home and discussed how it worked. They told me all I needed to do is do on the loan application is claim it as a primary residence. Needless to say I did not go through with the deal. Six months later I see one of the investor I had met with on the news because he was involved in a big loan fraud scam.
Example two. I was talking to a friend that had an investment property that he had purchased through a friend in which he lost to foreclosure. He told me that the mortgage company that he went through rushed them through the process and at closing rushed them through the signing of the contracts. They later went through the loan information that the mortgage company had filled out for them and it was all false information in which they had qualified for the loan with.
In summary don't let anyone rush you into anything, and review all the documention that you sign to make sure it is all correct. As other have stated you have to make the amount of money you say you do and you have to have the assests that you say you do, and don't let any one you are working with tell you that you can falsify information.

That's why I stay out of the monetary end of the transaction, especially as a licensed agent I have to be cautious. I will accompany my clients when they're mortgage shopping, but put on the record that I'm only there to clarify any questions that the loan officer/broker may not be able to answer clearly (in plain language); but that's as far as I go other than giving them a list of people to choose from and state they can use any of the ones listed or select one of their own. That way, they can't say "you told me to..." "Oh no I didn't!"

But unfortunately, I see alot of questionable activity like in the articles.