Jackie, Is this fraudulent?

Posted in Creative Real Estate Discussions
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  • Kimberly Johnson
    August 24, 2018 at 9:31 am
    Kimberly Johnson

    A friend is helping her mother sell her house and it is listed with a broker. The house has a reverse mortgage loan, needs mostly cosmetic work and is not a deal but is in a desirable location near the ocean.

    They are about to close – the buyer is approved for loan and is asking for them to up the price by $5k and credit it back to him at closing so he can use it for repairs. Is this fraud? Seems wrong to me…

    Thanks.
    Kimberly

    Jackie Lange
    August 24, 2018 at 9:36 am
    Jackie Lange

    AT closing, everyone is required by the lender to sign documents that say there are no under the table agreements or money changing hands which are not revealed on the HUD-1. If they disclose that the $5,000 is being paid outside of closing, then it is OK. If they pay $5k outside of closing and do not disclose it, then the lender could consider it fraud. DISCLOSE DISCLOSE DISCLOSE

    Kimberly Johnson
    August 24, 2018 at 11:00 am
    Kimberly Johnson

    Thank you Jackie. I will tell her she has to make sure the monet is disclosed. Good to know in the future.

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