Blogging Broker

…its the path of least resistance.

In my opinion the Federal Government and the loan industry would rather renegotiate all the funny money loans done over the last several years rather than investigate them — because if they did investigate they would find so many  perpetrators of fraud our prisons couldnt hold them all. 

DON’T LIE ON YOUR LOAN APPLICATION 

A broker called me this morning and asked me about doing a loan for guy he knows.   He recently sold two homes to this guy’s mother and now this guy would like my broker/friend to help him refinance his house.  He already has two homes financed under the auspices of being the owner/occupant and he wants to refinance another one as Owner/Occupant to get a lower rate.

The broker who did the other two loans for him tells him this is NO PROBLEM. However this guy would like my broker/friend (who sold his mom the two homes) to do the loan for him.  My friend asked my advice.

I told him its OK  to  say that he is going to occupy the property -even though he isn’t - so long as he and client are willing to go to prison.  

If you need to finance or refinance don’t even think about making false statements on your loan application.  Read the following: Don’t Be A Victim Of Loan Fraud

11. Be honest about your intention to occupy the house. Stating that you plan to live there when, in fact, you are not (because you intend to rent the house to someone else or fix it up and resell it) violates federal law and is a crime.

© Randy “Lazarus” McAtee 2007 
     Owner/Broker -  Lazarus Realty