Thursday, September 06, 2007

Mortgage Fraud = Federal Time

I just read a post over at Peter Toner's site and found his comments, as usual spot on. Folks have asked me to do all kinds of things to "help them buy a home" in the last 22 years. Frankly, this is the only way I make a living and so I will not risk my license with something that steps outside the box. Some are offering rebates or discounts (not all are illegal) or other incentives to gain your business. I have always stayed away from it. Read on...

WHY...because every deal I have done has had some kind of US Government involvement, either through FHA, VA, FNMA, GNMA, etc. Even a cash deal has US dollars involved. Well that is not a big deal right? Yeah, it is! Government involvement + Fraud = hard time at one of uncles not so friendly country clubs. And you, the consuming public, while less likely to be targeted than those in the professions, can also be held accountable. So, if I offer to give you, a buyer, a $1,000.00 rebate after closing but I do so to acquire your business, through advertising this fact, and I do not tell the lender that you are getting it, there is a case for loan fraud. It could be that simple. Now, if I chose to give it to you after the closing, and there was no trail of offering it, that is a different story. The lender cannot give anyone anything without disclosing it, before, after or durring the transaction. All should check with compenant legal counsel on this.

The key is the "INCENTIVE PAID TO DO BUSINESS". When you make a decision based upon an offer of an "incentive" your antenna should start to tingle. Just be careful. Anyone who has a concern about this needs to consult with an attorney who knows and understands the words "Federal Loan Fraud". I know a good attorney and will happily make the referral.

The old saying "If it seems to be too good to be true, it probably is" goes right next to "everyone is doing it". Be careful out there! If you need a good Denver area real estate broker drop me a note.

So, if this kind of service could be valuable to you or your friends, put my 22 years of experience to work for you, learning about your new home town! Whether it is Highlands Ranch, Lone Tree, Littleton, Castle Rock, Centennial, Englewood, Parker, Elizabeth, Larkspur, Franktown, Kiowa, or anywhere in metro Denver Colorado, we offer real estate advice, properties for sale, multiple listing service, property listings, mls, all available at Drop me a note to

No comments: