La Jolla Real Estate, Del Mar Homes, Carmel Valley, University City and Downtown San Diego real estate,
homes and condos for sale in California - Ruth Mills & the Mills Team, REALTOR.






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 NOV. 27, 2006
HOME LOAN FRAUD IS UP
Be careful of buyers writing an offer over the price ($50,000-100,000) then asking for it as a credit to the mortgage representative, to a construction company or to the agent.

They will try to persuade the seller by saying the net income will be the same so they should not care how it is paid as long as they net the same amount. The kick back is not written clearly in the offer.


It is a legal issue if a buyer submits false information to a lender to obtain a loan on a home. When a loan goes bad, the mortgage company will pursue all the participants in the transaction. They usually cannot locate the buyer's representative so they will come after the seller and seller's agent.

If you want to move forward with an offer over the price with a large credit, you should seek legal counsel. Another suggestion is to always spell out all the terms very clearly in the contract. List the asking price and the amount that is being offered over the asking price, how much credit will be paid and who will receive the credit. Be sure to make the sale contingent on the underwriter accepting/approving these terms.

The buyer's agent will try to avoid spelling out the full disclosure in the contract. Remember, if they balk at the idea of full disclosure then it is probably a scheme.

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