Sunday, February 21, 2010

Is Your Bank Commiting Mortgage Fraud? READ THIS!

There is another type of mortgage fraud out there that is actually being committed by the biggest banks. People who are thinking of getting involved in a short sale need to be aware.
It seems that many real estate agents are starting to make complaints about dealing with the second lien holders in a short sale transaction. If someone is trying to get their bank to agree to a short sale but they have a second mortgage on their house, then negotiations must also be made with the holder of the second lien.

Currently this applies to many, many people. Of course if the second lien holder won’t agree to anything and it goes into foreclosure then the first bank gets the house and the second lien holder gets nothing. So to get the second lien holder to play ball the first will throw them a bone. And why wouldn’t that take it, foreclosure means they get zilch.

But the second mortgage holder is not being given very much most of the time. Some are asking for some “money on the side” from the real estate agents or the buyers of the property. They are asking for cash that is not listed on the HUD settlement statement so that the first lien holder does not know. If the money is not paid they will kill the deal by not agreeing to drop their lien hold. This is ILLEGAL.

At least 200 agents have said that these requests were made by representatives of Citi Mortgage, JP Morgan Chase, Bank of America and other large banks. These real estate agents don’t want to go on record because they need these banks to work with them.

This really needs to go under investigation, of course it seems the banking industry needs to be investigated for pretty much everything now-a-days.




For more information or to search the MLS just like the real estate agents do please visit our website at http://www.theriangroup.com/

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