Banks Involvement in Promissory Notes?

[Sam Simones]

Classic apology for asking something that I’m sure has been asked before, but I can’t find it so that’s okay. 

Say a friend is selling you their property. The appraised value is 1,354,000 and he agrees to sell it for 1,254,000. I’m young without cash or equity and so minimizing down payment is crucial.

Could we list the sales price of 1,354,000 to the bank and carry a promissory note between ourselves for $100,000 (the difference between the agreed upon sales price and the sales price on the offer to purchase etc), and in the promissory note in addition to writing out the terms we put a silly clause that said that taking the friend out for lunch every week was a clause that would fulfill the primossy note. The thoughts here is to basically have a forgivable promissory note. The bank gets their 20% equity (I put the remainder of the 20% of the 1.354m down), the seller gets they want (1,254,000) and I was able to put $80,000 less.

Illegal? Fraud? Just taking advantage of getting a good deal?