Getting paid, or paying someone outside of closing without the banks knowledge is mortgage fraud!

From what I've read about JA's program, this seems almost identical.

There are tons of mortgage fraud cases.

Hard to predict what lending guidelines or house values will be in the future.Any exchange of money between you and the seller that doesn't appear on the HUD-1 is most likely loan fraud.

Correct me if I'm wrong but isn't borrowing money on the premise that you're going to do one thing, then deciding two weeks later to do something else....fraud?

Sounds like loan fraud to me.Takes a LOT of rent to be profitable on a $240K note

That said, there are some lenders that will shy away from providing funds to a buyer who is participating in a double or simultaneous closing (they are concerned about both fraud and chain-of-title issues), so you could run into that as well.My best suggestion is to find lenders who will support your purchase and sale strategy and "encourage" your buyers to use your preferred lenders to finance their deals.

After glancing thorugh this thread, there appears to be some bad information.A fornesic loan audit is not the process of having you or your attorney tell the bank to "produce the note" which some have done to stall their foreclosure process.Rather, a fornesic loan audit (at least a real one) is where an experienced attorney goes over your loan documents as well as the appraisal documents and idnetifies (if they exist) any violations in the TILA (Truth in Lending Act), loan fraud, appraisal fraud, RESPA violations, etc.

CHECK with the hotline.Stores (and probably landlords, but check with ADA Hotline) need to know that they can ask the task question and should be doing so to keep the frauds out.

If you give them something outside of closing, then they are committing fraud.