Not to be combative, I have the greatest respect for everybody in this thread, but I'd like to suggest the impetus for switching labels (Hard money to private money) is coming from two of the biggest hard money organizations in the country:http://www.cmabrokers.org/ - and-http://www.aaplonline.com/If you notice, they both have "private money lenders" on the first page of their website.

The bank will have an addendum that you and the seller will sign saying there are no side deals between you two to fraudulently benefit the seller after closing.

For those veterans of Central Texas real estate, my question centers on the topic : how to combat both the over-valuation of Austin-area properties and saturation of "weekend warrior" investors who simply overpay for distressed homes.Obviously, we are working in a market with high-demand -- due to the 100+ new residents we gain on a daily basis -- and short-supply.

One time, the credit card company claimed that some of the charges were fraudulent!

EVEN IF THE LENDER IS PAID BACK when the loan is sold on the secondary market and the secondary buyer's examiner finds the fraudulant second and they make the originating lender repurchase the loan who in turn charges back the commission to the broker - people get hurt even if the buyer continues to make their payments on time.

What I am consistently finding is the purchase price is inflated fraudulently so the loan is given to a property that does not have the value on the contract.

EIN identity theft is more problematic than SSN theft and is growing more quickly as there is so much more that can be done fraudulently under a company name. 

I would get a direct conformation letter from the tax authority.The problem is certified checks can be fraudulent and if she wrote a personal check it could bounce later on.

You think you have the money, only to discover it disappears a few weeks later when the bank figures out the check was fraudulent.

If you say no, and sign that application (it's on the 1003 loan application) and you lied, it's an attempt to obtain a mortgage loan under fraudulent terms/conditions.