Sep
22

I need help with scaring the crap out of a real estate agent that is trying to entice me into mortgage fraud?

By
mortgage fraud

This person is an acquaintance so I don’t want to put any strain on my relationship with this person, so I need to do this in an “innocent” way so they don’t realize that I know what he is trying to get me to do. He probably thinks I’m kinda dumb like some of his other friends.
Is there anything I could say in an innocent way (as if I didn’t really know and understand the issue) to make him freak out really bad so he won’t try to pull this kind of crap on people ever again? he’s basically trying to do 2 things: get me to commit mortgage fraud with him and at the same time trying to sell me a property for at least 50K more than it’s worth while he says he is trying to “help” me.

Sell House Quick
Categories : homeowner loan

9 Comments

1

He cannot commit mortgage fraud unless you agree to it, and I fail to see the problem. You have the CHOICE to walk away and until a crime is commited you have no recourse.

1st…he isn’t your friend if he is trying to get you to break the law.

2nd..no way would I continue to use him…b/c obviously you cannot trust him.

Without more details, no one has any idea if what he is doing is really illegal or not.

So what if he wants you to sign a contract to a property for $50K more than it’s worth….why can’t you refuse to do that?

2

Just come right out and ask “isn’t what you’re asking me to do mortgage fraud?” That’s usually enough. It gets the point across that you know what the “friend” is trying to do and you’re not going to have any part of it.

3

Why not just research all the laws he’d be breaking, and lay it out for him with a straight face?

Show him every law this transaction breaks, and the penalty for doing so to try and convince him that this is stupid. Why bother beating around the bush? He obviously isn’t.

4

Any argument you put forth will be met with a counter argument because, as you said, he thinks you are totally unaware of what he is trying to do.

Bow out of the situation gracefully. If you are married or have a g/f say your partner has changed her mind about it right now (known as appealing to a higher authority). This is impossible to counter and if he attempts to counter just blow it off ( saying “you know how it is” or “got to keep the woman happy” or some other related cliche) because you are obviously going to go along with what you and your partner agree to no matter what someone else says.

Do not focus on “teaching your friend a lesson”. They will learn when they are caught and it’s just a matter of time. You want to be out of the picture when that happens.

5

Run do not walk away from this situation. Tell your friend that you decided not to refinance at this time or whatever you need to. You are the one living with the fraud and you are the one that will have to pay the consequences. No matter what they say this will NOT help your situation if you have to lie to get the loan. There is a reason lenders provide guidelines soas not to get your or them in over your heads. Good luck.

6

Tell him that’s he’s a douche bag and not a true friend. If he were your friend he wouldn’t be trying to get you too commit fraud and he wouldn’t be trying to sell you a house for $50k more than it’s worth. I hope you realize the commission he’s trying to make at your expense.

7

All you have to do is tell him you will run the deal by your bank. Banks are very conservative in values and lending. Why don’t you just tell him you spoke with your accountant or advisor and they advised you against the deal? Tell him your advisor said it “sounded ” like fraud and you don’t want any part of it and as a realtor he should be concerned about losing his license for what he’s doing. I’ve been in real estate and lending for 24 1/2 years.

8

Hmm ,,, intentionally buying a property in your name that is overpriced by $50,000, and being willing to put your name on that mortgage, you call this person a friend? Will this “friend” be there when your trying to sell this overvalued property and can’t pay-off the mortgage balance?

Run, run, run and don’t think for a minute this person is a friend.

FYI – there was recently a large expose of this type of fraud in Frisco, Texas.

9
menasha_rabinowitz
October 28th, 2009 at 9:21 am

That is why I always recommend not doing business with a friend or relative.

What your friend is proposing can get him several years in a federal prison. It is a tough choice for you. Do you just walk away from him and let him commit the fraud with someone else. He is probably aware of the penalties but is willing to take the risk to make big bucks.

If you want to stop this crime, call your local FBI office and tell them what you know. They may (or may not) set up a sting or watch his transactions and then pull him in for questioning. By the way, lying to an FBI agent is perjury and can get you serious jail time,

Any deliberate misinformation that appears on the closing HUD statement is considered fraud and perjury. A coomon example is: If another agent offers to settle a repair outside of closing by a direct cash payment without notifying the bank, that also is a federal violation.

I have been participant to several FBI stings and have given testimony that has resulted in several jail terms, the longest being to a 30 year attorney who committed loan frauds (like your friend proposes) and perjury to the FBI. He is serving 15-20 years now.

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