I posted a question regarding evicting my parents from my home. I did a stated income, “low doc” loan, otherwise known as the “liar’s loan” these days. I have excellent credit and had used my parents’ money from their home sale as the downpayment around 11% of the purchase price. I have the home on the market becuase I can no longer live with my dysfunctional parents (I bought a home for all of us, with much discomfort, and they are alcoholics.). I learned the hard way not to give my life to them anymore. But I’m worried. I did overstate my income. I have my mom’s inheritance savings in my name to pay the mortgage for a couple of years. I signed a form authorizing release of my tax records. I heard that even if I stay on time with payments, I could still get in trouble for fraud because I overstated my income. I stated assets correctly, but they’re being used to pay the mortgage. My dad was supposed to help pay but isn’t. Hence the proposed sale.
What I read was that the companies do spot checks on 10 percent of their loans. If I am always on time with payments, why would they foreclose on me? I’m scared. I hope the house sells first, but there is always that what if, especially with this market.
I just bought this house 6 months ago. I now drive 90 miles a day to/from work…I know I can’t afford life itself right now…but I’ll find a way to stay current on payments. I hate having to pay it with savings. I figured they would be ridiculous to demand full repayment if they are getting their money on time every month…

Sell and Rent Back