Is it possible to do this?
2007-09-09 13:52:40 · 7 answers · asked by macnern 1 in Business & Finance ➔ Renting & Real Estate
no it is called mortgage fraud! you cannot get moeny back from a home purchase! you can only get a mortgage for the sale price! on the buyers contract. this is a common mortgage fraud scheme! lenders will only let a borrower recieve no more than 1% of the sale price back!
2007-09-09 13:59:13 · answer #1 · answered by Anonymous · 1⤊ 0⤋
No can do! That would be fraud. Get caught, loose your house. It's that simple.
Further, a lender will only lend based on the real value of the house. So let's say you strike a side-deal with the seller to pay $285K and after the closing he slides you $25K. Who's to know right?
Well you need to have an appraisal done on the property before you can get a mortgage. If the house is listed for $259K chances are it's only worth $259K or less. So you offer $289K, write up a contract, have your little side deal, and the appraisal comes back $259K.
Now the lender sees this and your purchase price is $259K. If you want to pay more it comes out of your pocket.
By the way, were you thinking you were going to get 100% ffinancing? Think again. Sorry.
2007-09-09 14:05:12 · answer #2 · answered by loancareer 3 · 0⤊ 0⤋
Lenders will no longer let you take more cash out of the deal than you put into the deal; deposit, prepaid insurance, etc.
The only way to do this is show the price as is, and if it appraises high enough, take out a Home Equity Line of Credit at the same time. That's the only way to cash out on a purchase.
That doesn't make it a good idea.
2007-09-09 14:04:36 · answer #3 · answered by open4one 7 · 0⤊ 0⤋
Um...just because you offer more doesn't mean that gets you cash back. If you over offer and the buyer agrees, you are on the hook for the contract price and nobody is going to think you are getting a "refund", they will think you really wanted the house.
2007-09-09 14:00:37 · answer #4 · answered by Anonymous · 0⤊ 0⤋
If the house appraises above $285000 or more, the lender may allow you to do a combined mortgage and home equity. You'll then be paying back the larger amount for whatever number of years your loan is for.
2007-09-09 14:01:35 · answer #5 · answered by Venita Peyton 6 · 0⤊ 0⤋
You can offer 300K for the and it will not help. They will only lend on the appraised value at or under sales price. Also this is called mtg fraud
2007-09-09 14:07:37 · answer #6 · answered by Leo F 4 · 1⤊ 0⤋
PROBABLY, BUT NOT A GOOD IDEA. DON'T DO IT. YOU WILL BE VERY SORRY.
2007-09-09 14:07:13 · answer #7 · answered by Bettee62 6 · 1⤊ 0⤋