WOW… :eek:
Hello Everyone,
I began reading this thread because it seemed like a good subject. WoW! It seems like a real Hornet’s nest here! Where did all this anger come from?
I, too, am a Loan Officer, and I must agree with Ben. I have always been told that the intent to “forgive” the 2nd at closing is fraud! Pure and simple.
This was discussed many times with many lenders, as creative financing was making a big hit with the 80/20 contract a few years ago. The purpose of this seller carry back was because the buyer could not get 100% financing, and the 20% carry back, was the answer. Then good-by 2nd mortgage after closing. The Lender’s were wise to this and check everything. As a loan officer, if I know about this arrangement, I, too, am committing fraud!
Sorry if I stepped on anyone’s toes here.
Linda