Expert: Dick Dennis - 11/10/2008

Question
is it legal for a person to sell there home in a short sale to a family member for 80,000 less than owed then turn around and get land contract from family member for said house. i think it is morgage fraud?

Answer
The main reason why we are in this credit crunch, Wade, is because of borrowers lying on their loan applications. This action was encouraged by mortgage brokers because they were encouraged by the ultimate lenders who were encouraged by the investors who bought the mortgage as a security.

If the borrower didn't lie on the application in the first place it is not likely we all would be in the financial condition the world is in.

Now your relative wants to do some more of it? Yes, Wade, you are right. This may be mortgage fraud. Besides, your lender probably would not allow your relative to take over the property unless he/she actually lives in it. And they would check to make sure. The ball is in your court, Wade. I wish you well.

Dick Dennis       dixiedee13@aol.com