AboutJim Root Expertise Real Estate Financing of all types/styles--Government & Quasi-Governmental loan such as FHA & VA; Conventional "Fannie Mae" & "Freddie Mac"-backed Mortgages & all sorts of "Creative Financing" techniques! Credit Underwriting & Property Value & Condition Requirements of standard Home Loan Programs. Purchase Money Mortgages or Refinancing! Gale, shown with me here, has been a licensed Real Estate Agent & Office Administrator & my Research Assistant over the years!
Experience Over 30 years as a "Real Estate Professional," including Real Estate Marketing & Sales, Mortgage Banking & Residential Appraisal businesses.Past certifications as a Mortgage Co. Manager, Underwriter, Staff Review Appraiser, Compliance Inspector & Loan Officer with a nationally known Mortgage Company. 12 of the 30 plus years of experience was with the Dept. of Housing & Urban Development (HUD) as a Homeownership Program Officer, trained & proficient in all aspects of the Real Estate Sales,Appraisal, Inspection & Financing areas.
Organizations Former Member of Nat'l Ass'n of Realtors (NAR)& Mortgage Bankers Ass'n of America.(MBAA) Currently with National Ass'n of Review Appraisers & Mortgage Underwriters.(NARA/MU)
Publications Published in local, regional & national Real Estate industry magazines & newsletter on various Real Estate-related topics.Co-authored numerous Goevernment Manuals, Handbooks & Panphlets on Home Mortgage Programs while with HUD/FHA.
Education/Credentials Associate Degree with emphasis in Real Estate Studies plus:
Over 20 "Special Courses" relating to Real Estate, including Financing, while in Private Sector & with HUD's FHA Homeownership Division.
Bachelors Degree in Mass Communications &
Masters Degree in Education/Teaching.
Awards and Honors Professional Designations include: Certified Resiential Originator (CRO) with MBAA,Registered Mortgage Underwriter (RMU)& Certified Review Appraiser(CRA) with NARA/MU. Past awards include Outstanding Performance Awards for 10 of the 12 years with HUD/FHA & numerous
Real Estate Sales,Appraisal Reporting & Mortgage Loan Origination
awards while in "private practice"
Past/Present Clients Currently Director of a Company that provides Professional Development Seminars & Workshops to Real Estate Agents, Appraisers & Mortgage Lenders & both free(as needed) & fee-paid (sliding scale)consulting & inspection services to the general public.This "Expert" is a "Disinterested Third Party" who will not try to sell you Real Estate, nor Appraise or Inspect your Home, nor attempt to put you into a Mortgage Loan--all questions will be answered with your best interests in mind!
Question My husband's grandmother has a reverse mortgage on her home and she has drawn all of the money that was avaliable out, now she wants to sell because she cannont afford the upkeep. We would like to buy the home but the payoff on the mortgage is $87,000 +/-and the house only apprasied for $71,000 so the bank will not loan over the appraisal amount and for a HECM short sale it must be an arms length trasaction so that knocks us out. I am wondering would there be some type of fraud if someone (not a family member) bought the home and we turned around and bought it from them? Any information would be helpful. Thank you.
Answer
DANA-In my nearly 15 years as a Housing Official with HUD's FHA Division, your PLAN to use a non-family member as a "Straw Buyer" and then purchase the Home from them, would be considered as
an "Intent to Commit Fraud." OR "Conspiracy."If you'd actually gone through with the plan & we were aware of it,you could have been facing both CONSPIRACY & FRAUD AGAINST THE GOVERNMENT Charges. If I had become aware of the possibility of this, it would have been my duty to turn it over to our Legal staff for investigation and further action if found needed.
But, I'm no longer an FHA Official--and I'm NOT an Attorney.You should check my response above
and my further "GENERIC" information that does NOT constitute "Legal opinion, advice and/or guidance" with a Lawyer who specializes in Real Estate matters and/or Wills/Estates in your local area.You need to be "SPECIFIC."
You MIGHT be able to make arrangements with Grandma to ensure that YOU get the Home
bequethed to you, so that it becomes yours on her passing. In turn, you take over the "upkeep" that she cannot now "afford." I don't think there're any Laws against her willing the Home to you NOR for you to help her out financially while she still owns and lives in the Home that will be yours when she dies. Check, this out with the Attorney, too. This plan COULD be illegal, too.
Fraudulent actions involving the US Govt. can be costly to one convicted. Up to $250,000 fine and/or 10 years in Prison for a FRAUD CONVICTION only, more for additional charges of CONSPIRACY probably. Even if charged and not convicted, one's Legal Fees would be "humongous!" And you've already left a "paper trail" by discussing the purchase of it via Short Sale with the Lenders (Originator & Servicer) and this AllExperts inquiry that would be found by Investigators and used against you if charges were filed. A Lawyer's opinion, advice and guidance may cost you "a few bucks" NOW, but could save you "BIG BUCKS" later!
About Real Estate Home Mortgages
This topic answers questions related to purchasing a home, owning a home, home ownership, mortgage education, mortgage applications, and mortgage needs whether buying a first home or refinancing a current loan. Issues related to home ownership, home equity, mortgage education, refinacing options, home improvment finacing, first time home loans, home equity loans, vactation home loans, and mortgages for investment homes are dealt with here also. Though not the primary focus of this topic, Home Equity Lines of Credits (HELOCS), reverse mortgages, and calculating home equity may also be asked. If you do not see your home mortgae, home finacing, or home equity question answered in this area then please ask a question here
