San Diego short sale

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Wednesday, August 20, 2008

Short sales - things to consider when turning over your financials to the lender

Realty Times - Short Sales Set Sail Again
Ironically, while you are proving insolvency you also may reveal the dark under side of your original application. Insolvency today could be rooted in financial trouble that began before you purchased your home -- trouble you didn't reveal to your lender who could now consider your tight lip fraud from the past.

That might attract the attention of federal authorities who've been cracking down on mortgage fraud, a federal crime punishable by up to 30 years in a federal pen or up to $1 million in fines -- or both.

According to the FBI's "Financial Crimes Report To The Public Fiscal Year 2006," 20 percent of today's mortgage fraud stems from a home buyer lying about income, debt or other information in order to buy a home.

Much of the remaining 80 percent of mortgage fraud also involves deceit, deception and misinformation, according to the FBI.

In addition to reopening your application, the short sale will look at other liens against the home.