Severe Penatalties for Real Estate real estate closing gifts Fraud
Severe Penatalties for Real Estate real estate closing gifts Fraud
Q: I am being asked to put something on the HUD-1 that is different than what I agreed to. Is that ok?
A: Probably not. The HUD-1 should reflect the agreement between the parties and match the terms set out in the purchase contract. You may be committing loan fraud if you make a false representation to a lender on the HUD-1, the loan application, or elsewhere in order to obtain a larger loan amount or a loan on more favorable terms than you are otherwise qualified for under the lenders guidelines. Loan fraud is a federal crime punishable by up to 30 years in prison and $1 million in fines. If you are asked to do any of the following, refuse and immediately contact the North Carolina Real Estate Commission:
create a false gift letter for down payment funds.
make it appear you made a deposit when, in fact, you did not.
give the seller a secret or even false or forgivable second mortgage.
make payments outside of which are not disclosed on the HUD-1, such as additional fees paid to service providers, to the seller, or third parties.
make a false statement that you will occupy the property.
give false personal information about yourself to the lender.
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