- This topic has 8 replies, 4 voices, and was last updated 10 years, 1 month ago by Anonymous.
- February 10, 2011 at 12:14 am #411621AnonymousInactive
do you have 2 deeds of trust on the property? if so then the accounts are separate. The only other reason would be if the loan was transferred to another provider say countrywide to bank of america and c/w never showed the transfer. Since they are now one in the same that is an easy fix
- February 10, 2011 at 12:22 am #411622AnonymousInactive
To be 100% honest it is in fact fraud to tell the lender you intend to live in the house, but have no intention of doing so. At closing you will be required to sign an affidavit of this intent on your part. There is that word “intent” … a home buyer can intend to live in the house at closing but change their mind an hour later and there is nothing fraudulent about it.
Still I agree with the bank that it is in your best interest to go the FHA route, than commit fraud as the rate will likely be very similar. Honesty is the best policy
- February 10, 2011 at 1:12 am #411623AnonymousInactive
It is not legal what you are presenting. It is mortgage fraud. If the district attorney of your county wished to press charges against you if they found out, and it’s very easy to find out, they can. In San Diego County, you’ll get three years in state prison for mortgage fraud and mortgage fraud is exactly what you’re proposing. Prior to your jail term, Bank of America will call your loan due and payable immediately because of your fraudulent application. And you won’t be able to pay it, or refinance it, so you may lose the property.
Take the investor loan. Yes, the down payment will be 25 – 30%. But you won’t risk all of the above.
- February 10, 2011 at 2:05 am #411624AnonymousInactive
I don’t think they will let you by with it. You may be pre-approved now, but I know like when we did all the paper work to finalize our loan it asks questions about all that stuff, so if you lie on it it’s fraud.
- February 10, 2011 at 2:13 am #411625AnonymousInactive
This would then be considered an investment property and yes you would need to let the loan company know that. If you don’t that is mortgage fraud and you could go directly to jail. And if they knowingly gave you a mortgage for property that you didn’t plan on living in, then they too have committed mortgage fraud.
- February 10, 2011 at 2:48 am #411626AnonymousInactive
To all the other posters: Reread the question. She clearly states that she DISCLOSED the fact that she is not going to live in the home but the co-borrower WILL therefore making this a primary residence with a non occupying co-borrower. Conventional guidelines do allow for non-occupant co-borrowers but with more stringent guidelines. Here are a couple
* Maximum LTV is 95%.
* For LTV’s greater than 80%, the occupant borrower must make the first 5% of the down payment from his own funds.
So yes, B of A can approve you but you may still run into problems with the Private Mortgage Insurance company.
What I don’t understand is why you wan to go with a conventional loan.
The down payment required is higher, the monthly mortgage insurance is a lot higher and you have to pass the private mortgage insurance underwriting in addition to passing the lenders underwriting.
The guidelines for both the loan and the PMI are a lot more restrictive than FHA.
- April 16, 2011 at 1:41 am #198870AnonymousInactive
The price of my home has dropped 30% since I got the loan.
- April 16, 2011 at 5:26 am #256474AnonymousInactive
may you should refinance the loan and you can get money back to help pay all other bills this is a great website they have all kinds of things many times they will help you in 72 hours no fee this is free
- April 16, 2011 at 12:18 pm #257412Walker AbeMember
Loan modification has nothing to do with the value of your home.
Lenders only do loan modification when you are unable to make your mortgage payment. Usually you see this when someone purchased the home on an ARM and now the interest rate has re-set and jumped through the roof. The lenders that do this – figure it’s better to work with you than to get yet another house in foreclosure.
You don’t get loan modification just because your home dropped in value.
When you purchased the home – you picked out the home – you negotiated the purchase price and you asked for a loan of $X.xx and agreed to pay it back. You took the risk that the property would go up in value — not the bank. When the gamble does not pay off – you are the one that takes the loss – not the bank.
- You must be logged in to reply to this topic.