Gift of equity and the loose fly!

Earlier this week, I received a call from the Realtor/Mortgage Broker(RMB) on one of my pending deals. I was kind of expecting it but was hoping it would happen sooner rather than later. You see when this guy called me about a month ago, to let me know he was sending over an offer for one of my listing, the caller ID on my cell phone read FRAUD!

When I was speaking with him I couldn't for the life of me remember why I had his number programmed in as FRAUD! Anyway, since it was an office number, I decided to give this guy the benefit of a doubt and we negotiated an acceptable deal with my Seller. I did all of my homework and actually had one of my trusted mortgage brokers review the Buyer's situation. All looked good to go.

The Buyer was getting a loan of 100% through Country Wide with the Seller paying 3% towards closing costs. Anyway, to make a long story short, CW denied the loan yesterday. Today, the Realtor/Mortgage Broker (RMB) called to let me know we could still get this closed if the Seller was willing to do a "gift of equity". It seems the appraisal came back at $187,000 and the agreed purchase price is $150,000. So RMB's bright idea was to inflate the contract to $180,000 and have the Seller write a letter "gifting" 20% of his "equity" to the Buyer.

RMB assured me this was perfectly legal as long as the Seller was a family member of the Buyer. Well OK then. Not only we will inflate the purchase price by 20% but we will also have the Seller lie and say he is a family member!!

Nope can't do that. The property is back on the market and NOW I remember why his phone number was programmed in as FRAUD! I just changed it by the way to FRAUD2! Next time I'll remember.

A little later today I received a call from the REALTOR® on one of my other transactions. This has been a very difficult transaction as the first Lender went out of business and we had to change Lenders about a month ago. Also, we are working with a Down Payment Assistance Program who is granting the Buyer $20,000. After providing them with tons of documentation we finally were within about 10 days of getting this deal closed.

The REALTOR® says, "The buyer has decided not to move forward with the closing." I say, "What the......!!!". The REALTOR® explained to me that Mrs. Buyer came home from work early yesterday and caught Mr. Buyer in bed with.........!!! Well just use your imagination on this one. Let's just say they ain't closing on this house. They will be meeting with an Attorney but it won't be to discuss real estate!

The moral of the first story is: "Don't ask Broker Bryant and his Sellers to commit FRAUD! It ain't happenin' on my watch."

The moral of the second story is: "Please keep your fly zipped until AFTER you get your house!"

A day in the life of a listing Broker. How was your day?

The beauty of honesty!
You want my Seller to do what?
You want my buyer to do what?
Don't make

http://www.brokerbryant.com/00165E

Posted on December 07, 2007 16:41:33 by Broker Bryant

Posted in Broker Bryants opinion

Comment from: Kathy [Visitor]

Mr. Tutas,

So very glad to have found your site. Found you by a Google search. Have been trying so hard to find someone with any knowledge of gifts of equity & a desire to see that justice is served. While going through a very nasty divorce the home I am living in which was being paid for by my late Grand-father-in-law that he had deed to his grandson & myself was going into foreclosure. He had made me promise I would make sure I would keep it in the family & that I would not allow his grandson to get it as he was afraid his drug problem would led him to selling it for little to nothing letting it out of the family, unfortunately my income is limited & I had trusted an old boyfriend to help me keep it. He would not make payments until the house was no longer in foreclosure. He had me give him a gift of equity as we were supposedly engaged and were to marry when my divorce was final. Well he allowed the house to go into foreclosure twice after he received the mortgage. Finally about 2 years ago added me to the deed then admitted he never planned on marring me took back his ring has the house in foreclosure again and now wants equity to sign off the deed. Yet no one seems to think fraud was committed. Is it only me or is something wrong with this picture? I have spoken to lawyers who seem deaf, Realtors in a daze, & mortgage companies who are perplexed. The Mortagage Broker that aranged the “gift” made me several copies & told m,e to hold on to them & keep them in several safe places, he said that it was his prayer I would never need them but if I did I had “insurance”. Now he is friends with the x. Your answer to this question would really be appreciated.

Kathy

P.S. The sooner I hear from you the better as I am a person of my word in life & death & G-d rest Pop’s soul so don’t wana let him down. Do have the means to pay the mortagae now praise b2 G-d. Soooo don’t wana have 2 see the kids ages 8,10, & 11 homeless, know if Pop were alive 2day would breake his heart.

Permalink April 26, 2008 21:07:29