Legal Or Not? Ethical Or Not?
with the lending institutions willing to take higher risk in lending practices, here is the question i propose!
Example: $300,000 app. prop.
$200,000 mort. no other liens
lenders no longer updating title before recording mort.
$100,000 equity line
x 10 lenders (that do not update)
________________________
$1,200,000 against
$300,000 home
since it is not illegal to shop for morts. i know (for a fact) i can close w/ 10 lenders on the same day, have access to the $, meanwhile my mort. is arriving at the courthouse (1-3 months later) via regular mail w/ no title update to verify intervening liens. i could have even sold the collateral (house).
is it not the lenders resp. to insure position at the courthouse prior to giving client access to $. if and when the comman RE crook pulls this, what is the lenders fallback? promissory note? judgement? ruined credit? jail-time?
would you lend $ using RE as collateral and not verify the note grantor had not borrowed from others putting you in third, fourth, eighth position. even better yet, would you loan $ using RE as collateral and not verify grantor had not conveyed property before you recorded and disbursed funds?
just curious to throw this out there to see if anyone has heard anything of this nature before.
Big-time Fraud. Use the thought process for good, legal opportunities and you can make the million and still sleep at night!
There is NO WAY you can close with any lender on the same day, no matter what they tell you-
LOOK OUT YOUR WINDOW---SEE THOSE FLASHING LIGHTS? WELL, ITS NOT THE BLUE LIGHT SPECIAL AT K MART HONEY...THINK TWICE. HAVE A GOOD ONE
It will bring a maximum sentence of 30 yrs federal time. This is called Loan fraud.
Bad Luck,
Robert