Quote:
Originally Posted by puckluck
The trickery is when the Mortgage broker or whoever tries to get a mortgage way above the value of the house.
So a house that is worth $350 k is being mortgaged for $400 k and then they take the difference of $50 k and pocket it.
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I must have misunderstood. Are you saying that I buy a house with a mortgage of $500k. The scammer makes the mortgage $550k though, takes the extra $50k without my knowing, and I have to pay that amount back? I guess I'm really not to clear on how this really operates. I figured that your friend just made a quick $5k here and the risk was that the mortgage is in his name and he could risk a defaulted mortgage crushing his credit rating?