Quote:
Originally Posted by albertGQ
I'm sure there are people that apply for mortgages, get their bureaus pulled, say their DP is a gift, then take out a cash advance from their credit card for the exact same amount as the "gift", deposit in their account to make it look like gifted funds, and get mom to write a gift letter. Viola! Down payment from non-borrowed funds!
|
Just because people do something doesn't make it legal or right. When you sign at the lawyer's office you have to make a statutory declaration that your down payment isn't borrowed. Lying on that declaration is a criminal offense and is mortgage fraud. Saying everybody knows that people borrow their down payment ignores the fact that this is the system we rely on and people circumventing it are a big part of the problem of defaulted mortgages.