Posted by Terrence on January 31, 2003 at 14:41:40:
That’s exactly what I was saying but again, I think that might be fraud.
Is this legal? - Posted by Terrence Thomas
Posted by Terrence Thomas on January 30, 2003 at 10:38:46:
Is this legal?
My friend told me that if I wanted to take equity out of a house when I refinanced but couldn’t because the loan wasn’t seasoned yet (I bought the house in Oct 2002) then all I had to do was have someone file a lien against the house for the same amount that I wanted to take out in equity so that my friend could simply be paid from the lien and then give me the money.
Would phony lien kill new loan? - Posted by John Merchant
Posted by John Merchant on February 01, 2003 at 10:43:26:
I’m thinking nervous institutional lenders would NOT like your credit and financials because of a filed lien (Uh-OH! This guy’s no good, what’s with this lien stuff?),so I think your idea of talking to a private mtg broker or two is a good one. This phony lien deal could hurt worse than it might help.
Lien might trigger DOS! - Posted by John Merchant
Posted by John Merchant on January 30, 2003 at 16:33:40:
I’m wondering if the “lien” notice, when your lender sees it, wouldn’t cause them to call your note…you’d better read the Deed of Trust very carefully to see if a new lien would trigger the DOS.
And where does this money you’re wanting “magically appear” from? Just because a lien holder files a REAL lien, doesn’t mean the money just instantly appears.
As you’ve been advised, why make it a phony lien? If it’s OK as per your 1st lien Deed of Trust, just go get a 2d loan on the property.
Unless I’m reading this wrong… - Posted by Ben (NJ)
Posted by Ben (NJ) on January 30, 2003 at 13:00:06:
it sounds like a simple second mortgage on the property. Nothing wrong with that.
Re: Lien might trigger DOS! - Posted by Terrence
Posted by Terrence on January 31, 2003 at 14:40:03:
I have 6 month interest only loan right now. My new loan, when I refi, would payoff my current interest only loan and the ‘fake’ lien. The payoff from the lien would go from the lien filer, into my pocket. I already know that this is not something I want to do because it seems to be bank fraud.
To get a second loan, is that much more different than my first loan in terms of interest rates since it’s for personal $? I assume I can get a second loan on the property from a different lender than the 1st lien holder, right. I guess I’ll consult a mortgage broker about getting a second loan.
Re: Unless I’m reading this wrong… - Posted by Terrence Thomas
Posted by Terrence Thomas on January 30, 2003 at 13:30:06:
So even though he’s filing a ‘fake’ lien as if I owed him money, and he’s filing it so we can dodge regulations set forth by the lenders, it’s still okay? This isn’t bank fraud? Should I ask an attorney?
Why does it have to be a fake lien… - Posted by Ben (NJ)
Posted by Ben (NJ) on January 30, 2003 at 13:57:35:
why can’t you borrow the money from your friend and give him a second mortgage secured by the equity in the property? If this is subordinate to the first mortgage why would the lender have a problem with it?
I’m confused as to why it has to be so cloak and dagger. However, if that’s what the lenders regs say then no, you can’t fraudulently circumvent them.
Re: Why does it have to be a fake lien… - Posted by Nate(DC)
Posted by Nate(DC) on January 30, 2003 at 20:18:14:
I think what he’s saying is, put the “fake” lien on and then get an institutional refi to generate the REAL cash. No cash actually changes hands when the friend files the lien.
NT