A couple of our Tenant Buyers are currently working with a mortgage broker to obtain financing to purchase their lease option property. The mortgage broker convinced the buyers "some banks are hesitant in mortgaging lease to own properties and sometimes in order for the mortgage to take place sometimes you have to be creative in getting it."
Further advice from the mortgage broker regarding proof of down payment had the buyers tell me we need to sign a "gift letter" stating we were gifting the down payment to the buyer. "Also since bank only lets relatives gift money we would have to say you are his cousin."
This is FRAUD! And what is worse - this mortgage broker is convincing buyers they have no other choice but to commit fraud!
Of course, we at QDHomeQuest will have no part in that. We assured the buyers "we have successfully completed many sales to clients without resorting to making untrue statements," and proceeded to explain how we do that. We also suggested: "If that doesn't work for your bank or broker, then we'll work on finding you a different bank or broker." (We work with bankers who understand the service we provide and are able to get mortgages for our clients.)
These are good people, and have been excellent clients, and it irks me a so-called professional had these people convinced their only option was to break the law.
#SayNoToMortgageFraud #renttoown #leaseoption #noGREYareas