Ask Experts Questions for FREE Help !
Ask
    jazdrazeke's Avatar
    jazdrazeke Posts: 1, Reputation: 1
    New Member
     
    #1

    Sep 16, 2008, 09:46 AM
    Paying off prior debt to qualify me for a home loan.
    I was wondering if it was illegal for an associate of a mortgage company to give me a personal check to pay off my credit card debt so that I would qualify for a home loan from a lender that her company had found for me.
    rockinmommy's Avatar
    rockinmommy Posts: 1,123, Reputation: 82
    Ultra Member
     
    #2

    Sep 16, 2008, 09:54 AM
    Wow! Run, run, run, the other way. Have you not seen in the news all the people who are being foreclosed on? THESE are the types of tactics that got thousands and thousands of people in that situation!!

    If not specifically ILLEGAL, it's highly questionable at the very least.

    Honestly, I know this isn't what you want to hear, and you're probably bound and determined that you can buy this house, but if you need the loan officer to pay off a debt for you, this is not the time to be buying a house!! If you're having to scrape THAT hard to get the deal done... you shouldn't be doing it.
    rockinmommy's Avatar
    rockinmommy Posts: 1,123, Reputation: 82
    Ultra Member
     
    #3

    Sep 16, 2008, 03:37 PM
    Why don't you tell us what state you're in, or the transcation is taking place in.
    froggy7's Avatar
    froggy7 Posts: 1,801, Reputation: 242
    Ultra Member
     
    #4

    Sep 16, 2008, 04:40 PM
    Technically, I'd say that it's perfectly legal for the associate to pay off the credit cards. Now, unless she is giving you that money, instead of loaning it to you, it's probably not legal for her to not report it as a debt on the loan documents. On the other hand, there are all sorts of strange loans out there, so it may be that it's perfectly legal.

    Now, whether it's financially sound is an entirely different question.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,302, Reputation: 7692
    Expert
     
    #5

    Sep 16, 2008, 06:03 PM
    Only ANSWER the question on this page here. Do NOT ASK a question. You are NOT logged in.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Does Personal loan taken for House Costruction Qualify for Tax Rebate [ 3 Answers ]

Does Personal Loan taken for building a house in addition to Housing Loan Qualify For Tax Rebate? I am enquiring about Indian Income Tax Laws. What are all the Documents required to prove that Loan is used for house Construction? Will I need a letter from my Bank which gave me Personal Loan...

Debt prior to marriage [ 1 Answers ]

I bought a home prior to my marriage- I put my husband's name on the home through a deed - now a piror debt of his has placed a lien on the house - can they legally do this if we wee not married prior to the debt ?

Will we qualify for our first home with low credit score? [ 4 Answers ]

Recently my husband became an independent contractor for his previous employer and is making double what he used to make. We have been saving up money for our first home and decided that now maybe now is the time. We are nervous because 5 years ago we were put through two lay-offs back to back...


View more questions Search