Forgivable second mortgage question

[rsmith456]

I live in Florida and purchased a property that is a fixer upper. My intensions were to fix the property up and resell. My problem is when I purchased the property it came with tenants and now they want to purchase the property. I’m ok with this but they don’t have any credit and the mortgage broker they have wants me to do a forgivable second mortgage (he’s also referred it as a sweat equity loan) of 10% to be paid back at closing. Three weeks ago I got my real estate sales associate license (inactive at this time) and I’m hearing that this type of loan is a crime. I’ve also read that the real estate associate can be held accountable and my license could be at risk. I’ve asked the mortgage broker if this 10% would be in writing on the contract and he said ‘no’. This smells fishy to me but is this illegal? Thank you for any response!

[seniorjudge]

This smells fishy to me....

The answer to all your questions is in your own post.

[pojo2]

Report the Lender to the State Reg Board, the City Attorney, the State Attorney General. It is a crime & we need to weed the trash.

[gretch30]

Kentucky.

Is it a crime by the lender if they've told us our second mortgage has been "forgiven"? Now the story: Bankruptcy discharge (Ch7) August, 2004. Did not reaffirm home but continued to make payments....loan officer lied to us...he did not escrow taxes like he said he did in our monthly payment....found out too little too late....payment shot up to unaffordable....tried to keep making payments...did for a while....mortgage company wouldn't cut us a break on our first hard month of needing to pay late...now it's in foreclosure....mortgage co. says we can try to sell it first if we want....they gave us a listing price....was less than what we used to owe (before Ch7 discharge)....they told us the second mortgage had been forgiven....what's up?

Currently in cahoots in court fighting the bast***ds for breaking a federal law regarding FCRA. We're stuck on getting approved for a rental or ownership because of inaccurate reporting. We are starting to feel like big suckers. They keep saying we don't owe anything b/c of the BK7, but they won't report it that way or even send us a letter we can present to lenders or rental people. I filed with the courts today on the foreclosure case including exhibits to back us up on our claims. Any advice on this, too?

[seniorjudge]

Originally Posted by gretch30

Kentucky.

Is it a crime by the lender if they've told us our second mortgage has been "forgiven"? Now the story: Bankruptcy discharge (Ch7) August, 2004. Did not reaffirm home but continued to make payments....loan officer lied to us...he did not escrow taxes like he said he did in our monthly payment....found out too little too late....payment shot up to unaffordable....tried to keep making payments...did for a while....mortgage company wouldn't cut us a break on our first hard month of needing to pay late...now it's in foreclosure....mortgage co. says we can try to sell it first if we want....they gave us a listing price....was less than what we used to owe (before Ch7 discharge)....they told us the second mortgage had been forgiven....what's up?

Currently in cahoots in court fighting the bast***ds for breaking a federal law regarding FCRA. We're stuck on getting approved for a rental or ownership because of inaccurate reporting. We are starting to feel like big suckers. They keep saying we don't owe anything b/c of the BK7, but they won't report it that way or even send us a letter we can present to lenders or rental people. I filed with the courts today on the foreclosure case including exhibits to back us up on our claims. Any advice on this, too?

If you have a question, start your own thread.

[HomeGuru]

That's a threat**************......