     RichardM (Richard612) | Wednesday, December 13, 2000 - 03:52 pm 
It sounds like a piggyback but there's something strange about the second mortgage. You don't have to pay it back under certain circumstances (!). What is this program that my co-worker was talking about? |
| Christine Baker (Admin) | Wednesday, December 13, 2000 - 05:41 pm
It's not a program. The "silent" part is that it is NOT recorded at the time of closing.
The lender of the 1st is not to find out about it. The buyers/sellers/real estate agents and escrow people all conspire to hide this loan from the lender on the first.
Have to admit that in the beginning of my RE career I did those kind of deals (the SOL must be expired!) Back in the 80s the TV/seminar gurus were big on "structuring" those deals, from "no money down" to "get cash back at closing."
These days you might even have a tough time finding an escrow/title company to handle the transaction. I highly recommend against it.
I'd say that everybody involved could be looking at jail time, lose their license and the property. |
| RichardM (Richard612) | Wednesday, December 13, 2000 - 06:44 pm
Hmm. He had said something about it being a government thing. I'll get details tomorrow. |
| Christine Baker (Admin) | Wednesday, December 13, 2000 - 07:02 pm
Ok, sometimes there are LOCAL programs with the County or State providing down payment loans or grants.
Call your housing department (County or City) and they should have the info with all the qualifying guidelines. I doubt they're "silent," and usually only "participating" lenders will allow those programs.
Check it out! |
| Don Semler (Dsemler) | Thursday, December 14, 2000 - 04:15 pm
They are in fact legit programs. Not like the ones Christine mentioned above. The ones mentioned by Christine usually involve the seller or realtor.
These program are sponsored by either local governments or Non-profits. The lender is fully aware of these. Usually they tie into an FHA loan or a FNMA community Homebuyer program.
The second is usually forgivable after something like 7 years. However, things in life are not free and these program have penalties if you move, sell or try and refinance to early. Some have a recapture clause or you may have to pay it all back. Most also have some sort of income restrictions.
You may also look into the MCC program in your state Richard. This can help with payments by gettign you at true tax credit. |
