The interest-rate they get is only 1/2% better, but the down-payment requirements are lower – and that’s where the trouble starts. For those looking for some legit doom potential, here ya go!
Jim Klinge
Klinge Realty Group
Broker-Associate, Compass
Are you looking for an experienced agent to help you buy or sell a home?
Contact Jim the Realtor!
- 682 S. Coast Hwy 101, Suite #110
Encinitas, CA 92024 - (858) 997-3801 call or text
- klingerealty@gmail.com
CA DRE #01527365, CA DRE #00873197
So people are claiming to be living in two (or more) separate properties to get lower mortgage rates on 2nd, 3rd, etc mortgages.
Obviously fraud but why are banks allowing this to occur? Buyers credit is maintained for 30+ years but banks aren’t checking if someone that’s looking to borrow 500k+ isn’t lying about owner occupancy?
I bet a lot of this is Buy and Bail (or will be soon) + likely charging rent on the 2nd, 3rd, etc properties.
This stuff has been going on for decades. Nothing ever happens to the borrower unless it is noticed at the origination of the loan and the bank declines the loan. After the loan closes, too late. Hell we can’t even prosecute people that steal under $1,000 in CA.