Buying a new home and renting out the old one Realty Q&A – MarketWatch. Written By: Lew Sichelman. The author and nationally syndicated columnist is also a contributor to RealtyTimes® and HouseLogic … the latter being a subsidiary of the National Association of Realtors®.
Did Mr Sichelman really write and recommend the following strategy?
“… But the only way you can pull $50,000 out of your present abode is to refinance. And to do that, you’ll have to certify that you will occupy the place. So don’t let anyone in on your plan, especially your loan officer. And don’t buy your next house until the you have the money from the refi in hand.”
Yes, this is loan fraud. Excerpt from HUD’s website page “Don’t be a victim of loan fraud”: Be honest about your intention to occupy the house. Stating that you plan to live there when, in fact, you are not (because you intend to rent the house to someone else or fix it up and resell it) violates federal law and is a crime.
Thanks for reading – hope you’ll share.
Kim Novak, RE/MAX Masters