Sign Massachusetts Banking Agreement Myself

Industry sign banking massachusetts agreement myself

so who here does not want to commit bank fraud I don't I'm mark Stiles I'm down here at Studio B at 892 with Tom McCoy and we're talking about bank fraud what are we talking about really I want to talk briefly about the so called repair agreements what are these repair agreements okay so home buyer agrees to a purchase price with home seller and does their home inspection after conducting their home inspection they've revealed that certain items need to be repaired by the seller and the seller has agreed to complete the items needed so what happens next we hide it from the bank right wrong you never hide anything from the bank but why is this happening because there's some extra work that needs to be done right so maybe there's invoices that need to be collected or maybe there's an extra document that needs to be signed at closing right that says I'm satisfied I'm the buyer seller completed the work and I'm satisfied one document right but people feel as though there's this enormous obstacle that they have to overcome the worst case scenario is the appraiser has to come back out to the property and re-inspect to make sure the items that were outlined in the agreement and delivered to the bank have been completed and it's usually a hundred and fifty two hundred dollars right not a huge expense so what's the downside of actually hiding it from the bank well downside number one is it's arguably an unenforceable contract so if the seller decides at the last minute I've spent too much money this is becoming a total nightmare I'm not doing that work that could happen so what do you do you're gonna take them to court the first question the judge is going to ask is why did you conceal this from your own lender and that's the doctrine of unclean hands so you're going to have a very very challenging time in court when you come in with a document you're trying to enforce that you've actually concealed from your lender for some unknown reason so what else could happen inevitably somebody is going to be asked to send the purchase and sale agreement to the lender and guess what they're going to attach this so-called repair agreement that's being hidden or concealed from the lender so the lender the underwriter is then going to look at it and say well what else are they hiding from me are they hiding income is there an income issue here are they not calculating their expenses is the childcare actually more expensive than what they're stating to us so now they're gonna be digging in a whole lot deeper but referral partners what about the reputational damage that could happen from this think about this for a second you're asking your client to sign a document and not submit it to their own lender what if they ask you the question why why are we not submitting this to the lender you know and you may say I didn't know and I didn't think it was a big deal or what have you but that might even be worse to say that you didn't know it was a big deal it is a big deal that's why it's really important to make sure that everything is disclosed to the buyers lender and this way you're going to be seen as a very professional and ethical person now what about us the real estate attorneys we have an obligation to our client the lender to disclose all information necessary and what they would be looking for and this is included but since 2013 in addition to that with the new trade regulations we're actually deemed under their umbrella so lender if we do something wrong you're potentially going to be penalized for that so we are hyper sensitive to these issues and these disclosures and we at Sal's law will never do a side agreement or a repair agreement on one of the episodes coming up we're also going to talk about how interest rates are increasing and how dangerous it would be for someone buying an investment property and stating that it was their primary residence just to get a little bit better in interest rate that's a big no-no folks if you enjoy this content we would hope that you would comment below but more importantly to subscribe to the YouTube channel and share with everyone and anyone thank you and be well