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FRAUD
ALERT
Progressive Companies
and
its
Principals do not support nor condone activities that may be considered
fraudulent.
With the
growth of the Real Estate Investment Industry, Lending Industry and Real
Estate Sales, the rise of fraudulent activity has also increased through the
years. This holds particularly true with transactions involving Real Estate
Investors. Lending on Investment Properties is
very
risky as it is, now the entire industry in on a fraud alert.
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With the
objective of “Acquiring” properties and funding projects with no risk to
capital, prematurely extracting equity, profits and operating, reinvestment
& renovation capital has been the goal of many. There have been numerous
Investors who have pushed the envelope to unacceptable levels. To combat
this, the lending industry has revamped certain elements within the risk
analysis process and introduced standard Quality Control measures to
hedge against fraudulent and/or unethical activities.
Progressive does not
become involved with Real Estate Investors & so called Mortgage
Professionals who push or cross limits. Some of these activities include,
but are not limited to:
·
Acquiring Investment Properties as an “Owner Occupied Resident”
·
Increasing Sales Prices to Cover Down Payment
·
Introducing false notes and liens to bridge the gap between an institutional
loan
amount and purchase price, while providing false asset documents
·
Falsifying income, credit or asset documents
·
Fraudulent Appraisals & Title Work
·
Incorrectly structured and/or Undisclosed Assignments coupled with “Dirty”
Title
The list goes
on…… Back in the day, some of these tactics were used simply because high
leverage financing didn’t exist. Today they are used more so to enable the
"Average Desperate Joe" to begin Real Estate Investing. Whether
intentional or ignorantly misguided, some of these tactics are still being
used today. Many of which have become a big “No No” in the world of
lending.
Today, the
credit worthy can qualify for 100% Investment Property Lending. With the
proper guidance, good Real Estate Investor Students can tap into the many
“Legal” creative strategies, to further promote the concept of “Using Other
People’s Money” and “Equity”, to address the Operating Costs of their
business as well as the property on hand. While Progressive at times can push the
limit, our experience and up to date knowledge of the lending laws keeps us
and our clients on the right side of the tracks.
While there
appears to be hundreds of lending sources in the industry, there are only a
handful of capital providers on secondary markets, providing the capital for
the seemingly endless supply of mortgage lenders and mortgage banks.
Broadcasting your loan request to several mortgage lenders or brokers will
waste time, jeopardize your credibility with the mortgage industry and your
seller/realtor, and will often adversely
affect your credit scores.
If you have
been turned down elsewhere, please let us know in advance. More often than
not,
a credit
worthy applicant is turned down due to poor structuring or
guidance by an ill-equipped lending officer or broker. We will find out
anyway, so ... by placing all of the cards on the table…
hours,
even days of precious time will be saved, and ultimately provide us the information needed to best restructure or salvage
your loan request.
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