Mortgage Lenders Are Asking First Time Home Buyers For a Direct Cash ONLY Deposit To Them??? 😳😵 - YouTube

It is time to finish up fraud week, so today I want to talk to you about something that I learned in

My training and they were talking about this case that had happened and I was really shocked by it. But I was like, you know

I can see how it happened

So when you're buying a house for the first time

You don't know a lot you're counting on your realtor your lender to tell you what to do

So in this case what happened?

Here's the scam. The lender would tell first-time home buyers that they needed to bring the deposit into them

Yeah, so they would say oh you're putting three and a half percent down great

You need to bring it into me and it needs to be cash

Cash, seriously cash and so the people would go okay

We'll get the cash and if they were like well we want to do a check. No, it has to be cash

Those are the lending rules you need to bring your deposit to the lender in cash

Okay

And so then you're like, wait, how did they get the loan if they didn't have a down payment

Because the lender had stolen the cash well because the lender wasn't doing loans that required a down payment the lender was doing 100

financing

Yeah, so basically the whole scam was they would tell the borrower they had to bring in a down payment which they didn't because that

Wasn't the type of financing they were doing they would pocket the down payment and then give the borrower the other loan

Most people don't read or understand disclosures. It's why I have a youtube channel, right?

I have a youtube channel because there's a huge lack of education not everyone's watching it

Um, so please tell your friends to subscribe and like but no that was the scam the scam was tell the first time home buyer

To bring their deposit into the lender in cash. The lender keeps the cash gives them 100

financing loan

It sounds outrageous but when you think about it

People would totally fall for it

and the reason they would fall for it is because when you're buying a house for the first time, you don't know better, so

Let me tell you if a lender ever asks you for actual cash. It is a red flag

We do not touch cash. We do not touch down payments

We touch very little the only thing that I can legally collect for and it depends state by state some states

You can some states you can't is the appraisal fee and an application fee some states. You can't do the application fee

There's certain sectors you don't but that's it

I don't collect your down payment

And I would never take any of it in cash. I could never take any of it cash. Everything has to be documented

So if a lender's asking for you to give them money in cash be afraid if they're asking you to pay them in bitcoin

Bitcoins the new cash be afraid

Um, there's no reason a lender should be doing that in addition

Even if a lender tells you don't worry about your loan. I got you handled

You just get the keys and go

You need to read your loan documents. You need to read the application. You need to read your loan estimate

You need to read your closing disclosure those lay out the terms of your loans

You want to be able to say and in this case the people?

They didn't know better. They didn't even look at the documents

like I think one person found out letter later and then they found out that this whole

Uh lending brokerage firm. This was their trick. It's what they did

They would look for people who weren't educated and they would prey on them

and that's what we see whenever you have predatory lending in any segment whether it's payday loans, um

They're looking for uneducated people to take advantage of well, the good news is you're watching this video. So you're educated

You know, you're not going to give cash to a lender. You're not going to give cash to a realtor either

You're not going to give cash to anyone. We don't deal in cash

Okay, but in terms of like your earnest money, would you give that to the lender?

No, I don't need your earnest money

The realtor may drop it off with the lawyer or the title and escrow company

But you're not going to write a check to betsy the realtor either

So anytime a realtor or a lender is asking you to give them cash

It is a hard no and make sure you read your loan documents and your disclosures. So I hope this has been helpful

I hope you have a great week. I may not be filming next week because I think i'm coming down with something

I hope i'm not but if you don't see me next week, that's why thanks for watching