Legal Question in Real Estate Law in Florida

Re: Cash Back Mortgages

You can do what you want with the $, but your tax will be based on the full amount.

Re: Cash Back Mortgages

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Absolutely NOT. This is considered mortgage fraud and will subject you to possible federal criminal penalties. Crimes like these are discovered when the party defaults under the terms of his mortgage and then the buyer turns you in to enable him to get a better deal with the prosecutors.

Run, don't walk away from this potential deal. Frankly, if you had to ask, you knew that it was illegal.

Scott R. Jay, Esq.

Re: Cash Back Mortgages

If it would appraise for this -- accurately -- you would not be selling the house for the price you are. If you know the appraisal is that inaccurate, and it seems difficult to claim you would not, you are participating in the fraud the same as had you planned it. Any competent real estate lawyer would have pointed this out immediately, as one other one has.