Is it fraudulent to re-mortgage and use the money to put a deposit on a new house?

Is it fraudulent to re-mortgage a property and then use that money to give to someone to put down as a deposit on a new house , and then having your old house re-possessed?Is it fraudulent to re-mortgage and use the money to put a deposit on a new house?
No it's not fraud, do what you want with the money, if you don't pay it back then your credit is shot.Is it fraudulent to re-mortgage and use the money to put a deposit on a new house?
People re-mortgage their properties for all sorts of reasons, buying a car, holidays etc. None of this is fraudulent. What you appear to be saying however is different. What do you mean by ';having your old house re-possessed';? Are you planning to deliberately and knowingly default on payment one the re-mortgage is through? If so, that would definitely be fraud and you will be very lucky if you don't end up with a criminal record.
As a pre-conceived plan, yes, as you are obtaining the re-mortgage under false pretenses. The odds are that if the bank knew you had done that, they would come after you in court and attempt to place a lien against your new house or have your wages garnished this of course assumes that when the bank sells your foreclosed house, they cannot cover the balance of the mortgage plus fees with the sale price).





Also, by re-financing and taking money out of the home, you are probably going to increase your payments and make it that much harder to obtain the mortgage on the home you plan on buying.





This all begs the question of why not just sell the first house and use the proceeds for the second house. If you first house is underwater or you have more than 80% Loan to value, you won't be able tore-finance anyway. If you have less than 80% LTV, you would, in effect, be waling away from that money.
Sounds pretty fraudulent to me - you may want to consider credit help services or if you already a homeowner I would consider a loan modification or forebearance agreement through your lender.


This may enable you to stay afloat and buy some time to recover and get caught up on your missed payments. Typically it will take at least 12 on time payments to really reflect positively on your credit score.
If you qualify for a mortgage, you can do whatever you want with the money. If you have enough cash to buy another house, you can do that. However if you're only getting enough cash for a downpayment, a lender will have to qualify you for a loan for the rest of the purchase price. Your income and credit will have to support the debt ratio.





However, if you then stop paying on the house you used as collateral, the bank will come after you. And let me just mention that we are not stupid here. We will figure out that this is what you had in mind all along and we will come after you one way or another.





There are people who legitimately do that exact thing. They mortgage their home, buy a new one and either sell the old one or rent it out. This is fine, a perfectly respectable thing to do.





But if you stop making payments, it will be obvious that you intended to defraud the bank and we won't like that.
Not always. You aren't getting away with anything here. The lender who gave you the loan assumed you would pay it back and they had enough security to grant a loan. Forreclosure will either make them whole or else sticking you with the deficency balance will; as well as screwing your credit for what is in effect making an equity loan to yourself





There is no requirement to reveal what you are using the money from a home- equity mortgage for. So how can it be fraud?
I'm in no way an expert. But common sence says it's not fraud. Conceptually, the idea is not devoid of consequences. You may not be able to avoid bankrupcy- which will try to structure your debts. It is not a fun way out. If you can do it legally, it's not fraud. However, trying to actually pull it off w/o consequences will be difficult. Research all the steps and you will realize it's not fraud, but fraught with another set of problems and setbacks.
Yes that is fraud. It is very easy to follow the money. You get cash out from the refi. You deposit the check from the lender. You deposit it in your account and the money shows up in someone elses. That money is used to buy another home, you fail to pay mortgage. Intent to commit fraud is quite evident.
no, it's not fraudulent unless you lie on your ';letter of explanation for cash out';. as an underwriter, when you go to purchase the new home, i would look for the buy and bail. what are the odds in you buying the new home and bailing on the old home.
Yes of course, unless you're an MP.
of-course it is fraud.