# Ex H may be committing fraud? Am I an accessory?



## uhaul4mybaggage (Jul 20, 2010)

Is this short sale fraud?
Thanks for reading.

My x-h and I had to short sell our house in 2010. It had 3 loans on it (1st,2nd, equity.) We owed more than 50k difference between final sale, and combined total owed (all notes with same bank.)

The bank did not forgive the difference, and we signed an agreement to pay back the difference for $200/month (100 each) for 2 years and then the bank would reassess our ability to pay. At that time, it was my x's (said) intention to try to renegotiate a forgiveness of the balance.

The bank never sent either of us a bill or payment booklet for the 200/month we were supposed to be paying. As far as I know, neither of us have made any payments in the 2 years. I do know that they still consider it debt, because I called them at tax time 2011 to find out about a 1099 form, and they said there wasn't one sent because we still owe that money. I also know that the contract says that if we miss any payments, the bank can call the full balance due immediately.

My x has somehow found a way to get a rent to own agreement signed on that same property. He is moving himself and our kids in right now.

I am concerned that this may not be legal, and that I may be considered an accomplice to fraud if he does this with my knowledge (even though it is strictly without my consent.) My counselor (therapist) suggested that this may be my problem as well if I don't act properly.

I don't have funds to hire a lawyer. I am about to declare bankruptcy. Legal aid has been a dead end. Does anyone have any experience or relevant advice they could offer up? Much obliged.


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## uhaul4mybaggage (Jul 20, 2010)

He says the young couple we sold it to had it up for sale, and he just happened to stop in and ask if they would be willing to rent it. They said, no, but then they got a couple of really low offers, so they put up a for rent sign, and he went back and asked about rent to own. I did not know the couple we sold to at all; he says he didn't but I have no way of knowing for sure.

So, he is looking at moving into and renting with option to buy a house that we both jointly owe over 50k on.


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## uhaul4mybaggage (Jul 20, 2010)

I have thought of calling the bank, but I don't want to stir up trouble if he is doing everything legally. My kids would think I am just bitter and jealous. I am angry about the situation, but I would not send their dad to prison if I could help it. And I certainly don't want to end up there myself.


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## diwali123 (Feb 17, 2012)

I'm not a lawyer but I work in the field and have bad a lot of training on fraud. I don't believe this is fraud because the deal has been done. The house has been sold and so the short sale is over. short sale fraud has to do with the actual short sake transaction. It's usually people who know each other agreeing on a below market sale price and then the buyer allows the previous owner to live there. If he knew these people and planned this all ahead of time it would be fraud. But since he didn't know them it's not fraud. 
If the bank found out it might raise red flags. But honestly most banks are so overwhelmed with foreclosures and short sales that once the deal is done they don't care. 
So you signed a side note, is that right? Are you planning on getting a lawyer to help with bankruptcy? 
From what I know depending on the state you are in, sometimes they don't even come after you for the side note. 
Now when he goes to the bank and tries to buy the house back they probably will give him a lot of crap
about it. But that's his problem. He's going to have to jump through hoops to show that everything he's done is legal. 
And again seriously banks don't have the resources to prosecute small fraud offenders. All they do is deny a loan or deny a short sale. They only go after people who are defrauding them
for millions of dollars. I really wouldn't worry about it.
_Posted via Mobile Device_


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## Homemaker_Numero_Uno (Jan 18, 2011)

Just make a statement to your attorney to cover all your bases and get it notarized and send a copy to the bank. Then your butt's covered, the bank would have to spend more money to prosecute. Chances are it's not worth their while as you don't have any money. Of course, they can choose to monitor your income and taxes and when and if they see you have assets then bingo you got to pay. You probably signed some kind of form that lets them access your credit score and earnings. I wouldn't worry about it too much, if you win the lottery it wouldn't be so bad you could pay them off and have some left over. banks have other worries than your small potatoes, so cover your a** and rent an apartment and let your ex fry his own potatoes whatever way he likes. His actions certainly raise some questions, it might cost him to answer. But that's his business. I think you are being overly paranoid on this one, do what you can do in the way of documenting and move on down the road.


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