I built a spec house last year with the hopes if flipping it for a profit. After getting the construction loan, I began working on getting permanent financing. A little while into it, I was advised that the lender was not wanting a owner occupied agreement signed. The lender said that it was just a formality and it didn't mean anything. I should point out that he knew of my intentions the entire time.
Anyways, come closing time, I realized that without this property selling right away, I would never be able to make the payment. We listed the house and the market took a dive. It hasn't recovered and now the only showings I can get on the house are with it being listed $50,ooo below the loan amount. The bank is now telling me that everything about it stinks of fraud and has been threatening me with going after me for fraud. I've tried to do a deed-in-lieu of foreclosure and he says they won't accept that because I never made a payment. The short sale isn't working because I can't get an offer in. My questions are how likely is it that I could be presecuted for fraud and do I have any other options on getting rid of this house? If I could, I'd gladly give the house up.
Anyways, come closing time, I realized that without this property selling right away, I would never be able to make the payment. We listed the house and the market took a dive. It hasn't recovered and now the only showings I can get on the house are with it being listed $50,ooo below the loan amount. The bank is now telling me that everything about it stinks of fraud and has been threatening me with going after me for fraud. I've tried to do a deed-in-lieu of foreclosure and he says they won't accept that because I never made a payment. The short sale isn't working because I can't get an offer in. My questions are how likely is it that I could be presecuted for fraud and do I have any other options on getting rid of this house? If I could, I'd gladly give the house up.
