sgip
Well-known member
I'm pretty certain most serial refinancers have closed one refi on a Monday and started a new refi on a Tuesday. Because of this practice, many lenders will have this sort of warning in their application documentation:
"We are aware that by signing this form we acknowledge that we have been completely forthright. We have no intent to sell and or refinance our property within the next 6 months. We are aware that mortgage fraud is punishable by FBI with possible jail time and/or monetary penalties. We are aware that if we refinance or sell our home in the next 6 months that we may be held responsible for paying back any credit given to us by COMPANY X during the course of the transaction."
First - the "FBI" warning is a non-enforceable scare tactic. Refinancing when you want to is not fraud. Second - the "May be held responsible" is fuzzy at best. "May" is not "Will" so you can disregard it IMHO.
That said, has anyone ever had letters of demand, phone calls, threats or other issues about recapture of lender credits presented to them in situations where you've closed a refi on Monday and refinance again on Tuesday?
My .02c
"We are aware that by signing this form we acknowledge that we have been completely forthright. We have no intent to sell and or refinance our property within the next 6 months. We are aware that mortgage fraud is punishable by FBI with possible jail time and/or monetary penalties. We are aware that if we refinance or sell our home in the next 6 months that we may be held responsible for paying back any credit given to us by COMPANY X during the course of the transaction."
First - the "FBI" warning is a non-enforceable scare tactic. Refinancing when you want to is not fraud. Second - the "May be held responsible" is fuzzy at best. "May" is not "Will" so you can disregard it IMHO.
That said, has anyone ever had letters of demand, phone calls, threats or other issues about recapture of lender credits presented to them in situations where you've closed a refi on Monday and refinance again on Tuesday?
My .02c