Real Estate

A look at the Layered Transaction and seller concessions.

I recently read a very informative and enlightening blog post written by a loan officer named Larry Morris. Larry tackles the difficult question of the propriety of seller concessions in quickly devaluing real estate markets. In other words, the price of a property is reduced before a contract is written at the original price with a seller’s concession. The term “layered transaction” is used. Note: The lender is aware of the concession, but is not aware that the selling price was inflated. It sounds like a simplistic scenario, but believe me … it’s not. Mortgage fraud has many disguises and is often very subtle and difficult to detect.

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Read more from this blogger: The Layered Transaction