How to purchase a property and get Cash Back?

I was told by a lender that he has a way to get cash back from an undervalued property. He told me that all i had to do is have the selling agent write up an addendum that he will pay X amount to myself (the buyer) 24hrs after the loan has been funded. All I needed to do to legalize it was to have the addendum dated 1 day after the purchase contact. Also he said not to mention it to the lender, that this is between you and the seller because they do not like to see such a thing happen. Is this legal or is there something I should know about before attempting to make an offer?

How to purchase a property and get Cash Back?
I have seen people go to prison for this. This idea has been around for decades and people do get caught and go to court and jail.
Reply:No, you can't. Lenders do not allow cash back on a purchase, unless it's the earnest money you already paid and a sellers concession is taking care of all of your closing costs.





It is against FEDERAL RESPA guidelines, for money to exchange hands after closing that does not appear on the HUD...and the LENDER has to approve the HUD or they will not fund the loan.





What your "friend" is asking you to do is commit a felony.
Reply:that's called mortgage fraud. There are ways to get cash back at closing, but that is not the way I would suggest. Read the article posted below, it will explain it better.
Reply:Have fun in jail!
Reply:Yea, it's illegal, i'll advice you not to try it, it could lead you to jail.
Reply:The feds will spent a thousand $’s to collect a hundred $’s





Loan fraud is quickly going to the top of the F.B.I.'s list of priorities.

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