Is inflating a payoff a CRIMINAL OFFENSE in GA?

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Is inflating a payoff a CRIMINAL OFFENSE in GA?

Jesse LeBlanc
Investor · Atlanta, GA · Member since 2016 · 627 posts · 374 votes

FACT: Borrower asks lender a "favor" to increase their payoff as a way to get hundreds of thousands extra back but NOT given back at closing on HUD, rather under the table directly from lender to borrowers after lender received the inflated payoff.

Is this in fact considered Mortgage Fraud? Is it some other offense? If so, would both borrower and lender be charged the same or just one party? What could this mean for the lender if exposed to OCC or FDIC?


please reply with actual law codes if it’s criminal. Please add supporting links, documents or links to sources etc to your response if possible.

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Russell BrazilBusiness Member
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Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
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From what I garner here....to me it seems like the title company just took your money, and distributed funds to a party they should not have because the property did not close. When the transaction didnt close, you simply should have received your funds back.

So what Im seeing here is the guilty party is probably the title company. Potentially the lender if they conspired with the title company. 

Also as a side note....Youve been pretty passive aggressive and attacking to people trying to help you out, and simply understand the situation better. Be kind. It will go a long way.

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  • Peter Walther
    Specialist · Winter Springs, FL · Member since 2009 · 1k+ posts · 747 votes
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    Sorry, it's Georgia Code § 16-8-3.

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  • Henry Lazerow
    Real Estate Agent · Chicago, IL · Member since 2017 · 2k+ posts · 2k+ votes
    1y

    I have done tax defer settlement setups for sellers before. Nothing illegal about it. Now if they paid off a lien holder before close with your earnest that would be illegal, a bit hard to understand the full story from your text. 

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  • Tom GimerBusiness Member
    DMV · Member since 2017 · 3k+ posts · 3k+ votes
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    Quote from @Peter Walther:

    You might look at Georgia Code § 16-5-40.

    I worked on more than one title insurance claim where an escrow agent disbursed funds before closing so while it's unusual, it's not unique.  Sometimes by mistake, sometimes by direction of the parties, sometimes in an attempt to steal money.

    I believe you and your attorney are already pursuing a lien based on equitable subrogation.  While that might succeed, I hope you're also seeking a lien based on unjust enrichment in case it doesn't. 


    Yes, having the court impose a constructive trust on the assets is the remedy for a claim (under these circumstances) for unjust enrichment. 

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  • Jesse LeBlanc
    OP
    Investor · Atlanta, GA · Member since 2016 · 627 posts · 374 votes
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    Quote from @Tom Gimer:
    Quote from @Peter Walther:

    You might look at Georgia Code § 16-5-40.

    I worked on more than one title insurance claim where an escrow agent disbursed funds before closing so while it's unusual, it's not unique.  Sometimes by mistake, sometimes by direction of the parties, sometimes in an attempt to steal money.

    I believe you and your attorney are already pursuing a lien based on equitable subrogation.  While that might succeed, I hope you're also seeking a lien based on unjust enrichment in case it doesn't. 


    Yes, having the court impose a constructive trust on the assets is the remedy for a claim (under these circumstances) for unjust enrichment. 


     Thank you so very much!!!  This was something that I recall my attorney mentioning in addition to the Subrogation.  I really do appreciate your experience with similar situations and seems as though we're not missing anything here and on the right track.  

    Great news, and I'll know more next week, but I just spent the entire day yesterday going over hours and hours of audio recordings I had from a prior closing, many phone calls and conversations etc even additional very HIGHLY incriminating evidence that I GUARANTEE this Pastor and County Chaplain DOES NOT want getting out to the public and we're going to see if we can finally get this outstanding MAN OF GOD to be an adult and accept the inevitable before it gets worse for us both if they further delay.

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  • Jesse LeBlanc
    OP
    Investor · Atlanta, GA · Member since 2016 · 627 posts · 374 votes
    1y
    Quote from @Peter Walther:

    Sorry, it's Georgia Code § 16-8-3.


     I looked the other up last night but didn't get to reply until now.  I'm looking up your new code to see if it's what I've discovered as well or something new.  Sincerely appreciate it! Always looking to see if anyone knows anything we've missed, can never assume we know everything!

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