If you want to buy a home or investment real estate – YOU BETTER BE HONEST.
As we approached the height of the real estate bubble it seems that Reginald Davis, formerly of Dallas, TX, conspired with Michaiah Pruitt, a real estate investor from Dallas, to make false statements in mortgage applications in order to obtain mortgage loans for Davis to purchase two residential properties from Pruitt. He admitted that he overstated his income, had funds in a bank account and intended to occupy the houses as a primary residence.
So, now some three years later, it seems that Reginald Davis is on the receiving end of his consequences. That little scheme earned him: (1) a felony conviction; (2) six months in federal prison; (3) 6 months of home confinement and (4) restitution of $176,000.
Two other individuals who pled guilty are awaiting sentencing: Jeanelle Richardson and Pierre Sowell.
LESSON: If you’re applying for a loan it is best to be honest, cause EVERY CHOICE HAS A CONSEQUENCE and the consequence of faking a mortgage application to buy real estate is not worth time in federal prison.