basically the mortgage company told him they need the w-2 in order to go forward. I told him its not a good idea but he is so fixated on getting that house. He wants to use a fake statement for last year. I have a terrible feeling he will get caught and be in trouble with IRS. does someone know if they check w-2 statements in the mortgage process
2006-11-29 05:08:32 · 13 answers · asked by dalia 1 in Business & Finance ➔ Renting & Real Estate
The mortgage company probably asked him before for his tax return. I suspect he turned in a fake one, saying he made more money than the real one states. Now they want the W-2 to back up the tax return.
Tell him not to fake one. He'll get caught. I think he'll be under tighter scrutiny from the IRS, but also he may go to prison.
2006-11-29 05:13:13 · answer #1 · answered by teran_realtor 7 · 2⤊ 0⤋
Mortgage fraud is a federal crime. Federal prisons are no picnic.
In almost all cases, if you supply any tax forms whatsoever, he'll be required to sign IRS form 4506T, which will allow the lender to electonically verify that the W-2 and tax returns match what the IRS shows.
There is a huge probability of getting caught. Like 90%. He could literally make his way to closing, and find out after signing the note and mortgage that the closer sitting in front of him is an undercover FBI agent. Once he actually signs the legal documents and accepts the loan, prison time. They do that to people every chance they get.
He'd have better luck getting someone to falsify a verification of employment form, which can be used as a substitute to W-2s and tax returns. But those are also cross-checked.
He may get away with it, then find out 2-3 months after closing that they discovered it. In which case, he loses the house, wrecks his credit, AND goes to prison.
Can't he just get a real job that pays sufficiently to purchase this home? If not, he shouldn't be buying it anyway.
2006-11-29 07:06:21 · answer #2 · answered by Anonymous · 0⤊ 0⤋
There are loan programs out there that do not require proof of income...called STATED income! The only reason why a mortagage company would ask is if youre credit is THAT bad! If your credit is good and they're still asking, DONT DO IT!
You tell that mortgage company to place you in an "ALT A" program! If I were you, I'd find another mortgage company!
2006-11-29 05:27:57 · answer #3 · answered by ALEGNA 3 · 1⤊ 0⤋
Yes, they can and probably will check the W-2, as they have the right to ask for a copy of his tax return. He won't get in trouble with the IRS, but it is grounds for refusing the loan and seriously hurting his chances of getting another one, to say nothing of ruining his credit by giving false information. Believe me, the people who investigate loan applications are smarter than he is. They've been doing this for years!
2006-11-29 05:14:45 · answer #4 · answered by Anonymous · 0⤊ 0⤋
He will get caught for sure! I'm a licensed real estate agent.
First thing we do is send a verification to his employer where they will not be able to verify the amount on the W-2.
Secondly, we check directly with the IRS.
There is a long process to verifying loans, which is why escrow takes 30 days. Tell your friend not to chance it.
2006-11-29 05:17:38 · answer #5 · answered by blazenphoenix 4 · 0⤊ 0⤋
Not only do they match your W-2 to your tax returns, they also TELEPHONE the employer to verify employment. If he no longer works there or has never worked there, then you can be sure that HR will let them know that.
If a loan is advanced based on fradulent information, he can be in a LOT of trouble since fraud is not only a felonious act but also a CRIMINAL offence.
2006-11-29 08:19:11 · answer #6 · answered by boston857 5 · 0⤊ 0⤋
Yes we do...and when we find fraudulent documents we contact the appropriate authorities. Do whatever is required to discourage him from doing that....unless he likes small 1 room places with bars and very friendly room mates.
Here is some additional info. Hope this helps.
2006-11-29 07:04:50 · answer #7 · answered by Anonymous · 0⤊ 0⤋
your friend has a problem with waiting if he is seriously considering forging documents to get a mortgage. it won't work.
try to get a "stated income" or "no doc" mortgage. rate is higher, but he won't get in trouble with the law.
2006-11-29 06:09:09 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Your friend will be going to jail soon...I believe it is a federal offense to lie on those types of forms.
2006-11-29 05:18:10 · answer #9 · answered by Pretty birds ♥ 3 · 0⤊ 0⤋
It's called FRAUD. Bad things happen to people who do this. Things called: arrest, indictment, trial, prison etc.
Don't do it.
These things are examined very closely
2006-11-29 06:09:19 · answer #10 · answered by Anonymous · 0⤊ 0⤋