I got a mortgage approval and got a week away from the settlement/closing table and I lost my job. We had put so much into getting the house and after much agonizing we decided we could still afford it and be financially comfortable. Today at the closing table I signed a document saying that I allow my mortgage provider to check my employment (again!) for verification. It didn't say they would, just said they could. Will they check my employment, again? Is this common practise to check employment AFTER they purchase the house on someone's behalf? If they check my employment and find I no longer have that job, what will they do? Thank you for your advice.
2007-04-02 14:10:20 · 7 answers · asked by John F 1 in Business & Finance ➔ Renting & Real Estate
Well, if you default on the loan they will sue you for fraud. You signed it knowing full well that you had no employer at all.
I would really think about it, is it worth prison?
I would be surprised if they check again w/o something happening to trigger it.
2007-04-02 14:15:13 · answer #1 · answered by Anonymous · 1⤊ 1⤋
John,
More than likely, the bank will not check your employment again. By settlement, the bank has wired their funds to the settlement company or settlement attorney. The papers have been signed, and the mortgage will be recorded in your county's courthouse within a short time.
It's probably something they have signed to cover them IF you were to ever default. This way, no one could accuse them of predatory lending. You probably also remember signing a tax release form back during the approval process. Well, I can tell you they only check those if you default.
So, make your payments on time and in full. At this point, the bank has made a large investment in you and your house, so they just want their monthly check.
Good luck with the job search.
2007-04-02 22:19:19 · answer #2 · answered by Matt K 4 · 0⤊ 0⤋
So long as you honestly filled out the loan application several weeks ago when you had a job and ONLY signed a piece of paper allowing the loan company to check your employment (without fibbing and telling them you still had you job), you have not committed fraud as you have not lied about anything. The house is closed. It's yours once the deed has been recorded. The lender can't take it away from you now unless you default on the payment. It doesn't matter that you lost your job before closing any more than it would matter if you lost your job ten minutes or ten months after closing. So long as you filled out everything in good faith no fraud has been committed.
Make the payments and you have nothing to worry about.
2007-04-02 21:29:55 · answer #3 · answered by Flyboy 6 · 0⤊ 0⤋
Hi,
no, it's not common to check on employment AFTER the closing...maybe a day or 2 BEFORE the closing, if they are suspicious about something. Depending on what state you live in...there could be a 30 day cancel clause. Don't mean to scare you but you wanted the facts. So keep your fingers crossed that they don't follow up on that form.
Good luck!!
R
2007-04-02 22:44:37 · answer #4 · answered by oraahooo 1 · 0⤊ 0⤋
It is common to audit mortgage loans, and that's probably why you needed to sign the form. That said, the mortgage company will not rescind the mortgage, nor can they take the house when/if they do the check.
2007-04-02 21:18:03 · answer #5 · answered by Still reading 6 · 1⤊ 0⤋
That is a mighty big if. If they don't check all you have to worry about is being able to make the payment. If they do check you risk fraud and being sued by the seller and the finace company, along with losing the mortage and being surd for actual damages.
Lets hope they don't check. Next time be honest up front.
2007-04-02 21:17:48 · answer #6 · answered by ttpawpaw 7 · 0⤊ 1⤋
I don't know if they check your employment again.
My mortgage company called me at work several times as a courtesy to remind me that my first payment was due.
2007-04-02 21:21:44 · answer #7 · answered by Anonymous · 0⤊ 0⤋