-Apply for house loan with false numbers...
-Get the loan and move in...
-Then get caught with the false numbers...
I saw it happen with grossly exagerated numbers. I just wanted to know what could happen to the borrower if they are caught after moving in.
2007-07-05 16:09:02 · 5 answers · asked by HonestGuy 2 in Business & Finance ➔ Renting & Real Estate
Actually, it is my exwife that did it! LOL
She more than doubled her salary on the app. and said our joint house was worth 20% more and forgot to mention 1/2 of that value was mine. (only her name is on the loan app)
2007-07-06 00:33:10 · update #1
You could be prosecuted for bank fraud. A common misconception is that you can lie out your backside on a "no doc" loan and get away with it. You might be able to stretch the truth a little but if the loan is audited, especially by the regulators, you could be in serious trouble.
Trying to inflate the numbers on a conventional loan isn't likely to succeed as the underwriter will be verifying the numbers before the loan is approved. Attempting it on a Federally backed loan (FHA, VA, etc.) is a Federal crime and can attract up to 10 years in a Federal prison.
2007-07-05 16:18:39 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Yes.. Loan fraud..
In most cases such misstatements are an intent to get a loan that the debtor cannot afford... in which case you may never get out of it because a fraudlent debt cannot be discharged in bankrupcy... (if it is not a criminal act)
However, if you can actually pay.. you might be ok.. that said If they ever find out you could be put in a different risk category (higher) and your interest rate and, hence, payments would go up so you would be much worse off than if you told the truth in the first place..
2007-07-05 23:32:36 · answer #2 · answered by Attorney 5 · 0⤊ 0⤋
Do you think just because you are in the unit now that you have some sort of immunity? You lied to get the loan. Banks are super-sensitive about forclosures right now and don't want any more bad loan products out there. My guess is that they will go after you for fraud before they have to deal with your forclosed property because you lied and you can't really afford it.
2007-07-05 23:46:56 · answer #3 · answered by Anonymous · 0⤊ 0⤋
As long as the payments are made on time and in full, it'll probably never come up. But if there's ever a problem and the deceit is discovered, uh-oh!
2007-07-06 09:49:45 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Loan could be rescinded charges could be filed for false application and lying on a contract. as in fraud.
2007-07-05 23:19:15 · answer #5 · answered by Pengy 7 · 0⤊ 0⤋