Posted by Ron on December 02, 2002 at 17:34:01:
Thank you for the advice and for keeping my ass out of jail.
Can you fake an income? - Posted by Ron
Posted by Ron on November 29, 2002 at 23:57:06:
Can you fake an income?
I want to do a verified income loan and wanted to know is there a way to show that you have income, even though you have no true 9-5?
Re: Can you fake an income? - Posted by Peter_MD
Posted by Peter_MD on December 02, 2002 at 11:50:04:
Ron:
At first I was going to let your post go. You were provided some good responses, however, since this is an educational forum, I have decided that I would elaborate a little more to explain the why and how.
You asked:
(a) Can you fake an income??and,
(b) I want to do a verified income loan and wanted to know is there a way to show that you have income, even though you have no true 9-5?
The answer to (a) is simple, no?you have been told several times in the responses?pure loan fraud and the penalties could be imposed under statute up to 10 years in prison and and up to $10,000. fine. There are many ways to uncover loan fraud. The biggest is as a result of late or non-payment of a recent loan (considered less than 24 months after the loan was placed). There have been numerous individuals prosecuted for loan fraud from fake W-2s, fake tax returns, and fake bank accounts. Anyone who gets involved with loan fraud have to keep looking behind them to ensure they are not being targeted for investigation. Unlike Nike, “just don’t do it”.
Now, the answer to (b) is more involved. With today’s relaxed lending rules and regulations, my lender (mortgage broker) touts that he can almost get a loan for anyone “who is not dead”. I don’t know how he does it, but I do know he shops around with over 30 lenders to get the loans. The loan may not be at the best interest rate, or for the entire amount requested, or for the length of time requested, but I do know he will get a loan. If we can’t beat it by using our private investors, the borrower usually will take the loan and clean up their credit (with out help?over time), and refinance for a better loan with the rates and terms requested within two or three years. I do know you have to have some sort of income (social security is good), be living within your means, and have some sort of credit (good, bad, or in between).
Do the right thing for the right reason. Go to your next club meeting and ask around for a referral for a mortgage broker. Talk to them and, who knows, you may be able to add them to your team now or later.
Just a suggestion?good luck to you?
Re: Can you fake an income? - Posted by Zack
Posted by Zack on December 01, 2002 at 22:56:11:
I’m sure you can, and you can go to jail for it too. You know it’s things like this that give investors a bad name.
Re: Can you fake an income? - Posted by Rob FL
Posted by Rob FL on November 30, 2002 at 09:14:28:
Your banker should be able to tell you what forms you need. Probably 2 years of tax returns, 3 months of bank statements, and the last quarter’s profit & loss statement. Ask them what you need to provide.
Fraud? - Posted by Steve D
Posted by Steve D on November 30, 2002 at 24:55:16:
Any decent printer can fake pay stubs, but that’s fraud. I’d suggesting avoiding the word “fake”.
I guess if you have cash, you can start a company, and pay yourself a legitimate salary to manage it (even though you don’t work 9-5 for it), but then you are paying federal taxes, medicare, social security, plus employers contribitions, state unemployment etc for no real reason… If it’s an S-Corp or LLC you may be able to write off the losses against your personal return. If the sole purpose of your company is to merely show income (i.e. your company is not engaged in activities to at least try and generate a profit) then I’m not sure on the legality of this…