Anyone ever made up Income verification?

[laurenleigh]

Like, say you don't have the tax forms.....have you ever just made some up for the sake of the verification? Would the bank check with the IRS? Because I have Turbo Tax and well it would be real easy to....well you know .

 

Just wondering.

[padraig1]

Not to flame you to bad... but are you serious???

[revans513]

Most lenders now require an IRS form 4506 which verifies your tax returns. This would be fraud.

[laurenleigh]

I was just asking. Someone I work with did this and she said she got the house now she's going around telling the other women at my job to do the same thing. I'm sure there are HUGE consequences if you get caught. I am definately not thinking of doing it because my scores are not where I want them to be to buy a house but I would like to have some sort of rebuttal to tell the other women.

[laurenleigh]

Most lenders now require an IRS form 4506 which verifies your tax returns. This would be fraud.

<{POST_SNAPBACK}>

 

 

Ah ha! Thanks.

[OhBoyOhBoy]

I have heard of this..among other things. I took an RE course and the instructor told us he once had a client who made up EVERYTHING!! W-2's Paystubs, even bank statements! Some way or another the mortgage guy found out and he told the RE guy first, and they both told the client sorry we cant do it. So of course the RE guy knows alot of people, and he says later he heard the people just took their stuff to someone else, wound up getting the house, but then a few years later it foreclosed, because they couldnt afford it! NOthing ever came out that they had phony doc, just they were salamanders cuz they bought a house they couldnt really afford!

 

 

BTW- I in no way condone this type of behavior!

[DallasLoanGuy]

mortgage fraud is serious business. not worth it.

dont do it

[laurenleigh]

As I said, I AM NOT THINKING OF DOING THIS. I wouldn't put myself in that kind of position. I'll just wait unitil I can do it legit.

[FHAMTGBROKER]

If it feels like it's wrong...chances are it is.

[opiinc]

No need to make anything up just go stated income, or even better yet no doc... Being self employed and being able to write off everything is great ... Until it comes to time to get a home loan. This is where a stated income program comes in

[Chitwoodc]

Like, say you don't have the tax forms.....have you ever just made some up for the sake of the verification?  Would the bank check with the IRS?  Because I have Turbo Tax and well it would be real easy to....well you know .

 

Just wondering.

<{POST_SNAPBACK}>

Bad, Bad, Bad...

I had a borrower once forge a paystub from a company she worked at for about 2 weeks. She was fired for....stealing checks. Anyway, we figured out she lied and was trying to commit fraud to get into her house. We ended up doing the loan with just her husband...he was legit. She got her house but I think she also got a case too! A few weeks later a police detective came in and had me do a photo line-up, she had been arrested. The employer was prosecuting and they were also thinking of filing charges along the lines of her obtaining financing fraudulently...something Federal.

With so many different programs available today...there's no good reason to make stuff up.

[OKC Loan Processor]

I had an underwriter tell me the other day they always process the 4506T (request for transcript of tax return) on self employed borrowers or any borrower in a profession that traditionally writes off expenses.

I used to think it was random on who they actually processed them on.

[nevermiss]

Yes, it is common now for lenders to run the 4506-T. I just got a memo from Indymac saying that they will be continuing to bear the cost of running the 4506's in an effort to crack down on fraud. I used to work for a guy that would pull hokey stuff like phoney tax returns. I even watched him counsel a client and his accountant on what he needed on the fake tax return. BAD BAD BAD. I left his employ after that. I don't need to be associated with monkey business like that. You don't either!

[FHAMTGBROKER]

Most sub-prime lenders will not require a 4506-T if you are going stated. The A paper lenders will. The 4506 is only good for 30 days from the date you signed it. "A" paper lenders will only use the 4506 as a precaution if they feel they have been fraud or first payment default.

[kwimberl]

Most sub-prime lenders will not require a 4506-T if you are going stated.  The A paper lenders will.  The 4506 is only good for 30 days from the date you signed it.  "A" paper lenders will only use the 4506 as a precaution if they feel they have been fraud or first payment default.

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Just as a point of clarification, the 4506-T is good for 60 days. All of the above posts are mostly correct. Some A paper lenders will validate all 4506T's that come through. Some only do a small percentage for audit purposes. Some never do them at all unless there is suspicion of fraud. Most subprime lenders do not require a 4506.

[FHAMTGBROKER]

Most sub-prime lenders will not require a 4506-T if you are going stated.  The A paper lenders will.  The 4506 is only good for 30 days from the date you signed it.  "A" paper lenders will only use the 4506 as a precaution if they feel they have been fraud or first payment default.

<{POST_SNAPBACK}>

 

Just as a point of clarification, the 4506-T is good for 60 days. All of the above posts are mostly correct. Some A paper lenders will validate all 4506T's that come through. Some only do a small percentage for audit purposes. Some never do them at all unless there is suspicion of fraud. Most subprime lenders do not require a 4506.

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I thought it was for 30 days, thanks for the clarification!!!!