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Old 01-25-2008, 11:00 PM
 
609 posts, read 1,875,063 times
Reputation: 230

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I will try to make this short.
I have friends that have been in the USA for 7 years. They are here illegally.
They have managed to buy a new vehicle on credit. They have credit cards, and have financed and outstanding, more than $25,000 in consumer credit other than credit cards.
They work from their home, do not have social security cards and all is billed as if they live in their country of origin using an ITN tax number. They have never paid income tax, never filed income tax, nothing withheld.
They told me they want to buy a home, and their neighbor,(a realtor) said he pre=qualified them for a mortgage.
The income after debt probably works for the home and monthy payment.
Can this be done and how is it done without legality, credit report, ss# etc.
Seems to me the realtor is wrong, but maybe not. Also seems this is how we got into this sub prime mortgage mess.
Your professional opinion is welcome.
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Old 01-26-2008, 02:14 AM
 
Location: Cary, NC
1,036 posts, read 3,629,791 times
Reputation: 503
There are programs for people with ITIN to purchase homes. Consumers can build credit with their ITIN much like with a SSN, their choices are just more limited and terms/rates are not as good becuase of the increased risk.

The difficulty will be in documenting their income if they do not have tax returns. The whole point of an ITIN (individual tax identification number) is for people who can not get a SSN to use when reporting taxes. You do not have to be a legal US resident to obtain one, but you are supposed to file taxes with it.

There may be programs still that take bank statement deposits as proof of income or will allow stated income with a substantial down payment. Likely they are working with NACA, a non-profit agency to stop what they deem "predatory lending" that funds both SSN and ITIN holders legally, with no proof of legal residence necessary. There are other programs/lenders that allow this... mostly South American banks willing to fund these loans as they can not be sold on the secondary market in the US.
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Old 01-26-2008, 08:21 AM
 
609 posts, read 1,875,063 times
Reputation: 230
A really good deal.

I guess the best answer would be for all citizens to renounce their citizenship, return illegally, and not pay any income taxes. The only thing you loose is the right to vote. Sounds like a pretty good trafe off to me.
Thanks for you answer/
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Old 01-26-2008, 10:16 AM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,103,707 times
Reputation: 1008
i dont think NACA does help ITIN holders....but I know ACORN was helping out a lot of ITIN holders.

Bank of america and CitiMortgage have been offering this for a while now.
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Old 01-26-2008, 04:54 PM
 
20,793 posts, read 52,433,355 times
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One quick question, how did the realtor qualify them for a mortgage? I am hoping this is just a typo otherwise it seems pretty fishy to me--unless you are just saying that the realtor told them they could qualify for a mortgage of x dollars based on income and downpayment.
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Old 01-26-2008, 05:04 PM
 
Location: Charlotte, North Carolina
5,137 posts, read 15,103,707 times
Reputation: 1008
some realtors also work as lenders....or they have an inhouse lender they work with
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Old 01-26-2008, 05:37 PM
J&B
 
Location: Boca Raton, FL
9 posts, read 23,120 times
Reputation: 16
Wink Question

Quote:
Originally Posted by rcarrillo View Post
There are programs for people with ITIN to purchase homes. Consumers can build credit with their ITIN much like with a SSN, their choices are just more limited and terms/rates are not as good becuase of the increased risk.

The difficulty will be in documenting their income if they do not have tax returns. The whole point of an ITIN (individual tax identification number) is for people who can not get a SSN to use when reporting taxes. You do not have to be a legal US resident to obtain one, but you are supposed to file taxes with it.

There may be programs still that take bank statement deposits as proof of income or will allow stated income with a substantial down payment. Likely they are working with NACA, a non-profit agency to stop what they deem "predatory lending" that funds both SSN and ITIN holders legally, with no proof of legal residence necessary. There are other programs/lenders that allow this... mostly South American banks willing to fund these loans as they can not be sold on the secondary market in the US.
Question for you - we notice you are in Cary - how is the market there for a CPA and a mortgage broker? Both could work for someone else or self employed - is it a hard market to break into to? (wondering....)
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Old 01-29-2008, 06:36 AM
 
Location: FL 33774
367 posts, read 1,511,136 times
Reputation: 129
If they are giving their overseas address as their home and have income of some kind there they can prove,then they could be treated as foreign (vacation home) buyers, so long as they have some kind of decent downpayment. Also I think if they do a job that is webbased and is not actually based here, all income going to their country of origin, they could argue they are not working here. However, that is not the case, and they are breaking the law. (immigration). IMO. Also they are illegal, because they have been here longer than the visa they came in on was granted for. Six months max probably. Whatever home they buy, however, they risk having that taken off them, should the IRS/Immigration ever find them, but then they are clearly doing something illegal and the realtor must know this too. They all deserve whatever comes their way. I knew a mortgage broker, who is now back overseas, he was about as slippery as any eel you could try and get your hands on.
He did all sorts of things (I eventually found out - falsified documents/lied to clients) and almost got me into a real mess with some clients, these guys definitely have a lot to answer for. As for the realtor, he/she is just the sort of person that everyone loves to hate and gives ammunition to those who would see all realtors as leeches.
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Old 01-29-2008, 07:42 AM
 
Location: out there somewhere in the sticks
133 posts, read 330,528 times
Reputation: 49
Quote:
Originally Posted by rcarrillo View Post
There are programs for people with ITIN to purchase homes. Consumers can build credit with their ITIN much like with a SSN, their choices are just more limited and terms/rates are not as good becuase of the increased risk.

The difficulty will be in documenting their income if they do not have tax returns. The whole point of an ITIN (individual tax identification number) is for people who can not get a SSN to use when reporting taxes. You do not have to be a legal US resident to obtain one, but you are supposed to file taxes with it.

There may be programs still that take bank statement deposits as proof of income or will allow stated income with a substantial down payment. Likely they are working with NACA, a non-profit agency to stop what they deem "predatory lending" that funds both SSN and ITIN holders legally, with no proof of legal residence necessary. There are other programs/lenders that allow this... mostly South American banks willing to fund these loans as they can not be sold on the secondary market in the US.

I am a broker in TN and have never even thought of doing something like this...but have a question, as you seem to be in the know, what are the reprecussions to someone that originates a loan like this? What about the realtor that knows the situation? Knowing this information, shouldn't it be reported? It seems that they could get in a lot of legal trouble since this would be a faudulent file: not to mention that is just seems sleazy.

Just curious if you know.
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Old 01-29-2008, 08:00 AM
 
Location: MID ATLANTIC
7,604 posts, read 17,652,971 times
Reputation: 8099
Sorry, but ACORN is not an ITN loan program. Nor do I believe NACA is either. The first thing Bank of America is going to check is the borrower's residency. If no greencard, then a copy of the VISA showing they are here legally would be required.

Unfortunately, the mortgage crisis has bled over to all financing, with any program that won't fit into the Fannie Mae mold taking a major hit.

Your friends have a problem - and it's much more than not being able to obtain a mortgage. Can you get them to see an immigration attorney? Everything they have worked for is at risk, and the same for their children, if they have any. Besides immigration, their next problem is the IRS. Living and looking over your shoulder is no way to live, something will bring this situation to a head. And that rarely has positive results.
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