My wife is the co-app on our FHA loan and her mother wants her to lie and say we are seperated so she can be a co-app on her FHA loan. Will there be legal recourse for such a thing? will this screw us during tax time? We both know this is stupid and she hoped her mom would have been declined by now but has not. So we are both getting worried.

Sounds a little bit like a Conspiracy to commit Bank Fraud.

As Vermont said.
See you in jail!

Is basicly what I would expect. Just wish her family would realize they are stepping way over the line just asking of something so stupid. I am still trying to stop this anyway I can. This info should help further my cause.

Sounds to me like waiting for the problem to go away is not a good plan. No matter who anyone is, nor their relationship to you, that person has no right to kid glove treatment when you deservedly tell them to 'Pound Sand!' And you should tell them, definitivly so. After all, you are the Captain.

What a bizarre thread.

When a closing takes place the signatory authorizes the lending entity to pull IRS tax records. In the event this verification is performed the "plot" would be discovered. If I understand what's being attempted here it would appear as "Defrauding a federally insured institution". So yes, it is a felony, but one that's prosecuted on the federal level, and not necessarily on the local level. This is my just opinion and certainly not a legal opinion. You might suggest they get fitted for their orange jump suits.

Now is your chance Captain....Every husband's dream. The Ol' lady and her nagging mother in one step. Freedom...Liberta! One anonymous phone call is all it will take.

Your question is: Is this a Felony. The answer is YES. Is there Legal recourse? YES. Will they get caught? You better hope not. Should you be worried? YES.

I'm probably going to take heat for this but....c'mon. Be a man and stand up to this. This is your life not your in-laws. Be the man of the house and put a stop to it now before your in-laws create serious havoc in your home. By the way, this WILL affect your relationship with them and your wife. Permeneantly.

Paula Cole's lament is so true. What happened to the men in our society? Where have all the cowboys gone?

Seperated or not, a person cannot (I believe) take out a FHA loan if they have been on one within the last three years. It will show on a credit report. Also, and not to get too technical - by your wife saying "seperated" would raise additional issues during a transaction, and still probably (possibly) would require your signature on documents. Since tech you would still be married, and in some states you'd have dower rights, that would require the spouse to sign off on certain things. So, yeah, don't do it, and tell them not to do it. Fraud City.

Totally not legal advice.

Possibly she could be a cosigner instead of a coapplicant. This would allow her income to be considered.

Here's a link to an article that explains it.

http://www.ehow.com/facts_5173114_fha-loan-requirements-cosigner.html

But . . . . if you still do it, despite our advice to the contrary, please do let us know how it all turns out.

I think federal prisoners are now entitled to hi-speed internet service (a human right) behind the big thick walls, so we should stay in touch.

I'm sitting here scratching my head, your wife can co-sign as many FHA loans as she wants - as long as she is a blood relative. We see parents co-sign an FHA loan for all of their kids at one time. Make no mistake, when you and she sign, you are promising to make the payments if the owner occupant borrower defaults. If they default and you don't step to the plate, your credit will be at risk, as well as, any assets you have. The only reason her mom would want her to lie is to say she is an occupant co-buyer, and then, yes, that is the number one type of fraud in our industry now. So much so, as of June 7, 2010, Fannie is requiring post occupancy verification. If anyone still thinks it's okay to twist the rules, they're a day closer to picking out their orange jumpsuit.



Not so. Any one person can only have one maximum LTV FHA loan at a time. There is one exception, and that is a property settlement agreement where it can be demonstrated the party purchasing has been out of the marital home (with an FHA loan) for a period of 6 months. Verified by bank statements from 6 months ago, or a piece of mail received. But someone can have multiple FHA loans, but only one of those loans may be at a 96.5%. (Obviously, as values rise and fall, it is possible, but not at the time each loan is taken out).

Sometimes dealing with an inlaw is not as simple as "manning up." Discretion is often the better part of valor, so just tell your wife that there are too many checks and balances in place right now for this plan to EVER work. Blame it on the housing crisis and all the laws that have been passed recently, but get yourself out of this.