Thread: Unemployment

Originally Posted by kerrbaby

My husband and I are about to apply for a loan to put an offer on a house. My husband is working full time under the table and collecting unemployment simultaneously. We will provide his paystubs. Is there any way that unemployment can find out, or that the loan will find out?

Cheating should never come down to whether or not you'll be caught. It's sad that most folks don't do the right thing only because they know there won't likely be dire consequences.

Kerrbaby, when you operate with low integrity, those actions usually come back and bite you in the behind.

Originally Posted by kerrbaby

Is there any way that unemployment can find out, or that the loan will find out?

I'm guessing that you meant "or that the bank/mortgage company will find out?" Probably not, as long as the unemployment income is NOT being shown on any of the application forms. As to the first part, it's unlikely but not impossible. I would be careful about letting the new neighbors know, because if any sort of dispute arises, you're in a vulnerable position.

Where it's gonna bite, and bite big, is at tax time. Either both unemployment and the employer will file reports, or the employer WON'T file one. Either way, it's fraud, against the state (for the unemployment payments) or against the Feds (undeclared income).

Come to think of it, isn't the lender going to want to see copies of the last few tax returns?

When she sits down with the lender, those hard up fools will probably help her continue on her path so they can make some money off of her. She'll be advised to do a nodoc stated income loan, this way she won't have to bring her tax returns, and the lender will pretend like they never knew about the cheating. Awesome. It's behavior like this (lacking integrity) that got us into the mortgage mess we're in.

What your husband is doing is already illegal and constitutes federal fraud. Any time you are getting a loan, your tax returns are subject to review both by the lender's audit department and the IRS, so I would strongly advise you not to make an already bad situation worse.

We have only been collecting since April. My husband started working fulltime for his part-time job the same day he got layed off. In Michigan it's impossible to find work. We know over 10 other people doing the same thing. My fatherinlaw is working and collecting to support is wife that has the highest stage of Lymphoma. She is unable to work and they have to pay for COBRA over 1300/mo.

I don't think people realize why some of us do not have a choice, but to abuse the system. My father in law works 4 odd jobs to support his wife, keep her healthy and keep their property. People pay under the table here, its cheaper than 1099s because theres no accounting fees. Companies can't even afford to pay bookkeepers to deal with audits and figure out who made enough to get issued one. It cuts cost.

We deposit our UIA money as cash. I can provide the first page of our statements that include debits and no information on deposits. The bank won't require full information.

I don't deny that collecting Unemployment is wrong while working over a 40 hour work week. This doesn't make me a unqualified loanee, we will always pay.

I don't deny that collecting Unemployment is wrong while working over a 40 hour work week. This doesn't make me a unqualified loanee, we will always pay.

This DOES make you an unqualified "loanee." You are trying to obtain a loan under FRAUDULENT pretenses. Just because other people are doing something wrong does not make it right for you to do it too. Is that what you teach your children? "I didn't have money for breakfast and I was hungry so I stole it from another kid's locker. Billy and Johnny were doing it too."

And just for the record, at one point in my life I was unemployed and sleeping out on the streets. So I have "been there." I never even considered doing something fraudulent and I worked 80+ hour weeks to get on my feet serving fast food, cleaning houses, etc. Yeah, it's hard, but it's no excuse for abusing the system. You do have a choice.

VegasAgent, you are one of the few. It's good to hear a voice of reason coming from a place of integrity. Kerbaby, you are one of the many. It's this common dumbing down of integrity that has gotten America in the financial disaster it's in now.

Kerbaby isn't the only one thinking this way - it's our politicians, mortgage institutions, and most everyone else. What's sad, is all of the cheating is going to be paid for by those like myself, ones who follow the rules. See, I own tons of real estate and plan on holding on to it all. When folks like you cheat the system, guess what happens? The money has to come from somewhere. Guess where the government digs first? From taxes. Now my taxes go up and I've got to work harder and smarter to make up for your easy way out. You have just as much choice to do the right thing as you do in doing the wrong thing. Difference is, one's easier. I'm tired of paying for the bad choices of others, not just in economics, but in relationships as well. Please do better.

mr1, you are invited to the new country I am thinking of founding. Named appropriately enough, RESPONSIBILITY!

LOL RSVP accepted. Near the equator, please. Hot chics are a plus.