The new laws that took place this year regarding illegals and employers are starting to show the effects on communities. Dozens of deals are dropping in my lap daily. But …
Here’s what’s happening. So these illegals are going into foreclosure because they lost their jobs well because they are illegals. The go into foreclosure and they are in a short sale situation. No income, cannot get employment. So I thought, this is great - I want these houses. They are perfect - great rental communities, need tons of rehab, lots of foreclosures in these areas but can a short sale really work. I can prove a hardship but is it legit? These people are bailing, vacating the houses because they think they are going to be in trouble with the law because of their legal status. Back to my point - are these good to pursue and how would I exactly pursue them with the lenders? Not sure how honest I am supposed to be on this one.
First of all, lender would have had to at least verify an SS# or Tax ID number on these buyers. If you are saying that these people are defaulting on “liar loans,” I’d say you have all the leverage with the lender if you simply be truthful about the legal status of these borrowers.
The lenders won’t be able to pursue payments as they weren’t supposed to approve these loans in the first place. I think a simple mention of the illegal status of the homeowner on the hardship letter is enough to get them approving anything that comes along! SOunds like the perfect harship situation for great short sale closings.
If the homeowner is concerned about having a foreclosure on their credit, then that means they have a social security number or tax ID number that is legitimate and has a legitimate concern about their future credit situation.
If an illegal worker is afraid of getting in trouble with INS because they are going late on their home loans, then it’s a saavy financial and survival decision for them to walk away. No concern for their credit future as it is tied to an unverifiable SS or tax ID number anyway.
The process for becoming a legal citizen is when they come to the USA they apply got and get an EIN for work purpose only. What happens is, they get it on a SScard and it states for work only. But banks do not require to see the SS card. They treat it like a SS# and use it. Many never even apply for a SS# since you need to wait 5 yrs to apply for citizenship.
Now the smart ones, apply got ctiizenship and get a new SS#. The old EIN is still active and usually they go and buy tons of stuff on credit and let it all charge off screwing the creditors because they have there new SS# which they will use and establish over time.
Saying they are illegal will not help much. Its still a hardship letter.