The appeal to lessen your monthly expenses could convince you to falsify the records when you will apply for a loan modification, but this could have costly long-term effects.
In 2009, the US government instituted stimulus packages for homeowners in order for them to salvage their homes. But it is important that the records are not falsified because these could have long-lasting effects and even lead to criminal indictments. So the loan modification attorney should get accurate information from the applicant.
These agreements will eventually find their way to the government offices and the loan modification inspector will require a tax information release form from the applicant. For example, in order to secure the modified loan, the applicant might overstate their income which will be revealed as soon as the tax return is inspected.
Loan Modification Companies will be the best professionals to advise the homeowners, especially those who earn bonuses. Once you approach companies like Loan Modification Depot, you need to be as truthful as you possibly can because the information will eventually come to the surface.
However, if the tax department gets an idea that the borrower has falsified their records in order to obtain a loan modification, it could be audited. If the borrower is found to be guilty, the applicant may have to pay hefty fines or if it is serious enough, there could even be a jail term.
The loan modification consultant will advise you to be truthful because it is not only the IRS you will be trying to avoid getting into trouble with, but if you are found to have falsified your records during the application process, you could even lose your home if the application is denied.