Legal Question in Real Estate Law in California
Correction of social security number
My question is for a friend of mine that does not speak english. Several years ago, this person purchased a home while being an illegal in this country. He used a fake social security number. This person has since acquired his legal alien green card and a real social security number. The question is ''will there be legal or financial repercussions if he now reports the real social to the I.R.S. as well as to the mortgage company?
2 Answers from Attorneys
Re: Correction of social security number
If several years have passed without any inquiry or complaint about the false number from any official source, and if your friend is now filing tax returns using the correct number, it is in my opinion unlikely that any government authority is going to come after him for the past "mistake."
The main purpose of a buyer supplying a social security number in a real-estate purchase transaction is to enable a credit check. A seller must also furnish his SS number due to rules relating to the withholding of state taxes in California. So, your friend may be guilty of filing a false credit application. If his lender is being paid and/or the friend was credit worthy and/or no credit application was relied upon, again, no likely problem.
If your friend is taking a tax deduction for mortgage interest, there could be a discrepancy between reports from the mortgage company to the IRS and his tax returns which would result in an audit, but I think the chance is relatively small.
As far as I know, the buyer's social security number is not a part of any permanent public record and having given a false SS number will not affect the validity of a recorded deed.
Your friend should not have done this in the first place. I am not in a position to recommend as to whether to leave well enough alone or to notify anyone.
Re: Correction of social security number
You need to ask this question of an immigration attorney who knows what happens to win the legal under the same circumstances as your friend.