My buddy lost his job about 3 months ago, yes its not me I actually have a job, and sold my house last year.
He is behind on his mortgage, might lose his house. He has alot of equity in it but cant take it out because his credit turned bad when he lost his job twice in this ****ty Michigan economy.
He bought the house about 10 months to early to take the credit.
However, he is going to take the credit anyway and even if he does get caught he will treat it like a loan and pay it back because he cant get a loan anywhere. If he doesnt get caught he will just pay it $500 a year as normal or pay it in full if he sells his house.
He does have a job with a local energy plant starting in July. He even gets a big sign on bonus ($10,000). So he figures he just has to make it to July and this $7500 would get him there.
Im sure evading taxes is illegal, but this is a government loan, he will payback and is required too. So he isnt "stealing" technically. I told him do it. Even if he gets penalties I belive it is 3% over Federal interest rates, which would be about the standard interest of a regular loan from a bank if he had good credit.
What would the worse case senario be (penalty wise for him)?
Thanks.
He is behind on his mortgage, might lose his house. He has alot of equity in it but cant take it out because his credit turned bad when he lost his job twice in this ****ty Michigan economy.
He bought the house about 10 months to early to take the credit.
However, he is going to take the credit anyway and even if he does get caught he will treat it like a loan and pay it back because he cant get a loan anywhere. If he doesnt get caught he will just pay it $500 a year as normal or pay it in full if he sells his house.
He does have a job with a local energy plant starting in July. He even gets a big sign on bonus ($10,000). So he figures he just has to make it to July and this $7500 would get him there.
Im sure evading taxes is illegal, but this is a government loan, he will payback and is required too. So he isnt "stealing" technically. I told him do it. Even if he gets penalties I belive it is 3% over Federal interest rates, which would be about the standard interest of a regular loan from a bank if he had good credit.
What would the worse case senario be (penalty wise for him)?
Thanks.