Can an Undocumented Person Buy a House?
Hi, my name is Marina Shepelsky and I am a New York and New Jersey admitted attorney since 2002. In practice for over 18 years. I am admitted in New York and New Jersey court and Federal Courts as well as in the Supreme Court of the United States.
Undocumented immigrants face unique challenges when it comes to purchasing a home. As an experienced real estate closing and immigration lawyer, I understand the legal obstacles that undocumented immigrants can face when trying to purchase a home. Through my years of practice, I have developed an in-depth knowledge of the legal issues associated with this process and am well-equipped to provide guidance and support throughout the entire process.
My commentary in this video is based on personal experience working in real estate and immigration law with many people, undocumented immigrants.
The answer is that it is very hard for an undocumented immigrant to purchase a home in the United States. Here is why:
1. Many don’t have a social security number nor do they work on the books because you only get a social security number if you have a legitimate immigration case pending. And once it is closed and the case is denied, the social security number gives a trigger in the employment search system.
An undocumented immigrant either has no social, limited social or can not work on the books, can not work legally. It is impossible to get a mortgage and with the current real estate prices…How would an undocumented immigrant…even have…tens or hundreds of thousands of dollars without being able to get a mortgage?
Why is a mortgage impossible to get for an undocumented person?
Well, a mortgage bank needs a social and proof of legal status and they also need proof of U.S. employment and U.S. residency. An undocumented immigrant doesn’t have any of the above. Obtaining a mortgage can be a difficult process for many, but it is especially challenging for undocumented persons in the United States. This is due to the requirement that mortgage banks must have proof of legal status, U.S. employment, and U.S. residency in order to approve an application for a loan. As such, undocumented individuals are unable to fulfill these requirements and thus face significant difficulty in obtaining mortgages.
2. You also need tax returns to back up a loan application and which undocumented immigrants likely don’t have. Undocumented immigrants face many financial difficulties due to their lack of legal status. One major issue is the inability to access traditional banking services, such as loan applications, which require tax returns for verification. This leaves many undocumented immigrants unable to secure the necessary funds for basic needs and excludes them from participating in the economy.
3. Home insurance. To ensure a prospective home the insurance company needs social, and proof of legal status, and usually some sort of other status of residency. They don’t have that.
Obtaining home insurance can be a daunting task for many individuals due to the various requirements that need to be met. Insurance companies typically require social, legal, and other forms of residence proof before providing coverage. Unfortunately, for some individuals meeting these criteria can be a challenge.
4. People who are undocumented have no state ID.
They go to the DMV, but the DMV requires an employment authorization which they don’t have. they also require social, which they don’t have. If you are unable to get a driver’s license, you are also unable to get a state ID. Without those, you can’t buy the property, and also, you have no proof of being here legally.
5. Each state requires the transfer documents to be recorded by the social, the person’s name, and get registered, and people have to pay a tax on the sales, and sometimes even on the purchase.
Without a social and tax ID, it’s impossible to register the sale or the purchase. People are very vulnerable in that state. they get their relatives to record the property in their name. they get, you know, defrauded. People steal their property. I have calls coming to my office all the time.
So, what is the solution?
Unfortunately, the solution is to wait to buy property until you are legalized in the United States.
The good news is that Shepelsky Law is here to help! Give us a call: 718-769-6352