It used to be big, then stated income for W2'd employees came along and it slowed down. After ADT sued Novelty Pay Stubs dot com it slowed down even more. HINT: It's coming back. It took less than 5 minutes to find just the solution at http://www.fakepaycheckstub.com/ where I can purchase the software and not only do it myself but help my buddies out, too.

The conclude with "if you are looking for fake pay stubs or fake payroll stubs then we have the fake cheque stubs and fake ids for your entertainment needs"

So who owns it? I don't know ... yet. Their mailing address is San Jose, their whois information is private and a ping to their IP would only go to their server. They shouldn't be too hard to find, though, they accept online payments.

Is it illegal to sell software like this? No, but it is illegal to create documents intended for illegal purposes. Unfortunately lowlifes can hide behind the "we did not create the document" and "we told them this was intended for entertainment purposes only".

Try doing a Google search for "seasoned trade lines". You'll be blown away. No it's not illegal to add someone to or be added to a line of credit. It IS, however, highly illegal to use that credit to increase your credit score for the purpose of obtaining credit from a credit. 

Loan Officers - you may also be held liable for not catching your applicant so be careful. If you don't know how to see how long someone has been an authorized user simply ask the creditor for verification. I haven't seen it yet but there has been talk of not considering authorized user credit on authorized user's credit reports. Of course, once again, the innocents pay the price for the pieces of trash out there. Consider the husband and wife where they share each other's funds and invariably there is a sharing of credit cards, too. I'm on my wife's Sears account and she's on my Lowe's account. 

Tax returns are pretty simple to debunk. Ever heard of a 4506? Pretty much standard on all files these days. What is a 4506? Simple put it is an IRS created form giving the holder (your lender/broker) the ability to request a copy of your tax returns directly from the IRS for the purpose of verifying taxes paid and income reported. This pretty much ends the income tax fraud like we used to see.

Lenders, like my Novation Mortgage, have pretty strict underwriting guidelines (we even employ them when we are brokering a loan) including the use of such automated fraud detection services like DISSCO from Interthinx which we use on every file.

Brokers beware--just letting one through your hands could mean a buy back. With lending guidelines tightening up keep an eye out for mortgage fraud using documents to convince the lender to make the loan. If you are a loan officer and you involve yourself in this treachery you are making yourself a mark for everyone. DON'T DO IT.

Real estate agents you can help. Sometimes buyers confide in their agent things they wouldn't confide in a loan officer. If you hear anything suspicious it is your responsibility to report it. That means from the loan officer to the buyer--any suspicious activity should be reported immediately. Don't make the mistake of thinking only loan officers who work at mortgage brokers commit fraud. Direct lender and bank employees do it as often if not more often than broker employees.

Also, selling agents, beware of One Stop Shops or agents who are also loan officers. Other than the fact that it is disgusting they have much more at stake and are much more likely to "push it through".

Buyers--be careful about loan officers who work inside the real estate office. If you sign documents which contain statements of misrepresentation it is you who hold the ultimate responsibility. If you apply two other places and get turned down but apply at a third location and get approved with no trouble for a good loan with great rates be suspicious.

Right now there are no conventional 100% real estate investor loans so if you get approved for one, especially for rates near or equal to the rates you see quoted in the paper and online, you're probably about to commit an old favorite: Occupancy fraud.

Be careful. Use common sense. Don't do anything I wouldn't do--it's not worth it. You will be caught.

Copyright(c)2008 Ken Cook. Ken is a real estate investor, trainer, author, speaker, and prolific real estate blogger. He is also Director of Operations for Novation Mortgage and certified in Fraud Detection and Prevention from Interthinx and the Mortgage Banker's Association. Novation is located in Marietta, Georgia and specializes in FHA home loans as well as Fannie Mae and Freddie Mac for real estate investment mortgages and small commercial loans nationwide.