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A full credit check shows the latest federal filing....which has income

The IRS where the asset and income information comes.

as an ex-landlord of decades....I always got full reports and the income is there...even current or most current recorded employer.

this is exactly the same documents used by Medicaid to determine eligibility. That low income is required by Medicaid. If under age 65, the eligibility requires an income not greater that the current poverty level plus 50 percent (might go up next year).... basically that is less than $18,000 income. If over age 65, there is an income and asset max required to enroll, and assets can be used to recover costs

regardless, setting up the holder of the note for fraud is not right...even if you can “put one over” on the originators

signing on a deathbed sounds like a totally bonus thing. No one can run that credit check without the signature...FIRST.
so, she never was checked on. Serves the originator right for failing to do due diligence
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worriedinCali Nov 2019
None of that is relevant here though. The potential creditor will not know the person is on Medicaid. There are a lot of Medicaid eligible people who aren’t on Medicaid.

And yes my MILs credit was run before she co-signed for the loan on her death bed. It was run when they sought pre-approval for a loan.
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If you guys want to talk about fraud.....my late MIL retired and on a small fixed income co-signed on my BIL’s house (that he just forfeited in his divorce) from her death bed. The loan people came out to the house with their notary and she signed the papers ON HER DEATH BED (hospice bed in the middle of the living room). If you think people on Medicaid won’t be able to co-sign for a loan, you are sadly mistaken. Not everyone on Medicaid is destitute & has poor credit.
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Source of income would have to be substantiated, so even if co-signer has a good credit score, it would not fly. In any case, knowing full well that the loan would never be repaid is outright fraud.
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worriedinCali Nov 2019
Yes it would fly and it wouldn’t be outright fraud unless the person truly has no ability to repay the loan. We shouldn’t assume the person can’t afford to pay back the loan because people on non-institutional Medicaid can and do have ASSETS. If they have Medicaid for insurance then their eligibility was determined by their monthly income but not their assets.
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Why would you think the originator would NOT run a full credit check? Even a private person can use an agency that will look to income as well as score.

if you know the person you want to co-sign cannot pay if you default....that is pretty much fraud.
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worriedinCali Nov 2019
A full credit check wouldn’t show Medicaid. People on Medicaid can and do do-sign for loans and take out loans. All they need is to meet the financial requirements .
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"A cosigner’s responsibility is to pay back the debt if the signer does not, plain and simple, and that can include late fees and collection fees." Having someone on Medicaid cosign knowing full well they would never be able to pay back the loan seems like fraud. Not sure whether the lender runs a credit check on the cosigner, but I image they'd see they have no assets.
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I seriously doubt the loan originator will accept that person as co-sign.

typically the person getting a loan only needs a co-sign when their own credit and/or income will not be sufficient for the bank, car dealer..(or whatever institution is originating the loan). A co-sign that has an income so low to qualify for Medicaid will not be acceptable....if this is also an elderly person....this becomes even more problematic.

so, the answer is...sure they can sign but probably not going to get the loan with that co-sign.
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worriedinCali Nov 2019
The loan originator wouldn’t even know that person is on Medicaid though. It’s the credit score that matters.
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