The answer is simple. Yes/No.
Well they do not check your status while buying a home. Most of them will actually go to some length if you have a good credit history and 'outstanding' job. ( I wonder out of status bhera kasari outstandin job pako hola :-0000, lu je sukai hoss tara bhanne bhaye bhane huncha hehe)
BUT, why invest on something which would mean nothing coz once you are caught, you might in all probability get a free ride home ( Or is it free?). Instead if you have money to burn, why not instead work towards bringing your status to 'legally' outlisned boundry. Kya taal na suur ko manche baa... tyastai paisa bhe pahila law(y)er bhanwaan lai dakshina chadaune ani yeta uti daya baya garera milaune ani sochne ghar kinne.
For your info, I know one person who got kicked out. I think ignored some legal obligations. And he had bought a home here. Sooooooooo.... why am I blabbering? Isn;t it obvious. Duh!
Indisguise:)