Mtg Brokers snubbing me - Posted by Star

import · August 19, 2003, 6:12am

Posted by Star on August 21, 2003 at 22:39:01:

Scott, thank you for writing to my post. I remember years ago I had no problem getting a mtg. with a mtg broker and thats without tax returns or anything else except letters of rents paid to me. I’m going into this deal with 10% down. I have 3 yrs bank receipts for money deposited in the sellers account for the mtg payments, plus a written letter of prompt, up to date payments which the seller gave me for the mtg broker. 3 yrs. don’t go overnight, surely God, this must give me some credability. I have an envelope almost a half inch thick with receipts. Some years ago, 4 to be exact, I lost some homes because I didn’t do my homework, but the lesson was well learned. That was a bad experience, I lost 80k in equity. I did not use my common sense. I paid the price. At present I an training for a very well paying job and the prospects are very promising. Now, mind you Scott, I don’t want to work for anybody else. You know what they say about a person burnt,…they are afraid of the fire. Thats what it’s like for me. This mtg will put me over the top. If I get this mtg. I will be able to resell on a lease option and get a pay out at the end of a few years. I could pull out of the deal altogether, but that would leave seller in an awful bind, as he is not in this country. When I said I was snubbed by mtg brokers, I meant that they did’nt return my call. In my books, that is not courteous. A simple “we can’t do anything for you” phone call would have been better than no call at all. Don’t you agree? And besides, the seller is depending on me to be able to do this, and buy him out. The money I make has already been reported and taxed but just not by me, however, I do pay taxes on everything I purchase, to the tune of 15%, or 15 cents on every dollar I spend and by taking care of seniors, I save the gov’t tens of thousands of dollars a year which they would have to subsidize if these same seniors were out in nursing homes and the like. Believe you me, the Gov’t loves me. If I can’t get a mtg. I’ll have to take in a partner, or get an account/tax consultant to draft me up income verification. Once again thank you Scott. I hope I’ve cleared up some things. Tell me what you think. Tell me how I may qualify and Isn’t a house collateral for a mtg.?
Star
By the way, I got a call from a mtg broker today. He looked over my stuff, I think he’s interested. Will keep you posted so others can learn.

import · August 19, 2003, 6:12am

Posted by Star on August 19, 2003 at 06:12:41:

Hi thank you all for your replies. Yes I’ve been working very hard at caring for seniors in my home and yes I can keep doing this, but this income is not considered as coming from gainful employment and is not recognized by the banks. As I see it I have a few options here. Please tell me if this is a dumb idea. 1. I can get a financial advisor/accountant to draft me some sort of financial earnings report. 2. I can ask seller to carry on for a while longer till I get organized. Seller indicated that he is willing to be flexible (indirectly he indicated that, though). Make no mistake I am a survivor and I know that this deal can be done. Some yrs ago, I did dabble into real estate investing, hence my reason for dissolving my family unit. Worked like a dog, covered everyones a*se, but no, still don’t please everyone in the family. I had to be super mom (more like super dummy) I’m not belly aching here and neither am I a wimp. Please do not paint that kind of picture of me. I come from the school of hard knocks and I generally make the right move. I only have to make someone believe in me the way I believe in myself. But shame on some of you people for suggesting I’ve been slacking somewhere along the line. I compare myself to the local charlady scrubbing floors to provide for the family. And what is entrepreneurship all about anyway. No one said it was going to be easy. Folks, thats what separates the trail-blazers from the rest of the pack…people like me who buy a lemon and turn it into lemonade. I will be up-front with my seller and my deal will go through. Once again, thank you to all and I hope I’m an inspiration. Thanks
Star

import · August 20, 2003, 8:09pm

Re: Mtg Brokers snubbing me - Posted by Scott_FL

Posted by Scott_FL on August 20, 2003 at 20:09:25:

Star, I am a mortgage broker and beleive me, we are not snubbing you. The lenders take great risk in lending money to someone who has a documented income, let alone someone with no income verification. There are programs for people in your situation, no income\ no asset programs, bank statement programs, true no-doc programs. Keep in mind that because of the greater risk you present, your rates will be higher, the amount of money you can borrow will be lower, pre- payment penalties will apply etc… Go to a hard money lender if you want, they are even more ruthless if you don’t pay. Bottom line is change your situation, get a job of some kind to show paystubbs at least. And also, even if you incorporate, if you own 10% or more of the company, you are self employed in the eyes of an underwriter.

Scott

import · August 19, 2003, 11:02pm

Re: Mtg Brokers snubbing me - Posted by Brent_IL

Posted by Brent_IL on August 19, 2003 at 23:02:00:

I missed your other post and the replies, but since you care for seniors in your home, why don’t you form a company that will hire you to care for seniors and will send you a W-2. You’ll have a verifiable income, and if you incorporate, you won’t be self-employed.

import · August 19, 2003, 9:00am

Re: Mtg Brokers snubbing me - Posted by Tom PA

Posted by Tom PA on August 19, 2003 at 09:00:43:

The last loan that I received was based on bank statements only. Granted it was a Refi but I had only been self employed for a little less than a year. I could have shown them financials but guess what? My net is really low on paper.

Bank statements was all that it took for proof of income.

import · August 19, 2003, 8:43am

Re: Mtg Brokers snubbing me - Posted by Peter_MD

Posted by Peter_MD on August 19, 2003 at 08:43:54:

Star:

I just don’t know how to respond to your posting without being harsh … have thought about it many times since you posted your previous message concerning your situation.

The only suggestion I can provide you is to go to an accountant and have them prepare a complete, and honest tax return for the prior two years. You must then file these tax returns with your State and the Federal government and pay any penalties and interest that are due. This will provide a mortgage broker with something to consider in providing you a loan on the residence you wish to purchase. Right now I can only assume you have not been reporting the income nor paying your fair share of the taxes owed and due to your State and the Federal government.

In this business, the only true bond is your honestly, integrity, and creditibility. You can’t go around not reporting income, but at the same time paying your rent or mortgage and other bills, and then telling the mortgage broker something completely different. The lender surely will attach a lein to the property to provide assurances that the mortgage will be paid, however, they need more … they need something that shows them money is being earned to make the mortgage payments. Until you have that, you’ll never get a mortgage loan … or any loan for that matter.

Consider this. Let’s say the seller is a swell guy and tells you to get a small loan to pay him some money and then he’ll finance the remainder on an owner financed note. He can’t go out and sell that note in the open market because they look at the payee’s (your) income and credit … not the payer’s (his) income and credit. Therefore, he has a note that is not marketable and he won’t be able to sell it to anyone. He just took your problem and made it his problem.

This seller has bent over backwards for several years and you owe it to him and yourself to either do the right thing and get tax returns prepared and filed to use for the loan, or tell the seller the truth that you are having difficulty getting a loan because you have unprovable income.

Maybe you can find a buyer for the house to hook up with the seller, but I can’t see you getting a mortgage broker to find a lender will will make a mortgage loan to you on a residence without provable income for at least two years.

BTW, this is always the problem with people are self-employed … even in this business, because bills need to be paid, taxes paid, and loans need to be based on provable income sources.

… and your integrity will dictate your desire to come clean with the seller and yourself and move on, thus allowing the seller to consider other available remedies to get his house sold and get him the money he wants.

Good luck to you … in whatever you do …

… just don’t go blaming the hard working mortage brokers for something they have no control over and that is really just a problem you have.