I'm freaking the fuck out!

[96ukssob]

Story: End of march I applied for a mortgage, got a approval and found a house. Made an offer, offer countered then accepted in early April. Sent in all the docs for the mortgage and was told I need to get tax transcripts. After pleading with the IRS they pushed my transcripts through faster for the mortgage company, so they would get them by this week or next.

The broker I'm working with said she would have them start on underwriting the loan prior to receiving the transcripts, but I would have a definite answer by LAST Thursday EOD. We were supposed to close last week but pushed it till end of June encase something got held up. The sellers have already moved and to keep them in contract so I can get the $8k tax credit I am leasing the house from them... as well as leasing my own apt!

Being 3pm on Wednesday, still NO word from the broker. She said they are busy but trying to get me an answer. I'm fucking PISSED as I have to keep spending money on renting the house and my own apartment.



I'm stressing out like crazy over this and I can't stand it. I have no clue now if I have to rent a new apartment or move into this house and I'm running out of time to secure a moving company or find a new apartment.

I was told before I was good to go for this loan, but every time I talk with them, things change and saying they can only use a fraction of my income, blah blah blah. I know the lending market has changed, but for christ sake, just let me know already!!

Plus my GF is freaking out and then I have moving companies, electric and gas calling asking about when to have someone come out, etc., and I have to keep saying "I DONT FUCKING KNOW!!!"

I'm just pissed about how much money I have spent and if I don't get this loan, I am going to be more than heated after selling my car and loosing a bunch of cash, then paying for inspections, lawyers etc.



Word of advice... buy property in CASH

[LoveSandra]

Originally Posted by bossku69

Word of advice... buy property in CASH

sorry to hear and good advice!

[SleazyDream]

good luck

[Va2k]

Good luck I remember when I bought my house before I lost it after the divorce, it was almost the same as you're going through. You should be ok though! Good luck and hang in there.

[WeDesignet Lisa]

brokers SUCK. period.
you need to finance directly thru the bank; every person I've heard of that has used a broker has gotten screwed one way or another.

[onwebcam]

Let me take a guess here. You want a conventional loan and you are self-employed? Anyway, bank statements are far better to use than tax forms. Most people write as much as they can off and unless you know exactly what the underwriters can add back in for income before you file you're at a loss. It will mean a bump to the rate but try bank statements.. You'll likely have to try another lender . Getting an underwriter to forget what they have already seen is like telling the jury to forget about you saying you did it..

[FreeHugeMovies]

Originally Posted by WeDesignet Lisa

brokers SUCK. period.
you need to finance directly thru the bank; every person I've heard of that has used a broker has gotten screwed one way or another.

That is a terrible statement. I would HIGHLY recommend a good broker over a bank employee. You don't know what you are talking about.

[michael.kickass]

That sure sucks!

[96ukssob]

Originally Posted by onwebcam

Let me take a guess here. You want a conventional loan and you are self-employed? Anyway, bank statements are far better to use than tax forms. Most people write as much as they can off and unless you know exactly what the underwriters can add back in for income before you file you're at a loss. It will mean a bump to the rate but try bank statements.. You'll likely have to try another lender . Getting an underwriter to forget what they have already seen is like telling the jury to forget about you saying you did it..

Actually no, Im going with FHA loan and they are not counting any of my 1099 income, only W2... and have myself on W2 employment since August of last year.

There are no red flags that come up, my debt to income ratio is low, credit is solid, more than enough funds to cover the costs to move in, etc., its just this tax transcript bullshit that is holding everything up and now I find out that they will only count what I made from August to Dec of last year as my "income" even though I am a full time employee.

I'm going with an FHA loan since I am buying it myself and dont have 10% to put down. Plus conventional requires a much smaller DTI ratio and any 1099 income is a huge pain in the ass to deal with, so if I keep it just W2 the FHA will be fine.

Honestly this is crap! They've had my info now for well over a month and there is no reason they can't just tell me yes or no. Its not like having the tax documents is going to change their mind

[DateDoc]

Sucky situation. I know a real estate broker that is trying to close on her own home and the mortgage company is waiting on her tax return to be processed by the IRS. Sounded odd to me but she said it was one of the new regulations.

[thickcash_amo]

Sorry to hear that! Hopefully you will get an answer about something soon..I'll keep my fingers crossed for ya ;)

[96ukssob]

Originally Posted by DateDoc

Sucky situation. I know a real estate broker that is trying to close on her own home and the mortgage company is waiting on her tax return to be processed by the IRS. Sounded odd to me but she said it was one of the new regulations.

Mostly all companies started doing this about 3-6 months ago. I guess to many people were lying on their taxes then filing something different... who knows.

The problem is the IRS is so backed up from everyone filing for their tax credits that normally whats takes 2 weeks is now taking 4-6 weeks to process

[Oracle Porn]

around here unless you have %40 down you don't get a mortgage period.

[96ukssob]

Originally Posted by Fungus

Good luck I remember when I bought my house before I lost it after the divorce, it was almost the same as you're going through. You should be ok though! Good luck and hang in there.

Originally Posted by SleazyDream

good luck

Originally Posted by thickcash_amo

Sorry to hear that! Hopefully you will get an answer about something soon..I'll keep my fingers crossed for ya ;)

thanks

I'm supposed to hear back tomorrow... hopefully. I contacted the broker and told her I need an answer, otherwise my current lease will expire on my apt and worst case is I will have to move to a new apt if I dont get the loan instead of staying in the one im at... chances are i wont hear until Friday that she has no update

[kane]

FHA is notorious for dragging their feet. When I was a kid my mom bought the house I grew up in on an FHA loan. When I got out of high school she decided to sell it. She found a buyer, offer was accepted and it took about 6 months for the paper work to go through. She actually lost the first buyer because they got sick of waiting. Luckily the second buyer wasn't in a hurry and loved the house so they were willing to wait.

[fatfoo]

Good luck with your problems.

- Fatfoo

[96ukssob]

Originally Posted by kane

FHA is notorious for dragging their feet. When I was a kid my mom bought the house I grew up in on an FHA loan. When I got out of high school she decided to sell it. She found a buyer, offer was accepted and it took about 6 months for the paper work to go through. She actually lost the first buyer because they got sick of waiting. Luckily the second buyer wasn't in a hurry and loved the house so they were willing to wait.

the broker (and i heard this from others too) is that FHA loans are processed faster than conventional because the loan is backed by the govt not a investor/investment bank.

im just sick of the BS and what i hear from the broker. things change almost daily and its to the point where it might be better to even walk away because Ill be paying rent for an apt and leasing this house from the buyer... not worth that much money.

the whole system is retarded. a "preapproval" means almost nothing now other than "even if we approve you, this is the maximum amount we will consider." it would make more sense to get the loan FIRST then go find a house, then do all the details like inspections, etc. rather than this way of finding a home, putting down a contract, breaking a lease... then possibly having to reverse all that. complete nonsense

[LiveDose]

Good luck man sounds like you are almost there. Hang tight.

[Juicy D. Links]

can we see pics of you girlfriend?

[96ukssob]

Originally Posted by Juicy D. Links

can we see pics of you girlfriend?

shes not happy with me right now, but maybe when she goes to work tomorrow ill post a few

[tonyparra]

Originally Posted by fatfoo

Good luck with your problems.

- Fatfoo

actually i hope it doesnt work out for you. fucker.

[96ukssob]

Originally Posted by tonyparra

actually i hope it doesnt work out for you. fucker.

WTF did I ever to do you? fag.

[tonyparra]

Originally Posted by bossku69

WTF did I ever to do you? fag.

<- says it all

[Marcus Aurelius]

Originally Posted by bossku69

Word of advice... buy property in CASH :

That has been my motto.

Don't borrow into things you can't afford to buy outright.

[96ukssob]

Originally Posted by Marcus Aurelius

That has been my motto.

Don't borrow into things you can't afford to buy outright.

yeah, but it will take some time to save up a few hundred grand.

learned this lesson with buying cars unless you get 0% APR

Originally Posted by tonyparra

<- says it all

ok buddy, whatever you say

[Atticus]

Originally Posted by bossku69

Word of advice... buy property in CASH

That's horrible advice. With historically low interest rates you would be insane to purchase a home entirely in cash.

We wont even get into the tax deductions on mortgage interest....

[kane]

Originally Posted by bossku69

the broker (and i heard this from others too) is that FHA loans are processed faster than conventional because the loan is backed by the govt not a investor/investment bank.

im just sick of the BS and what i hear from the broker. things change almost daily and its to the point where it might be better to even walk away because Ill be paying rent for an apt and leasing this house from the buyer... not worth that much money.

the whole system is retarded. a "preapproval" means almost nothing now other than "even if we approve you, this is the maximum amount we will consider." it would make more sense to get the loan FIRST then go find a house, then do all the details like inspections, etc. rather than this way of finding a home, putting down a contract, breaking a lease... then possibly having to reverse all that. complete nonsense

Things probably have changed. My mom sold her house that was on an FHA loan back in 1990 so it has been a while. Also, I think part of why they dragged their feet is that she was selling it for a fair price, but FHA seemed to think it was worth more and they wanted her to increase the price. Even after she told them that she had it at a higher price before, but got no offers they still weren't happy.

[96ukssob]

Originally Posted by kane

Things probably have changed. My mom sold her house that was on an FHA loan back in 1990 so it has been a while. Also, I think part of why they dragged their feet is that she was selling it for a fair price, but FHA seemed to think it was worth more and they wanted her to increase the price. Even after she told them that she had it at a higher price before, but got no offers they still weren't happy.

its almost backwards now and they are REALLY strict.

they will not give you the loan if the purchase price exceed the FHA appraised value. These are appraisers that the FHA department has, so you can't pick them out. Finding that out, you will see houses for sale that will say "no FHA or VA loans" because of this.

So if you find your dream home for say $450,000 and others in the area sold for $480k+ with similar comps, but yours is appraised for $440,000, you can not even offer the seller $10k outside the deal. Makes no sense.

Plus they will not roll in closing costs like they used to. When my friend bought his place 2 years ago, he rolled in closing costs into the loan and only paid the 3.5% down... must be nice and he got his loan in 3 weeks

[TrainWreckContent]

damn that sucks man i hope it all works out

[will76]

Originally Posted by bossku69

Word of advice... buy property in CASH

The moral of the story isn't buy with cash, but.... don't move into a house that you are buying until AFTER you bought it, signed the papers and went to closing.


You seem to get yourself into a lot of bad situation. Do me a favor bro, next time you go to make a big decission like buying a house, giving a friend of a friend 25K on some guaranteed 12% ROI investment etc. Contact me and run by me what you plan on doing. I can save you a lot of grief.

[will76]

Originally Posted by bossku69

Actually no, Im going with FHA loan and they are not counting any of my 1099 income, only W2... and have myself on W2 employment since August of last year.

There are no red flags that come up, my debt to income ratio is low, credit is solid, more than enough funds to cover the costs to move in, etc., its just this tax transcript bullshit that is holding everything up and now I find out that they will only count what I made from August to Dec of last year as my "income" even though I am a full time employee.

I'm going with an FHA loan since I am buying it myself and dont have 10% to put down. Plus conventional requires a much smaller DTI ratio and any 1099 income is a huge pain in the ass to deal with, so if I keep it just W2 the FHA will be fine.

Honestly this is crap! They've had my info now for well over a month and there is no reason they can't just tell me yes or no. Its not like having the tax documents is going to change their mind

You don't have 10% to put down??? Why are you buying again???? Are you paying PMI too ?

Originally Posted by bossku69

the broker (and i heard this from others too) is that FHA loans are processed faster than conventional because the loan is backed by the govt not a investor/investment bank.

im just sick of the BS and what i hear from the broker. things change almost daily and its to the point where it might be better to even walk away because Ill be paying rent for an apt and leasing this house from the buyer... not worth that much money.

the whole system is retarded. a "preapproval" means almost nothing now other than "even if we approve you, this is the maximum amount we will consider." it would make more sense to get the loan FIRST then go find a house, then do all the details like inspections, etc. rather than this way of finding a home, putting down a contract, breaking a lease... then possibly having to reverse all that. complete nonsense

This is the way it works. You want to buy a house and you need a mortgage. You go to the bank and give them ALL of the documents they need. Not some, not the ones they need that you don't have and wont get back till 2 weeks from now, but everything they need. They sit down with you and they pull your credit report. They go over your expenses and look at your income and do a debt to income ratio. They then look at your credit score. From all of that they can give you a ball park of how much you can spend on buying a house.

Then you start looking for a house in that price range, or less. You make an offer. Once it is accepted you go back to said bank and give them a copy of the purchase agreement. The bank will order an appraisal . You will order a survey and home inspection. If everything checks out you move forward with the sale. The bank works with the title company and gets all the shit worked out. You show up with your deposit (20% recommended) check, you sign a million papers and then the house is yours. You THEN box up your shit and move into.

If you do it "right' you are much less likely to have problems.

[will76]

Originally Posted by Atticus

That's horrible advice. With historically low interest rates you would be insane to purchase a home entirely in cash.

We wont even get into the tax deductions on mortgage interest....

I agree, nothing wrong with using the banks money when you put your cash to work making more than you would be saving from the interest rate the bank is charging.

I just locked up a new house at 4.875% for 30 years. With interest rates that cheap I will borrow ALL DAY long. Instead of using up all of my cash on that i use the bank's money. I then go invest my cash and make a 12% return on it. Why do i want to use my cash to save less than 5% (not counting tax deductions) when i can use the banks money and then go make 12% with my cash. I net over 7% to the good.

[AlphaSky]

You mentioned you are leasing the house from the owner, as well as renting your own apartment at the same time?

I have a feeling your agent/broker is representing you and the owner, is this correct?

The owner had to move and doesn't want to "wait" for your loan to close, so they threatened you with "lease the house until the close of escrow" or you will lose the house.

That's a scare tactic created by the Realtor or Broker that is repping the owner.

The owner moved out too soon and is losing money also, and now is trying to recoup it from you.

You are the buyer and have the power. (unless your agent is taking the power away from you, because he is repping the seller also.. or he/she is a really bad agent.)

A simple escrow extention should've been created. When in escrow, Owners never threaten to pull the plug on a deal if the loan is within weeks of closing, simply because they'll have to put the house back on the market and lose another 30 to 60 days getting a buyer and doing another escrow. I don't think the house had multiple offers, because he could've bumped your offer out when it didn't close the first time and bring in the back up buyer. Which should tell you, you have more power than you know.

Your current escrow is closing at the end of June now... but, you are leasing the new house and your apartment. Did you sign a lease? If not, don't pay a penny to the owner for leasing the unit. If you have a valid escrow, and it has been extended to the end of June (I think I read that in your prior post) then let the owner scream all he wants. IF in the escrow extension they wrote in "buyer to lease unit at $XXX amount of dollars, have that money come out out of the closing fees to so you are not out of pocket.

About your current landlord situation, most landlords lose money when a tenant moves out and are very reasonable about having you extend your stay. Tell him the situation and prorate your rent due. Unless he has a tenant all ready to move in...which I doubt..check your building vacancy... then just call him up and say, my escrow has been extended, can I pay for another 10 days (or more).... of course he'll take your money.

Get that done first, so you can relax, then read your escrow extension and see if you wrote in the lease back. If you did, pay up at the close of escrow....

Stay on top of your lender. Sounds like there is bug in your loan and they are not telling you the truth. What they are doing is "panic shopping" your loan around to get it funded..... OR they are jerking your chain, and at the last minute will present you with an outrageous loan w/high points due to the "difficulty" in getting it funded. This is another shitty tactic lenders due to buyers to fuck them at the end and rob them blind. Buyers like you are so stressed out from all the delays will sign anything to end the ordeal. Be carefull and smart.

You have the power at the close of escrow, like you don't even know. When the lender gives you some shitty papers at 3 points higher than you were quoted, simply tell them "NO" and threaten to walk. Yes, have the balls.... and they will piss in their pants right in front of you and knock off points and fees to get you to sign.

I'm dead serious. Buyers just don't know how much power they have. If they try to fuck you at the close, just threaten to walk. Just the threat alone will "bring in the manager" and they will "see what we can do to lower some of these fees." I hate lenders, they are crooks with pens. FHA loans are so easy to manipulate and lenders do their best to do that because they working with buyers that don't have the skills nor the knowledge to compete.

Good luck with your escrow. Don't take any shit. And get your Realtor/Broker on the phone and bitch him out for putting you in this situation. He's making a commission on this deal, so you should've been taken care of.

[raven1083]

surely it sucks!!!

[96ukssob]

Originally Posted by will76

The moral of the story isn't buy with cash, but.... don't move into a house that you are buying until AFTER you bought it, signed the papers and went to closing.


You seem to get yourself into a lot of bad situation. Do me a favor bro, next time you go to make a big decission like buying a house, giving a friend of a friend 25K on some guaranteed 12% ROI investment etc. Contact me and run by me what you plan on doing. I can save you a lot of grief.

Yeah, I've made some pretty bad decisions, I appreciate the help

With this house, I am only leasing it, have not moved in. The reason being is that if I didn't I would be out of contract with the sellers and loose the $8k tax credit, as well they would be able to renegotiate the deal. Since they now know the appraised price, I feared they would raise the asking price.

It was a gamble, but after speaking with my attorney this was the best solution to keep them from renegotiating or starting a new contract.

Originally Posted by AlphaSky

You mentioned you are leasing the house from the owner, as well as renting your own apartment at the same time?

I have a feeling your agent/broker is representing you and the owner, is this correct?

The owner had to move and doesn't want to "wait" for your loan to close, so they threatened you with "lease the house until the close of escrow" or you will lose the house.

That's a scare tactic created by the Realtor or Broker that is repping the owner.

The owner moved out too soon and is losing money also, and now is trying to recoup it from you.

You are the buyer and have the power. (unless your agent is taking the power away from you, because he is repping the seller also.. or he/she is a really bad agent.)

A simple escrow extention should've been created. When in escrow, Owners never threaten to pull the plug on a deal if the loan is within weeks of closing, simply because they'll have to put the house back on the market and lose another 30 to 60 days getting a buyer and doing another escrow. I don't think the house had multiple offers, because he could've bumped your offer out when it didn't close the first time and bring in the back up buyer. Which should tell you, you have more power than you know.

Your current escrow is closing at the end of June now... but, you are leasing the new house and your apartment. Did you sign a lease? If not, don't pay a penny to the owner for leasing the unit. If you have a valid escrow, and it has been extended to the end of June (I think I read that in your prior post) then let the owner scream all he wants. IF in the escrow extension they wrote in "buyer to lease unit at $XXX amount of dollars, have that money come out out of the closing fees to so you are not out of pocket.

About your current landlord situation, most landlords lose money when a tenant moves out and are very reasonable about having you extend your stay. Tell him the situation and prorate your rent due. Unless he has a tenant all ready to move in...which I doubt..check your building vacancy... then just call him up and say, my escrow has been extended, can I pay for another 10 days (or more).... of course he'll take your money.

Get that done first, so you can relax, then read your escrow extension and see if you wrote in the lease back. If you did, pay up at the close of escrow....

Stay on top of your lender. Sounds like there is bug in your loan and they are not telling you the truth. What they are doing is "panic shopping" your loan around to get it funded..... OR they are jerking your chain, and at the last minute will present you with an outrageous loan w/high points due to the "difficulty" in getting it funded. This is another shitty tactic lenders due to buyers to fuck them at the end and rob them blind. Buyers like you are so stressed out from all the delays will sign anything to end the ordeal. Be carefull and smart.

You have the power at the close of escrow, like you don't even know. When the lender gives you some shitty papers at 3 points higher than you were quoted, simply tell them "NO" and threaten to walk. Yes, have the balls.... and they will piss in their pants right in front of you and knock off points and fees to get you to sign.

I'm dead serious. Buyers just don't know how much power they have. If they try to fuck you at the close, just threaten to walk. Just the threat alone will "bring in the manager" and they will "see what we can do to lower some of these fees." I hate lenders, they are crooks with pens. FHA loans are so easy to manipulate and lenders do their best to do that because they working with buyers that don't have the skills nor the knowledge to compete.

Good luck with your escrow. Don't take any shit. And get your Realtor/Broker on the phone and bitch him out for putting you in this situation. He's making a commission on this deal, so you should've been taken care of.

Thanks for the input, greatly appreciated.

I am only leasing their home based on their current mortgage which I get back any principle back at closing, so I only loose interest payments between now and closing.

The lease deal is set per diem based on first available closing date. We've moved the closing date now 3 times and just recently per the brokers request until the end of June. Our agent is only representing us and I hired a real estate attorney; mainly so he would be doing the title search and not someone from the bank.

The major concern was being out of contract with the buyer. If that was the case then I would loose the $8k tax credit. And in that event, then I would have told them either to sit and wait until I can close or you can walk away.

Spending a few hundred now to get back the $8k is worth the gamble from my end, otherwise I agree, it would have been a stupid decision but its based on risk vs reward.

[will76]

Originally Posted by bossku69

Yeah, I've made some pretty bad decisions, I appreciate the help

With this house, I am only leasing it, have not moved in. The reason being is that if I didn't I would be out of contract with the sellers and loose the $8k tax credit, as well they would be able to renegotiate the deal. Since they now know the appraised price, I feared they would raise the asking price.

It was a gamble, but after speaking with my attorney this was the best solution to keep them from renegotiating or starting a new contract.



Thanks for the input, greatly appreciated.

I am only leasing their home based on their current mortgage which I get back any principle back at closing, so I only loose interest payments between now and closing.

The lease deal is set per diem based on first available closing date. We've moved the closing date now 3 times and just recently per the brokers request until the end of June. Our agent is only representing us and I hired a real estate attorney; mainly so he would be doing the title search and not someone from the bank.

The major concern was being out of contract with the buyer. If that was the case then I would loose the $8k tax credit. And in that event, then I would have told them either to sit and wait until I can close or you can walk away.

Spending a few hundred now to get back the $8k is worth the gamble from my end, otherwise I agree, it would have been a stupid decision but its based on risk vs reward.

More information is always helpful, which is what you provided here.

So you didn't move out of your current apartment, thats good.
You can't be upset with the delays, it happens. Which is why it is important to get it all worked out before hand. In your case now it is too late because of the tax credit, so you have no choice but deal with it. How long do you have left on your contract before it expires? How much are you buying it for, how much was it appraised for. How long was it on the market? Would be helpful to know if you have leverage or not. If the sellers have had other interest they could let your contract expire and sell it to someone else. On the flip side if it has been on the market a long time, you paying a fair price, they haven't had much interest, and they can't afford to pay two mortgages if you back out, then you have a lot of leverage. In that case I would ask for an extention in writing for another 60 days to give the bank time to work it out.

You "leasing" is basically just paying them more for a purchase price. Depending on their situation you could have probably negotiated that part out and just got them to accept giving you more time for free. Getting the tax credit would be nice, but you need to be 100% sure you got a deal in the first place with the bank or your get no house, no tax credit and you are out more than a couple hundred bucks.

[will76]

After re-reading you first post. Damn man, don't do this again lol. The bank can say "you are good" but without all of the paperwork from you they are basing that on what you are telling them and not what they are seeing. Then you give them the paper work and they are like " oh, we can't count this this and this" and now you have problems but you already 6 weeks into this and a lot costs. The bank really doesn't have much to lose if you can't get financed but you do. You can't jump into stuff like this half cocked with your eyes closed. You have to think this through.