Posted by GLRMbile on 7/19/07 9:57am
Msg #200752

First Time Borrower

Know a couple that just bought their first home.On the loan application husband is the only borrower, his wife did not qualify to be added as a borrower as she had not been employed for the lenghth of time required.Monthly income was listed at 3800,when in fact he doesn't "clear" more than 1300. Both husband and wife are on the Deed yet only his signature was required on the acknowledgement.My question is is this "normal" procedure and why wasn't she listed as a non-borrower?Is she not required to sign the acknowledgement for the Deed? This loan is a first and second (house was appraised LOW they got the second to cover additional money to meet buyers price) Interest only.

Reply by LisaWI on 7/19/07 10:05am
Msg #200754

Re:Overstated Income?

Things that make you go hmmmmmmm.

Reply by John_NorCal on 7/19/07 10:11am
Msg #200755

Why do you worry about this?

Unless you are the loan officer or lender, what is on the application is none of your business. You are only there to witness the signing and notarize documents. Anything else is between the borrowers and the lender.

Reply by LisaWI on 7/19/07 10:16am
Msg #200758

Re: Did I misunderstand posting.......

I read it as they were referring to a friend, not a signing.

Reply by John_NorCal on 7/19/07 10:21am
Msg #200762

Re: Did I misunderstand posting.......

OK, I guess I did misunderstand. I took it that it was one of his/her signings. It just seems that so many people make more out of this business than they should and so I assumed. And you know what they say when you assume, you make an ................never mind.

Reply by LisaWI on 7/19/07 10:22am
Msg #200763

Re: Its Ok John

we still love ya anyway!!

Reply by John_NorCal on 7/19/07 10:24am
Msg #200764

Re: Its Ok John

sniff - sniff - sniff - thank you........

Reply by GLRMbile on 7/19/07 10:18am
Msg #200759

Re: Why do you worry about this?

I suppose I "worry" because the Borrower is my 21 year old son with a mortgage he really never should have been "approved" for.

Reply by Philip Johnson on 7/19/07 10:19am
Msg #200760

Now that's a reason. :) n/m

Reply by LisaWI on 7/19/07 10:20am
Msg #200761

Re: And if you read further down.......

there is a post on this very subject. Not sure what the post number is, but it might shed some light for you. I would be very concerned if I was in your shoes also.

Reply by Rhonda Skansi on 7/19/07 10:28am
Msg #200765

I wonder if the stated income of $3800 includes his income..

and her income combined?

Reply by dickb/wi on 7/20/07 3:50pm
Msg #201051

Income on the 1003 is GROSS income.........when you apply...

for a loan they don't worry about net income at the onset....they work with gross........in this case it looks as tho they used only the wifes gross income.....my .02....................

Reply by GLRMbile on 7/19/07 10:28am
Msg #200766

Re: And if you read further down.......

That would be the post on sub-prime loans? I never question the terms of a loan I am signing,this one just hit a little close to homeA few details just don't seem quite up to par.

Reply by LisaWI on 7/19/07 10:33am
Msg #200768

Re: I know exactly where you are coming from

My mom just bought a new home, and I have been there for her from the beginning to the end. It has been so long since she did any kind of financing(she owned her home free and clear), that she was real fuzzy on how things worked. And I wasnt about to sit and watch her get swindled. I saved her $275 on her closing costs because they were double charging her for her appraisal.

Reply by Philip Johnson on 7/19/07 10:33am
Msg #200769

I believe if you look at the bottom of the 1003...

you'll see that dreaded statement that says I confirm under penalty of law that all of the above information is correct. Your son maybe caught up in the adventure of having a new home that he and the LO are stretching the facts a bit.

Reply by GLRMbile on 7/19/07 10:48am
Msg #200774

Re: I believe if you look at the bottom of the 1003...

Stretching is putting it mildly.Cash listed is 15,000.00(actual is maybe 200)Vehicle worth is 20,000 (actual 1500.00) Personal Property listed as 30,000.00 (actual maybe 1000.00)
We attempted to advise him against this purchase but our advice wasn't taken to heart

But hey thanks for the responses

Reply by LisaWI on 7/19/07 11:03am
Msg #200778

Re:Shame on the LO for this

you know he/she was an inspiration for their decision. I feel for you. Good luck.

Reply by Philip Johnson on 7/19/07 11:03am
Msg #200779

The school of hard knocks, has high tution.

Hopefully he will see his way through this, but sometimes crap happens and lif goes on. Good luck.

Reply by Becca_FL on 7/19/07 1:47pm
Msg #200809

Re: Why do you worry about this?

I would be worried too. You can always report the information here. Your 21 yo son does not need a foreclosure on his credit. Does he think he can afford the payments?

http://www.mortgagefraudwatchlist.org/

http://www.mortgagefraudwatchlist.org/a/recordsadd.php

Reply by Becca_FL on 7/19/07 2:05pm
Msg #200810

Re: Why do you worry about this?

I would be worried too. Can he afford the loan? The last thing he needs is a foreclosure on his credit history. You can report suspicious activity to the website below.

http://www.mortgagefraudwatchlist.org/

http://www.mortgagefraudwatchlist.org/a/recordsadd.php

Reply by sue_pa on 7/19/07 10:42am
Msg #200773

I too would be VERY concerned if this were my son. Why is he agreeing to this loan? We certainly know if he nets $1300 his gross isn't $3800. Technically he is committing loan fraud if he doesn't gross $3800. Who says the house was appraised low? If I were paying for an appraisal and it came in significantly lower than what I absolutely knew to be the going price in a neighborhood I'd be throwing a royal fit w/my lender about their incompetent appraiser and insisting they redo it with correct comps or whatever the problem is.

This is the kind of thing we read about where the 'poor' buyers have been hoodwinked - they know what they're doing and if they don't qualify why are they getting this house? Interest only on a purchase? Not a very good idea unless they are waiting for another house to sell and apply the proceeds to this one. Sure sounds to me like they are buying a house they can't afford. Personal responsibility ...

I pull my hair out EVERY day with my grown kids - they still are gullible and naive and would believe anything a broker or realtor told them - even if they really knew inside it wasn't right.

As for the wife being a nonborrower or not, what does it matter? That's the lender's call.

Reply by Gina Russell on 7/19/07 11:02am
Msg #200775

Personal responsibility didn't EVEN occur to them.They now have a commitment to a property they will probably never "own"
I did point out the fraud issue,I don't think he undersood half of the documents he signed,just signed and didn't question any of the information.
Naive and Gullible and up to his butt in debt for 30 years!!


Whats a mother to do

Reply by DEvans/CA on 7/19/07 11:17am
Msg #200780

If there is a PMI on the loan and he defaults, the adjuster for that PMI will SOMETIMES follow up and investigate the loan to see if it was attained with fraudulent information.

Reply by sue_pa on 7/19/07 11:54am
Msg #200784

I feel for you and know exactly how you must feel. Unfortunately, sometimes it takes the school of hard knocks for them to understand that everyone in the world isn't looking out for their best interests and sad to say this appears will be a VERY expensive lesson for them. My kids ask for advice ALL the time - and then turn around and do what they want - naturally my advice is always better (need that smiley here)