05-08-2013 09:05 PM
My story in long, but the slighly shorter version is this: I've been out of the country for 7 years. I'm current on my taxes and always reported all my income. Moved back to the US end of last year, in an apartment, started a new job, and now I'm ready to go buy a house. Live in the bay area.
Went to see a (recommneded by friend) mortgage broker last week, thinking the answer was going to be "looks OK, but you need 6 months on the job". I gave him all the docs I had, including my 2012 tax return WHICH HAD BEEN FILED ON APRIL 15TH OF THIS YEAR, ON-TIME, BUT ON PAPER. I also gave him copies of my transcripts from prior years just FYI, recent paycheck stubs, etc etc.
So here's the thing. He gets back to me in 2 days and says "good news, we don't need to wait, you're pre-approved, ready to make offers". Found a house over the weekend, made offer, in-contract on Tuesday of this week (5/7, yesterday).
NEVER THOUGHT TO TELL ME THAT TAX TRANSCRIPTS FROM THE IRS FOR THE 2012 RETURN WOULD BE REQUIRED. When I got the disclosures today, there was an IRS transcript request doc for me to sign. I thought to myself, gee, I should remind him that the 2012 transcripts probably won't be ready from the IRS, and thinking "I'M SURE THEY WOULD KNOW THAT AND HAVE A WORKAROUND FOR DEALING WITH THIS." Well, it turns out there isn't a workaround. I need the damn 2012 tax transcript.
My financing contingency goes through 5/24. My loan is set to close on 6/6. Now I'm at the mercy of the IRS doing a timely job of processing my return and giving us transcripts. I've never known the IRS to do anything in a timely way. My return has been with them for 3.5 weeks, and it took me basically 2 hours on the phone today just to get a "nothing in our system yet, check back in a couple of weeks".
Finally, my questions:
1. Anybody know a magic trick to get the IRS to process your paper return faster?
2. Anybody know a magic trick to get the UW to not ask for 2012 transcripts, and just accept 2010, 2011, + my 2012 return copy?
3. In the bay area now it's an intense sellers market. Anyone have advice about how to approach a seller and ask for an extension without killing the deal?
05-09-2013 12:15 PM
They're required to verify income. They had a rough time pulling mine as I filed a week before the tax deadline. I provided copies of my tax returns plus proof of payment of due taxes and that sufficed. I also got word they finally got my transcripts from the IRS as well.
05-09-2013 12:22 PM
Was that this year? Did you file paper or e-file? My problem is apparently that I filed paper right on the 15th, and I have LOTS of extra schedules (foreign earned income, etc etc). If you did paper, how long did it take from filing to transcripts?
I expect a small refund, so I don't really have a proof of payment. I only have a copy of the return, and a certified mail receipt from the 15th showing I mailed something to the IRS.
Thanks for the reply,
05-09-2013 02:39 PM
I went thru this EXACT situation about a month ago. My advice get with a tax advacate ASAP. He/She can expedite your transcript alot quicker. *I was scheduled to close on my loan March 20. The ONLY thing holding up the closing was my 2012 transcripts from the IRS (I filed electronicaly mid Feb.) I was told by the IRS that it would be after April 15 before I'd receive my transcripts-because they work the ones due a refund first and push all others to the back. So, a couple of days later, I contacted a tax advocate, told her my story, and was told to fax her a copy of my completed return to her and she would "manualy" get the IRS to "push it ahead in the system". Lo and behold , two weeks later I get a call from my advacate saying The IRS has my transcript completed and ready. I closed 5 days later. Long story short-Get a Tax Advacate....
05-10-2013 12:08 PM
I did an CPA prepared E-File. The transcripts lagged so I provided the documentation as proof. A week later I was told my transcript came through. If you didn't owe and were due a refund, I believe that your documentation should be sufficent.
05-11-2013 10:40 PM
Thanks for the replies and comments. I guess one of the key problems is that I'm a paper filer. I contacted the tax advocates but I'm waiting to hear back if they are going to be able to help. In the meantime I'm checking daily on the irs website to see if it will let me order transcripts. Navigating the mortgage process is stressful enough - never thought I'd have the added stress of waiting on the IRS.
05-12-2013 05:15 AM
Make sure when you contact the tax advocate that you tell them of your need and that will adversely affect you and and your family if those transcripts are not gotten on time. The Lender must have them, it is a requirement with the 4506-T form. May you be blessed in getting your home!
05-13-2013 09:03 PM
My wife and I filed separately in February via e-file. Her returns showed in the system and mine didn't. She received a refund and I mailed my payment on 4/15
I had to show copy of completed return along with 2010, I'm not sure if they checked again.
Good luck. One thing I've found helpful with processers and UW's is to offer solutions, but no more than 2.
"You can check again and pay for it, or I'm happy to show you my 2010 return if that will help speed the process along"
05-14-2013 09:38 AM
Thanks for the feedback. Turns out if you are owed a refund they process your return faster, and if you had to pay money they don't start processing the return until June. The logic is that if they owe you money, they must pay interest on your refund after 45 days or something like that. On the other hand if you paid money they just cash your check, they have the money already, and they do the math later to confirm the amount was correct.
Copyright ©2001-2013 Fair Isaac Corporation.
All rights reserved.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions based on Experian or Equifax data (additional FICO® Score versions based on TransUnion data are not currently available on myFICO.com). Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.