My mortgage was shot down near closing due to old tax returns. Help!

[Anonymous]

Hey everyone this is my first post on my fico.  In short my mortgage was near closing at the appraisal stage when the underwriters saw where I had written off business expenses on my old job that I no longer work for from 2012 and 2013.

First,  is there anything I can do to rectify this?  I've already lost my earnest money. 

I've spoken to another broker and was told it's possible I could do my taxes right away in January and get a clear  and clean 2014 return and a letter saying I'm not going to be writing anything off in the future?  

I'm frustrated!  Everything else was in line,  and I don't work at the same place and don't have to write or spend anything on expenses this year or from here out. 

Any tips? 

[StartingOver10]

Tip 1:  Don't go to a broker only.

Tip 2:  Go to a mortgage banker - where they underwrite and fund their own loans. Many mortgage bankers are also brokers but not all brokers are mortgage bankers. You want someone that does their own underwriting that way you don't put yourself in the position you just came out of with the last deal.

There are programs where only one years tax return is needed so doing your taxes in Jan 2014 would solve your problem. Go with one of those programs. Don't sign anything that you will never deduct business expenses in the future, what if you have a reason to deduct a business expense in a few years? There is no reason to sign a document like that if your 2014 tax returns show you are a W-2 employee and not self employed.

[Anonymous]

Good tips I appreciate them.  One Question 

My mortgage people were direct lenders that did underwriting in house.  I had a financing contingency and he had my taxes for over a month before they caught them..  I lost my earnest due to it was so late in the deal. 

What are these programs you speak of? 

[StartingOver10]

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@Anonymous wrote:

Good tips I appreciate them.  One Question 

My mortgage people were direct lenders that did underwriting in house.  I had a financing contingency and he had my taxes for over a month before they caught them..  I lost my earnest due to it was so late in the deal. 

What are these programs you speak of? 

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Your LO apparently didn't look at the return - otherwise he would have seen the tax deduction early in the process.

Having a knowledgeable LO is critical.

I don't understand how your earnest money was at risk if your contract was contingent on financing. That is the entire point of the contingency, to not lose the EMD if you can't meet the financing contingency.

Did you sign something else giving up the EMD?

As to the program, ask your next LO (don't go back to the other one that never looked at your tax return until it was too late) if they require one or two years. I have a LO that only needs one year. You can pm me if you want his info.

[Anonymous]

The contingency had a time allowance and this went past the elapsed time.. Is there anyone that can keep me from loosing my money? They are trying to get me to sign a contract end. I'm about to pm you for contact information.

Any other loan people here please continue chiming in all help and contacts are welcome.

[StartingOver10]

If you had a FHA loan contingency then the seller can NOT keep any part of your deposit. Fight this. Your agent should be fighting for you too.

[Anonymous]

Even if the time has elapsed in the contingency? I pmed you btw

[ezdriver]

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@Anonymous wrote:
The contingency had a time allowance and this went past the elapsed time.. Is there anyone that can keep me from loosing my money? They are trying to get me to sign a contract end. I'm about to pm you for contact information.

Any other loan people here please continue chiming in all help and contacts are welcome.

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Where is your Realtor? Your Realtor should have have contacted you the day before your mortgage contingency date and inform you that your contract will be null and void if you fail to perform [deliver a mortgage commitment to seller] by the contingency date. I don't see how you could lose your EMD unless there was something else that changed the mortgage contingency condition. This is very basic stuff in every residential purchase agreement done thorugh an MLS Realtor.

[StartingOver10]

pm'ed you two excellent LOs

[StartingOver10]

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@Anonymous wrote:
Even if the time has elapsed in the contingency? I pmed you btw

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Read the FHA addendum. It is very specific about not retaining deposits. Do you have an to represent you or did you use the seller's agent?