Still waiting on clear to close. REALLY STRESSING

[tooleman694]

OilFieldEngineer sent you a pm.

[Anonymous]

Good lord.  Sorry to hear about all the trouble.  Still holding out hope you can get around it.  Sounds like youR LO is fighting for it at least, and that might be all it takes. 

Please do keep us updated.

[JM-AM]

Just a little information...

There are many and I do mean many UW's that are independent and remote UW's for different lenders. They get paid a commission and or a bonus per file. They are not all W2 salaried employees.

So while you feel they dont understand, you can bet that majority actually do. The problem isnt with the UW, the problem usually arrises from the Processor or LO or Broker. It can be any one that is in the process of your loan including the UW, but the issues and mistakes usually come from the processor and they like to blame the UW.

As far as your write offs and being in the negative, many of us have been there, especially in the first few years starting up. No matter how you twist and turn why you took advantage of the tax benefits and ended up being in the negative, the reality of that statement is while you may have hundreds of thousands of dollars, you actually show a complete loss and no income.

Even the IRS will scrutinize your business after so many years of being in the negative.

Back to the point of the post...

Just like a W2 employee has to show a positive income, a self employed business owner has to also show a positive income. While there may be work arounds for some instances, without actually seeing your situation in front of me I can not add anything positive.

I wish I had better news and something more positive to tell you.

[OilFieldEngineer]

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@JM-AM wrote:

Just a little information...

There are many and I do mean many UW's that are independent and remote UW's for different lenders. They get paid a commission and or a bonus per file. They are not all W2 salaried employees.

So while you feel they dont understand, you can bet that majority actually do. The problem isnt with the UW, the problem usually arrises from the Processor or LO or Broker. It can be any one that is in the process of your loan including the UW, but the issues and mistakes usually come from the processor and they like to blame the UW.

As far as your write offs and being in the negative, many of us have been there, especially in the first few years starting up. No matter how you twist and turn why you took advantage of the tax benefits and ended up being in the negative, the reality of that statement is while you may have hundreds of thousands of dollars, you actually show a complete loss and no income.

Even the IRS will scrutinize your business after so many years of being in the negative.

Back to the point of the post...

Just like a W2 employee has to show a positive income, a self employed business owner has to also show a positive income. While there may be work arounds for some instances, without actually seeing your situation in front of me I can not add anything positive.

I wish I had better news and something more positive to tell you.

---

Thanks for the response. I know you probably are probably one of the more knowledgable sources of information on this forum since you are in the business. I can understand completely their situation if I still had the business and had not sold out when it started loosing money in the last two years of owning it. But it was sold in 2008. After that I became a w2 employee with an actual company, the losses that are being taken on taxes are being carried forward for up to 10 years as there was almost 2 million dollars in losses for the company. I was actually audited by the IRS in 2009 since they saw this huge loss being taken after a pretty large loss in 2008 and everything held up all legal. Thats how the tax attorney comes into play, both parties have given letters explanations, even done phone conferences with the underwriters at the lender to help give clarity. 

The issue is what the underwriter that has given all the problems keeps stating if he doesn't show income on the tax filing he doesn't have income which is the complete opossite. I lost a great deal of money with that company which I am legally entitled to depreciate the loss against future tax liability which is what I am doing. This does not and will never effect my actual income which as stated before is more than sufficient to meet my obligations. My gross income is in the positive however my adjusted gross is negative or zero and has been since 2008 taxes and will be probably till at least 2017 taxes. 

I try to look at this situation from the outside in as every business has their own procedures and way of doing things but what troubles me is that the previous underwriter and now the head underwriter for their whole company have eaten up in total as of this evenings email exchange with the tax attorney and cpa 6 hours between the two of them and still either don't understand or see the big picture. I take that back everything is in the head underwriter's hands now on the loan which according to the email trail he has a better understanding after the recent conference call and is going to review everything done by the previous underwriter and try to render a decision monday. I realize that this is probably a different scenario but I think the previous underwriter just made up there mind they didn't want to understand. Talking to the loan officer and the VP of lending they don't feel it is all that complex and boast about getting more convoluted cases than mine done. 

All I can do now is just keep my fingers crossed till monday afternoon. Hell I will be traveling when they even open for the day so even if they email me or call with good or bad news I won't know till at least 2pm monday when my flight lands and I pop in my US sim card. 

[JM-AM]

You still have a fair chance...

Give them the time and see what they come back with, I do feel for you, as the process as it seems simple there is so much red tape.

Just curious as I do become forgetful reading through all the post and I am old!

How much are you putting down? How much is the purchase price?

[OilFieldEngineer]

5% down with all prepays and closing costs less the 6k lender credit

Purchase price is 285k  - Appraisal hit 365k

[JM-AM]

Can you put a little more down if needed to?

Not saying you have to, but it is possible they may counter with some type of condition, with that possibly being one of them.

In my opinion, I feel you are getting a hard case of by the book, and hopefully the Senior UW, will find a way to rectify the issue with great news for you. It has been done before, so dont be so down on it as of yet. I have seen worse scenarios get pushed through...

[OilFieldEngineer]

I told them if I was going to have to go up I would but I didn't nescessarily want to. I have a quote from a company doing an outdoor kitchen and pool to the tune of 42k that I was paying out of pocket. I did pose the scenario of them rolling the 42k into my loan and I just put 21% down on the total loan value. That way there is no PMI and I don't nescessarily have to escrow my tax and insurance. 

The LO knows the reasoning why I only wanted to put the 20k down and that was since I had plans of doing the pool and outdoor kitchen. So I think that may be a reality who knows what they are coming up with. I do agree with you when you say you think its a case of straight by the book. 

[Uppingmyscore]

Any updates? 

[OilFieldEngineer]

Well there is an update so to speak just not any progress. I made it back yesterday and followed up with the loan officer today who stated that she totally forgot that monday was a holiday for banks so the underwriters were not working. So today as of 5pm the underwriter (new one) sent an email that he was about 75% complete looking at all my records (I provided a ton) and anticipated finishing up in the morning he stated that he believed from skimming through that he had everything and should not need anything else. The loan officer did say he seemed pretty positive and did indicate he would try to issue a clear to close as early as possible so she could work on maybe getting the closing for tomorrow afternoon or the following morning at the latest. 

Fingers are crossed. Staying a second night in a hotel really hoping they can pull out the closing for tomorrow I have a moving company on standby (not having to pay since I have used them 4 other times between moving apartments and moving the ex wife out and the fiance in then everything that didnt get ruined to storage). Ready to get all my stuff out of storage and moved into the new house and start buying some new furniture. 

One positive thing was that at 10am my LO did email me and said she ran the situation with the insurance company paying out a large sum for the ruined belongings from my condo and he said go ahead and deposit the check no issues. The previous underwriter said she wouldnt allow the funds deposited till after closing. This is good because my bank is holding it for 48 hours since it was almost 100k. Really ready to start buying new stuff and be able to give them a delivery address.

Hopefully I will be able to post some outstanding news by this time tomorrow. Thanks everyone for your concern and support its been a tough road but it finally looks like the dice are falling where I need them to.