Underwriter has problem with last years taxes

[Anonymous]

I just got a call from the processor and she said the underwriter is having a problem with last years tax forms not adding up. We figured out she was missing a W2 so I sent it to her. I'm really worried now because last year my husband ventured out with his own truck and it was a big flop (-3000) after all the deductions and expenses. He did make $20,000 with W2's between 3 other companies all same line of work (1st went under  2nd not enough money 3rd he's still there and loves it) I made $7,000 with a little part time job last year and that's on this tax return, maybe she's seeing $27000 and thinking it was all his? Is his income for last year going to ruin this whole thing for us? He started with his current employer in Nov 07. in 2006 he made $55,000 and this year he's made right at $68,000.

Somebody please tell me last year won't kill the deal for us! I have no nails left to bite and I'm about to go insane with not knowing

[DallasLoanGuy]

Good question for your loan officer. If you can convince the underwriter that this is an anomoly and not likely to re-occur, then you have a chance.

[ShanetheMortgageMan]

Is your husband still self-employed with the truck and what not?  If not, shouldn't even be an issue since that is over with.  If he is, worst case is that they will factor the loss into the income calculation, but like Tom (DallasLoanGuy) says an underwriter might just throw it out.

[Anonymous]

Thanks for getting back to me Shane & Dallas

No he's not self employed anymore that venture didn't last long at all we couldn't even break even with fuel, ins and the pay he was making with the lousy company he leased on with.  He went back to a regular job with W2's after that. I'm sick to my stomach worrying over this now. I was so freaked when the processor called I totally forgot to ask about who the lender was they were sending through lol

[DallasLoanGuy]

I don't think you will have any problems..... A good letter of explanation is needed.

If the LO didn't ask for one, write one anyway!!!!
 

[Anonymous]

Hey GClark,

I agree with Shane and Tom. Most likely they will throw out 2007's

self-employed income and use the W2 income from 2006 & 2008.

Additionally, his income went up from 55k to 68k since switching to

W2 status, which means the average for those 2 years is about

61.5k. That's much better than the 50k you mentioned in one of your

previous posts. And even if they subtract the $3,000 loss, that still leaves

him over $58,000 on average. So I'd say your hubby is in great shape income-wise. 

So what appears to be a negative should turn out to be a plus for you guys.

I realize that you don't have any fingernails left, but you've now given the

people in a position to make a decision everything they need to do exactly

that. All you can do now is sit tight until they get back to you.

This next comment may fall on deaf ears, but I'm going to say it anyway:

If you keep looking for something to go wrong, eventually it will.

So stop looking.

Since you're on the computer all day anyway, why not send your processor

an email asking if there's anything else she can think of that might be needed?

If she needs something, she'll let you know. Beyond that, the best thing you

can do for yourself and your husband is remain positive.

You don't have to believe everything you think. And even though you can't

control your thoughts, you can choose which ones you buy into. So try

and stay upbeat cuz you're pretty close to getting this deal done.

We're still pulling for you, GClark!!!!

CanDo

"The right attitude is everything" 

[Anonymous]

Your right Cando!!! I think I'm going to gather the kids up, take a ride by the house, say a little prayer and head off to the park with them. I really need to get out of this house and relax! If it's meant to be it WILL happen! Thanks so much for your encouragement!

[ficoschmico]

If they have all the w2's, and they add up to what's on the 1040's you'll be fine in that regard.   You'll be hit for the small loss on the business in your dti, but it seems you'll be ok.

Good Luck.

[Anonymous]

I just found out that our broker is going through Suntrust in Houston and not Chase after all. I have no idea why we had a Chase paper in our file.  The processor called today and said that the underwriter is waiting on verifications from the IRS for last years taxes. She also said she's doing a VOD today. Oh and everything is fine with the appraisal too!

Is anyone familiar with Suntrust? How long does their process usually take to get to closing?

Thanks for any info!

[ShanetheMortgageMan]

It's pretty much the same with all lenders, SunTrust, Chase, BofA, it's all dependent on how much work they have/how busy they are, how many people are working, etc.  The loan officer might have wanted to go with Chase at first and then switched to SunTrust, as Chase doesn't always have the lowest rates.