Upside down asset and a mortgage?

[cartwrna]

How are upside down assets looked at when it comes to a mortgage? I have 2 vehicles and a motorcycle all financed. When getting values I come out around 5k upside down total. Any insight on if this effects the process?

[StartingOver10]

That's a good question.  Don't you have offsetting assets?  From the 1003 form the assets are viewed as a total and the liabilities are viewed as a total. Hopefully one of the LO's can answer your question.

[ezdriver]

The 1003 needs a value for each asset and that value can be a positive or a negative number. Enter factual data on the 1003 and the underwriter will process it accordingly. Also, the underwriter cares more are positive and readily-convertable assets [eg: stocks, bonds, 401K, savings, etc.].

[cartwrna]

Offsetting assets? I have the upside down vehicles, and around 12k in savings. Most of the savings will be used for DP though.

[StartingOver10]

Assets also include things like (if applicable):

• Stock accounts
• 401k's or 403b or thrift savings types accounts (retirement accounts)
• furniture
• jewelry
• other real estate, etc

Naturally as pointed out earlier, liquid or near liquid assets are preferred by lenders. 

Here is a 1003 form so you can familiarize yourself. https://www.fanniemae.com/content/guide_form/1003rev.pdf  This is the form that all lenders use for mortgage applications. 

[DallasLoanGuy]

last i heard. automated doesnt even read the assets for autos and jewelry, ect.

i leave them off

[StartingOver10]

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@DallasLoanGuy wrote:

last i heard. automated doesnt even read the assets for autos and jewelry, ect.

i leave them off

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Wow...that's good to know. Doesn't it create sort of a lopsided app though if you have an auto loan and no corresponding auto asset? Just curious here...

[DallasLoanGuy]

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@StartingOver10 wrote:

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@DallasLoanGuy wrote:

last i heard. automated doesnt even read the assets for autos and jewelry, ect.

i leave them off

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Wow...that's good to know. Doesn't it create sort of a lopsided app though if you have an auto loan and no corresponding auto asset? Just curious here...

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i had one company want them listed.

their policy was so the underwriter could compare autos and car notes.  so if you list a 2012 bmw but dont see a note? that raises questions.

anyway. i could be wrong. and people can put down what they want.  but i have been told by several different bossed that du doesnt consider them since they arent liquid

maybe they help with a manual underwrite?

[cartwrna]

My thing is that they are upside down, that may actually look worse. Can't make anything off of a vehicle that more is owed then it's worth :-P then again I look at it as they see 3 auto loans amounting around $70,000 but I don't list any asset corresponding to that debt it sort of looks unsecured. If that makes sense at all?

[DallasLoanGuy]

i dont think it hurts you either way