topic Re: Balance due showing on Tax return transcript. Will this be a problem in Mortgage Loans

Balance due showing on Tax return transcript. Will this be a problem

Anonymous — Tue, 26 Jun 2012 19:09:40 GMT

Hello, I was wondering if anyone with experience in this area can help me with this. when I filed my taxes this year I still owed $20,511. I paid the full amount the next day by writing a check, however it was from one of our accounts(with Chase) that was not disclosed to the lender because there are deposits as well as payments in that account from and to my parents that I did not want them to scrutinize, plus there was more than enough money for all the down payment and closing in our main account (with Wells Fargo) which we told them was our only account. I know when the lender request my tax return transcript, it will show the $20k due, so my first question is would they even look at that section or will they just look at the income to see if it matches with the tax return I gave them. And if they do ask about it the balance due showing, can I just show them a tax account transcript showing all taxes were paid or will the underwriter get into how and from what account the taxes were paid from? If the lenders found out about the undisclosed account, it will turn into a real headache. Thanks

Re: Balance due showing on Tax return transcript. Will this be a problem

Booner72 — Wed, 27 Jun 2012 00:31:55 GMT

You already committed fraud by not disclosing that account and it is not going to be pretty when they find out. Sorry to be so blunt. Of course they are going to notice this. I don't think they are going to want to move forward when they know you hid something.

Maybe you should find another lender, but this time, don't hide things.

It will be interesting to see what other posters will say on this. I've read replies from the mortgage brokers that post here, and they have made it very clear that hiding and forging on your mortgage app is a pretty big No No.

Re: Balance due showing on Tax return transcript. Will this be a problem

Anonymous — Wed, 27 Jun 2012 02:08:00 GMT

Fraud? Then why is it that on my mortgage app. It states I only need to document assets that will be used for downpayment and closing, which is all on the WF accout. In fact I have twice as much in the WF acount then needed to close. No money from the chase acct will be used towards the house at all.

Re: Balance due showing on Tax return transcript. Will this be a problem

webhopper — Wed, 27 Jun 2012 03:29:50 GMT

You can get a verification of deposit letter from chase if you must. My broker didn't want to share my chase statement because of some deposits from selling my business as well as some overdrafts. I didn't use that account to fund my closing, so the verification of deposit was fine for that particular account.

Re: Balance due showing on Tax return transcript. Will this be a problem

Anonymous — Wed, 27 Jun 2012 04:05:25 GMT

Hold on, im confused, you just stated your mortgage broker did not want to reveal your chase account to the underwriter. but by getting a verification of deposit, didnt you just reveal it all. was the chase account the account you were using for your downpayment and closing fees? Anyways majority of the money in my chase account is technically belongs to my dad's, its just that the account is in my name. The Wells Fargo account I supplied when I applied is the account I will use for everything, there are already enough funds in there that are seasoned (and there are no skeletons with that account). So I do not see why I need to disclose the chase account as it will only bring me headaches. Now my worry is that since I paid my taxes due for 2011 with the Chase account (technically my dad's money, but with his ok). Will the lender catch this and scrutinize it? Will they even notice it? I cannot even get a gift letter from my dad as he's out of the country and I wont be able to even reach him for the next 3 months. My mortgage broker did mention to me that the underwriters do not care who pays what prior to you applying for the mortgage as long as it shows all your debts are paid down and your dti is good. But who knows if hes telling the truth.

Re: Balance due showing on Tax return transcript. Will this be a problem

DallasLoanGuy — Wed, 27 Jun 2012 04:53:54 GMT

@Booner72 wrote:
You already committed fraud by not disclosing that account and it is not going to be pretty when they find out. Sorry to be so blunt. Of course they are going to notice this. I don't think they are going to want to move forward when they know you hid something.

Maybe you should find another lender, but this time, don't hide things.

It will be interesting to see what other posters will say on this. I've read replies from the mortgage brokers that post here, and they have made it very clear that hiding and forging on your mortgage app is a pretty big No No.

we do NOT require you to disclose all asset accounts.

only enough accounts to satisfy the liquid cash requirements.

i leave accounts off the application all of the time.

this is NOT FRAUD.

as for the original question.... you will likely have to prove the amount owed is paid.... otherwise it is a liability.

talk to your loan officer... they can explain the situation to the underwriter and come to some type of arrangement about how to document the paid taxes without opening a can of worms on the other account.

Re: Balance due showing on Tax return transcript. Will this be a problem

Anonymous — Wed, 27 Jun 2012 05:32:53 GMT

Couldnt I just provide the tax account transcript? Thats the transcript showing if there are any more money still owed to the IRS or if its all paid off. I have my 2010 one and it states clearly on page 1 that balance is 0. Also to the original responder who said I committed fraud, why would you try to scare someone when this board is all about helping people.

Re: Balance due showing on Tax return transcript. Will this be a problem

Booner72 — Wed, 27 Jun 2012 21:20:49 GMT

OH. I figured not disclosing something was lying by ommission. Thanks for the clarification.

Re: Balance due showing on Tax return transcript. Will this be a problem

Anonymous — Thu, 28 Jun 2012 23:13:19 GMT

I'm self employed and owe taxes every single yr when I file It's never too much 1k-5k. But I'm sure there is a very easy way to prove that it's been paid. I filed in March, had my payment there by April and it was cashed immediately by them. So surely they can get you proof of that for your lender in a timely manner.

Re: Balance due showing on Tax return transcript. Will this be a problem

Familywantsahouse — Fri, 29 Jun 2012 11:40:53 GMT

I'll keep you posted i'm in UW now with a similiar situation. My name is NOT on our loan. I currently operate a business that I'm selling since we're moving. I have made several transfers from my business account into our personal checking account in the past few months since I misplaced my business debit card and knew I was closing my business I just used our personal debit card and transferred the money to reimburse into our personal account.

They are asking for my business bank statements....since I'm wrapping up and transferring ownership I have regularly been using my overdraft line of credit until my sale goes through next week since I'm not marketing or taking on new clients. I'm hoping we can just provide a letter from the bank that the transfers came from my business account without providing the statements.

we'll see.