Didn't disclose an installment agreement - is this a problem?

[Anonymous]

My loans aren't delenquent.  I just have a payment arrangement that can be paid off if brought up.

[webhopper]

I think you misunderstood my statement. All I'm saying is that your 100 per month payment should be counted as an obligation on your DTI and the fact that you owe this money may put you on a federal debtors list.

[StartingOver10]

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@Anonymous wrote:

My loans aren't delenquent.  I just have a payment arrangement that can be paid off if brought up.

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This is very serious. There is no exception for payments not on the credit report. If the LO told you payments don't have to be disclosed if they aren't listed on the credit report, than the LO is misinformed.

Take a look at the loan application and read what it says. You can find one by searching for "mortgage loan application form 1003" (that is the standard form used by Wells Fargo and nearly every institutional lender).

The fact is, the payments are part of your back end ratios and if you fail to include the payment, then you are understating the amount of debt you have in order to induce the lender to make the loan to you. Don't mess around with this undisclosed debt payment.

[Mike_B03]

I don't understand when you keep saying it wasn't asked for or requested.

The loan application has a section where it asks you to list all monthly debts you are paying. How much more clearly do they need to ask?

Just know that if they find out, they will most likely deny your loan. It sounds like it would be denied anyway if you don't disclose it, sounds like you're at the limit with the DTI so I guess do what you feel but the stress would kill me.

[Sunshine85]

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@Mike_B03 wrote:
I don't understand when you keep saying it wasn't asked for or requested.

The loan application has a section where it asks you to list all monthly debts you are paying. How much more clearly do they need to ask?

Just know that if they find out, they will most likely deny your loan. It sounds like it would be denied anyway if you don't disclose it, sounds like you're at the limit with the DTI so I guess do what you feel but the stress would kill me.

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+1

How are you paying this debt? Is it via automatic draft from your bank account, or some type of payroll deduction? If so, UW will most likely catch this through review of your bank statements or pay stubs.

Disclose this now, and let them work with you if there are DTI issues. If they find out about the  IRS debt, and I would bet that they probably will, saying it's not on your CBR, or they didn't specifically ask you about it won't fly. It will be viewed as a deliberate omission of information, that will almost surely result in your file being declined. The last thing you want is to spend money on inspections, an appraisal, etc, only to be declined because you weren't 100% up front with your lender.

[Mike_B03]

Not just that, but if its an FHA loan, I understand that they tag your account with comments on why a loan was denied, it stays in the system so if you try to apply for an FHA loan later, they will know why you were denied this time.

As was asked, how do you currently make the payments? If its thru an automatic payment or a check from your account, they may see it on your statements and ask about it.

You could probably always say "Oops I didn't know" but again it might get denied due to DTI or if they feel you weren't honest with them. My biggest thing would be the stress, couldn't handle it.

[beb86]

if its only $100 that shouldnt be too much of a problem for your dti unless you are borderline..the last thing you want is on the friday before closing you get that phone call from your LO telling you there is a problem.

[Anonymous]

If brought up, I will just say it was going to paid by closing and didn't think anything of it. Period  I really should have just paid it off along time ago. Thanks beb86

I pay different amounts each month and it doesn't appear anywhere, so again if it comes up.  This is from 2005.  They will be ordering and reviewing the past 3 years taxes.  Also, if you see one of the post from a girl in the same exact situation said hers was never mentioned, so maybe I will get the same luck. If not, just pay it off.

[Anonymous]

Thank you everyone for your comments and suggestions.  I informed the lender of my additional debt and they said I was still ok with my debt to ratios and my application still is in good shape. Thank GOD!

[Mike_B03]

Good to hear! It'll be a little easier to sleep at night knowing you don't have that in the back,of your head a all times. Good luck with the loan, let us know how it goes.