Well, we just got the word that the uw denied my husband after 2 rounds of conditions and 2 weeks waiting. The reason... my husband had owed taxes every year since 2008. Even though he is in a payment plan and only owe $6000.00 more and for 2014 we only owed $450.00 they didnt care. They said that "he has not put himself in a position to purchase a home."
During the last 45 days we have paid off a jeep and a harley, paid down all credit card debt to zero to get the DTI way low as the mortgage was going in only his name as I am building a business with my credit.
All for nothing.
Middle score was 670
Annual income of 130k
Same job for 9 years. Same industry for 15 years
75k in savings
Pay $500 to IRS monthly
Pay $400 in child support monthly
1 Car payment of $500
I am just devestated. Our mortgage broker said he sent our file to a "manager" of a different lender and he said it looked like "an easy solid file" and wanted to know if we wanted to move forward with this new lender. My husband said, if he can get it done then to go for it. But, I am just not convinced. We have everything anyone could ever want... my own business, my husband has a wonderful career, our kids are healthy, we have atv's, trailers, utv's all PIF, but we dont have a home of our own. My husbands ex wife royally screwed him (spent bill money on shopping and her friends rather than pay bills) so, we have gotten his credit score up over 200 points and paid off everything on his credit.
Can you use some of your savings to just pay off the IRS debts? That would make the most sense and then you really would be in the clear (given that you have no other outstanding debts). Is there a reason you haven't done that?
We were going to do that, but our LO told us not to because we were in a payment plan. That it would be best to not do anything like that while they are trying to verify what is what.
Their issue was that he has not taken initiative to make sure the appropriate taxes have been taken out of his pay checks to ensure he doesn't owe at the end of the year. BUT we have, we have changed the extra amount withheld every year trying to find what is appropriate, but he gets several raises and bouses a year and 2014 was the closest we have with only $450 owing.
Im just going to pay the IRS now though. I'm just so disappointed. I thought we have done everything right....
I'm sorry - that would be upsetting!
The withholding stuff is actually pretty easy to update too. Do you know what your H has set up? Like your H, I get a very large bonus and have a potential for raises each year. I withhold claiming 0 and then have the IRS take an extra $50 each paycheck. I hate that I sometimes getting money back,and give the IRS my money to hold, but i haven't have to pay this way. Maybe your H wants to do something like that and then have this on hand to show the new lender? There isn't much more someone can do other than claiming 0 and taking extra out to cover any issues.
With everything you are doing, it sounds like you are setting yourselves up well to work with the new lender. I'm so sorry it has been so stressful for you! If it makes you feel better, I have been working with the best RA and the best LO I could have hoped for. However, we have been in escrow for 58 days now with the worst sellers ever (I will write it all up when there is a resolution). It seems like no matter how well things go on one side, there is always a wrench thrown in on another. I'm thnking good thoughts for you with the new lender....
I'd ask your lender if it can be re-submitted w/ IRS debts paid off. Best of luck!