Erika Rae Albert, Austin Real Estate Expert, Exceeding Expectations in Every Transaction (E*Rae Real Estate Group- Powered by eXp Realty LLC)

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Rainmaker
1,449,455
Lyn Sims
RE/MAX Suburban - Schaumburg, IL
Schaumburg IL Real Estate

I'm not sure I'd continue to work with this lender. I thought that the buyer provided those & then immediately (if not faster) the transcripts were asked for.  I think that the LO gets an epic fail.

Dec 05, 2018 09:56 AM
Rainmaker
3,045,566
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
Los Angeles Pasadena Area Real Estate 818.516.4393

Likely time for a different lender.  

Dec 05, 2018 10:05 AM
Rainmaker
589,995
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

Your lender made the assumption that the tax returns provided by the buyer were actually filed. I think many lenders would make the same mistake. Too bad!

Taking the package to a new lender will probably cost even more time. Ask for an extension for close of escrow, if possible. Get the job done. Let's remember that the problem was really caused by the buyers. Evaluate your relationship with the lender after the dust has settled, if it is a lender that you typically use. Otherwise, move on. 

Dec 05, 2018 10:17 AM
Rainmaker
625,414
Candice A. Donofrio
Next Wave RE Investments LLC Bullhead City AZ Commercial RE Broker - Fort Mohave, AZ
928-201-4BHC (4242) call/text

What a dang mess. Have we had lenders pull nonsense like this? Yeah, in the past. It's what we call TP PQs.
And if the lender had properly vetted the buyers, they would have noticed that those taxes hadn't been filed.
Hopefully you can get an extension so that you can close it. If the lender can do it. I could certainly understand zero confidence in the lender at this point.

Dec 05, 2018 01:07 PM
Rainmaker
4,603,317
Barbara Todaro
RE/MAX Executive Realty - Franklin, MA
"Franklin MA Homes"

go to another lender.... sooner rather than later....

Dec 05, 2018 10:02 AM
Rainmaker
89,464
Scott Lawson
America's Home loans - Santa Rosa, Petaluma Mortgage Broker - Santa Rosa, CA
Mortgage Broker FHA, VA, refinance or purchase

You can have them file at your local IRS field office, have them stamped as received and you should be able to proceed. Loan officers do not make it a practice of verifying that a consumer has filed their taxes up front other than by asking the borrower up front and getting copies of their 1040s and all schedules. If the borrower screwed up, it's unfortunate, but not a preventable problem from a loan officer's perspective. The problem will be calculating the penalty for late filing and interest. The lending underwriter will want to make certain that the outstanding liability has been paid...

Dec 05, 2018 06:29 PM
Rainmaker
2,696,894
Kathleen Daniels
KD Realty - 408.972.1822 - San Jose, CA
San Jose Homes for Sale-Probate & Trust Specialist

I've had many not desirable things happen with various lenders. It is why getting underwriting approval up front helps to uncover issues like these that come up at the 11th hour. 

Dec 05, 2018 03:00 PM
Rainmaker
920,933
Valeria Mola
SIB REALTY - Sunny Isles Beach, FL
305-607-0709 SIB Realty

I am sure, you will get another lender.

Dec 05, 2018 01:00 PM
Rainmaker
1,339,773
Evelina Tsigelnitskaya
SIB Realty - Sunny Isles Beach, FL
www.SIBRealty.org 305-931-6931

Agree, need another lander ASAP.

Dec 05, 2018 11:57 AM
Ambassador
2,895,460
Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Yes, Erika Rae Albert, Austin Real Estate Expert - Self-employed individuals can use what is referred to here as a Check-Book Loan. They do, indeed, check that your taxes are filed but, they operate off of INCOME and not what self-employed individuals are known for, lower income shown on their tax returns. We tend to take tons of deductions in order to pay lower taxes!

It's a valid program for those (self-employed) who want to buy before they sell and then refinance 6 months later. The check-book income loans are similar to a hard-money loan. Last I checked (in November), the rate was 7%. HOWEVER, if your lender forgot to obtain those documents, that's a whole other story!

Your folks can visit the local IRS office and obtain those documents. I've actually done that for a buyer myself before! You can salvage this deal!

Good luck!

Dec 05, 2018 07:56 PM
Ambassador
3,727,718
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams fox cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Well at least the lender helped them to find out that they had not really filed their taxes.

Hopefully they will get this sorted out and back on track quickly.

Dec 05, 2018 06:28 PM
Rainer
25,466
Dave Skow
Eagle Home Mortgage - Seattle, WA
Dave Skow

Erika - no lender will close a " normal " loan for a  self-employed individual without transcripts ..if returns werent filed correctly - borrowers should walk the returns into the local office and ask for help with getting transripts         

Dec 05, 2018 03:04 PM
Rainmaker
2,933,939
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

That is the last "oops" from that lender regarding anyone I would work with. Next lender!

Dec 05, 2018 02:39 PM
Rainmaker
1,155,686
Ryan Huggins - Thousand Oaks, CA
www.HugginsHomes.com - Thousand Oaks, CA
Residential Real Estate and Investment Properties

Wow.  That I haven't heard of, but I'm not surprised the way things are going with easing the standards these days.

Dec 05, 2018 02:21 PM
Rainmaker
2,354,585
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

This smells of the famous "carrot" that one cannot obtain but beckons

Dec 05, 2018 01:53 PM
Rainmaker
918,372
Sam Shueh
(408) 425-1601 - San Jose, CA
mba, cdpe, reopro, pe

I will hold off these requests until it is ready to go. Perhaps a waste of time.

It only happened to me once from BoA lender. He apologized later. But it suck.

Dec 05, 2018 01:07 PM
Rainer
121,722
Byron K . Jones
Keller Williams - Exton - Coatesville, PA
List Today - Sold Tomorrow!

go to another lender, preferrably one you work with and can get it done fast

Dec 05, 2018 11:10 AM
Ambassador
1,513,358
Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

Maybe you and your buyer do not understand the different between pre-qualification subject to discovery instead or pre-approval where are documents required have been viewed by underwriting. It also could be a bad lender agreed but this should be a simple resolution by oriduycing the tax returns.

Dec 05, 2018 10:51 AM
Rainmaker
149,134
Erika Rae Albert, Austin Real Estate Expert
E*Rae Real Estate Group- Powered by eXp Realty LLC - Austin, TX
Exceeding Expectations in Every Transaction

I did NOT recommend the lender.

Dec 05, 2018 10:46 AM
Rainmaker
2,677,205
Richard Weeks
Dallas, TX
REALTOR®, Broker

Did you recomment the lender or were they selected by the buyer?

Dec 05, 2018 10:44 AM
Rainmaker
2,720,086
Nina Hollander
Coldwell Banker Residential Brokerage | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

That is a lender that needs to be dropped asap.

Dec 05, 2018 10:32 AM
Ambassador
2,286,986
Fred Griffin
Fred Griffin Real Estate - Tallahassee, FL
Licensed Florida Real Estate Broker

   That is totally unacceptable. 

Dec 05, 2018 09:53 AM
Rainmaker
4,633,120
Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

I have heard about some doing this.

Dec 06, 2018 06:35 AM
Rainmaker
2,823,109
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of Manchester NH's Leading Agents

Yes, unfortanately many qualify with what the buyer submits, the official transcripts can be checked right before closing. In the past, not at all and look where that got them?

Dec 06, 2018 05:07 AM
Rainmaker
4,314,832
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

No.

Dec 06, 2018 02:13 AM
Rainer
104,849
Anthony Kirlew
Keller Williams Realty East Valley - Gilbert, AZ
Helping You Make Fiscally Sound Choices

I guess the question is, "did the approval letter come from the actual lender (as in underwriting) or the loan officer?" Definately find out who dropped the ball.

Dec 05, 2018 10:12 PM
Rainmaker
1,423,316
Bob "RealMan" Timm
Tivoli Custom Homes - Minot, ND
Bob Timm, Project Coordinator for Tivoli Homes

I don't believe so Erika Rae Albert, Austin Real Estate Expert .

Dec 05, 2018 11:45 AM
Rainmaker
39,689
Ricardo Mello
Manhattan Miami Real Estate - Manhattan, NY
Manhattan & Miami Real Estate Agent

Time to look for another lender Erika!

Dec 05, 2018 10:09 AM
Rainmaker
468,007
Peter Testa
Nationwide Homes - Danbury, CT
PETER TESTA

Sounds like this lender throws it all at the wall & whatever sticks sticks. Bad for business. 

Dec 06, 2018 01:45 PM
Rainmaker
1,436,039
Inna Ivchenko
Barcode Properties - Encino, CA
Realtor® • Green • GRI • HAFA • PSC Calabasas CA

It used to be a stated loan.

 

 

p.s. Also... I get an update every two days from my lender and my escrow also follows with them twice/week. So, we usually know what exactly going on long before any issues.... 

Dec 05, 2018 11:17 PM
Rainmaker
4,961,814
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Move on to another loan officer.

Dec 05, 2018 05:20 PM
Ambassador
3,786,011
Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Sounds like this lender goofed and what happened in not acceptable. Hopefully you can get an extension on closing.

Dec 05, 2018 04:08 PM
Rainmaker
4,047,536
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy

Erika,

No, and find another lender.  A

Dec 05, 2018 12:38 PM
Rainer
3,374
Eddie W. de Leon
Premier Mortgage Capital - NMLS 1276465 - Ontario, CA
Your Premier Mortgage Lender

Absolutely and twice on Sunday!  What we do is that we submit all Pre-Quals specially the Non-QM deals with difficult self-employed taxes before and actual Underwriter, even on a TBD property, and have the Underwriter sign off Income, Credit, & Assets.  When this is done we hand the actual loan approval to the Realtor and it makes for an easy closing as all we need is to sign off the particulars of the actual property.  

Dec 12, 2018 12:51 AM
Rainmaker
2,848,622
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Wow, I would not be using that lender.

 

Dec 09, 2018 10:39 AM
Rainmaker
3,831,439
Joan Cox
Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

No, thought they were required on every deal.

Dec 09, 2018 08:28 AM
Rainmaker
2,231,331
Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

Ugh, I would be more than frustrated with this lender and would certainly not refer anyone to them in the future.

Dec 07, 2018 11:21 AM
Rainmaker
700,106
Olga Simoncelli
Veritas Prime, LLC dba Veritas Prime Real Estate - New Fairfield, CT
CONSULTANT, Real Estate Services & Risk Management

Sounds a little bogus to me... on all sides. Frustrating for you, sorry.

Dec 07, 2018 06:47 AM
Rainmaker
771,400
Dave Martin (703) 585-4687
Fairfax Realty - Fairfax, VA
Making Realty Dreams a Reality

Is this some sort of Private money lender? Hard money?

Dec 06, 2018 08:35 PM