Brianna, You should be just fine. Most likely the IRS will process your returns by the time you close and even if they don't you should be okay. You could even call the IRS to ask when they think they will process them. From experience they shoud be able to tell you and if you submitted your returns it shouldn't take more than a couple of weeks for the IRS to file them so your lender can get the transcripts. What did you make in 2010? It'll all work out. Based on what you said above, all of this is normal....just stay in close contact with your loan officer to make sure you are doing what's in your power to satisfiy the conditions. If indeed your 2009/2010 income won't qualify you for the loan, then you'll just have to wait for the 2011 returns to be recorded. It'll all work out. Congrats on your new home!
Chad
Chad E. Bahnsen- Mortgage Originator, NMLS# 127719
Mortgage Network, Inc.- Corporate NMLS# 2668
14 E. Stratford Ave Ste 3C
Lansdowne, PA 19050
Cell: 610-457-7262
Office: 610 622-2212
Fax: 1-866-590-3806
E-mail: cbahnsen@mortgagenetwork.com

Well Brianna?,

1st of all, dont sweat the small stuff... because It's ALL small stuff.

2) On your Agreement of sale... check out the terms for conditions under the Mortgage contingency clause, you should have so many days from the point of Mtg Commitment date to satisfy conditions?

3) Only God can tell you what some of these idiot underwriters are doing on their piles of files in their office.

I Know it sucks but.... dont let em see U sweat.

-All the Best John Curci RE/MAX - 215-757-2889

This same scenario is part of the reason why I left BofA and direct lending back to brokering loans on the wholesale market. Your lender is stuck for the moment because they have to satisfy their investors to sell the loan once it’s closed. But you have no worries, they will get it closed, just give them what they ask for with a good attitude, our job can be stressful. I had a similar loan at the very end of December. I had my clients do a profit and loss and I also told them to give me 12 months business bank statements. I looked at Profit and loss and bank statements along with previous two years tax returns and it all made sense. FHA doesn't require audited P&L's or tax returns that are processed by IRS early in Tax season, its 99% of lenders that due and for good reason, they tired of being sued and burned over manipulated documentation. I used my 2010 and 2011 P&L for income and supported the trend with 2009 taxes and cleared underwriting Jan 15, 2012 with2010/ 2011 income with unaudited P&L.So you have options if all fails! As long as you paid your full taxes due when you mailed in your returns you will get cleared in time. The lender is waiting just like you and no matter who you get involved or how far you bug everyone trying to get it escalated they are in the dark just like you and there will be a lot of wasted negative energy. I do believe we are at the very bottom of thereal estate pricing market and at the lowest interest rates so you hit the bulls-eye buying at this time period:)

Brianna,

Deep breath. Stay in communciation with the bank, and you will get through.

this is the mortgage business these days. an era of weak underwriting, now has led to an era where every thing is scrutinized - in triplicate. NEW underwriting conditions may be asked of you late in the game. What is "fair and reasonable" is not the point. banks lost a lot of money on bad loans, now they are scared. they have them money, the buyer wants to borrow. give the bank what it wants, or there is no money. as infuriating as it may be.

remember, the "processor" and even the "underwriter" are just regular people like you. maybe in fear of their boss or for their jobs, and not necessarily willing to deviate from policy on the basis of an email. Try to talk to someone, becuase if you can, you may bet answers that make sense, or be able to make the other party understand where and how what you have provided answers one or more of their requests. if you cannot, get the loan officer to kick it up his or her chain of command if you get no response.

The good news is that you sound like a responsible, on top the my situation person. therefore... the situation IS in YOUR hands, which sound capable. Also... your income trend is in the right direction.

The advise to "ask mortgage people about mortgages" could not be more sound. Good agents know a lot, but even the "fair" mortgage people know more. In any case YOUR mortgage company is the only one that matters.
the lowest blood pressure and best result will be to meet their needs.

Patience & calm. Remember the bank wants to lend as bad as you want to borrow - even if it seems otherwise.

My recommendation is to provide everything that is requested by the bank and promptly so as not to hold up your closing. Do not take it personally, know that the process is "black and white" these days, and whether you were borrowing $50,000 or $5,000,000 you would be treated the same way. The processor will be the one in most cases to answer the questions you ask, and if you have a mortgage rep that can front those inquiries to the processor it will be helpful. I'm finding that 2 weeks before close banks are reverifying employment verification and earnings and that means a redundant request for documentation that rattles many but is now common practice. So just breathe deeply, comply with requests and you will get there.

Good luck to you,
Jeanne Feenick
Unwavering Commitment to Service, Unsurpassed Results
Unwavering Commitment to Service, Unsurpassed Results

This is not an uncommon occurrence--the mortgage providers are often redundant in their request for documents. The request you received is probably a 'form' letter and parts of it may not apply to you. Speak to your mortgage consultant to clarify they have all the paperwork they need - if you already submitted it, you should be fine. Also, your consultant should clarify that your purchasing based on your 2011 income..even if they ask for the 2009 papers, it shouldn't affect this transaction. They need a paper trail to comply with their due diligence requirements. You should have your tax docs from the IRS before the end of February...that condition can be met when it is received.

Hi Brianna,
Sounds like you already mailed off your return. If you already prepared your 2011 return, why don't you file electronically directly to the IRS. If you included payment with your mailed return, eventually the payment will be received, processed and cashed. In the meantime, it gets in the system much quicker and a signed copy and proof of payment of taxes due should suffice. Being you are 28 days from settlement, there is no need for panic anytime soon. Hopefully you are represented by a Realtor and he/she along with your mortgage broker will be working diligently to get your transaction to the settlement table in a timely manner. Call your agent and make sure he/she is on top of everything and in communication with your mortgage loan originator. That is their jobs, to provide smooth sailing to the settlement table. Don't stress. It will all work out. Good luck with your move.

All the best,
Larry Lichtman
REALTOR, Property Manager
Your Real Estate Resource For Life
Cell/text: (267) 254-7994

Brianna, on your AOS... you have a mortgage contingency clause that shoud state a deadline of when Mtg commitment is due.
It shoud also state that if there are any unsatisfied conditions that are not satisfied,,, then buyer + seller may agree to extend this due date period out another 7 days if needed.

Again, I cant guide you throught this process but I would tell your Agent to STEP UP TP THE PLATE AND GET YOU SOME ENTITLED ANSWERS!!!!

I understand your frustration,,,,,

John Curci RE/MAX Properties 215-757-2889

Brianna, on your AOS... you have a mortgage contingency clause that shoud state a deadline of when Mtg commitment is due.
It shoud also state that if there are any unsatisfied conditions that are not satisfied,,, then buyer + seller may agree to extend this due date period out another 7 days if needed.

Again, I cant guide you throught this process but I would tell your Agent to STEP UP TP THE PLATE AND GET YOU SOME ENTITLED ANSWERS!!!!

I understand your frustration,,,,,

John Curci RE/MAX Properties 215-757-2889

Brianna..The need for the transcripts is necessary so that we as a lender have some assurances that you did not just whip up some numbers in order to qualify (of course we have no control if you amended those returns at a later point). Without those transcripts, most likely they will need to go off 2009 and 2010. How tight was your debt to income ratio. This is all something that your loan officer should be able to explain to you.

Hello,

If can't get 2011 tax transcripts then you wouldn't receive the clear to close on your loan. Your loan processor or underwriter should be able to tell you how long it takes for an underwriter to review the fle once conditions are submitted. The problem with tax transcipts is that the IRS can't tell you when will be able to pull tax transcripts, all the lender can do is to keep trying to check to see if comes back.
There is another option to close your loan but may not be able to do that with current lender as you already provided the 2011 tax return. The other option is to provide 2009 and 2010 and an audited P&L statement for 2011 by an accountant and then we can use income for 2011 with the 2010 income to calculate qualifying income.
If you need a second opinion or have more questions feel free to call me at 610-906-3109.

John R. Thomas
Certified Mortgage Planner - 38783
Primary Residential Mortgage