Tax return question for modification

[tc4gold]

First Federal is requesting I send in my tax return including all schedules which because of rentals is lengthy and it doesn't show the problems I have encountered this year with 1 being foreclosed and 3 being sold short or DIL. Do I have to send all pages or can I just send the first few that show adjusted gross income.

Also, in calculating my monthly income (only rental which can be up and down) to expense. I have a surplus right now of $523 but that is cutting all expenses to the bone and I know I have more expense than I am reporting here but I don't want them to deny me a modification to a fxed rate hopefully at 4% which I calculate I can afford and keep ,my house which happens to be a triplex and I live in the front.

Can anyone tell me what the magic number is for a surplus. I am not counting any medical expense or insurance as I can't afford it but there is always something.

PLease advise as 18 months ago, they denied me a fixed rate because they said I didn't earn enough so they put me into a monthly adjustable. I am terrified it will go up really high even though it is low now and I am only paying interest. I want a fixed with principal and interset.

Thanks In advance.

[mimirayo]

If they ask for it all....you have to give it all. Logic would tell you that the know this was LAST years return and this years will reflect the hardship. This will also give them an idea as to the "riskiness" of your being able to make the payments if you get a modification, especially if the hardship you wrote was temporary

[imlars]

In my experiance lenders like to see a surplus of about $150 per month to cover emergencies. Anything over that is too much and if you show a monthly deficit, unless your loan is a Fannie or Freddie, the only recommendation you will get is for a short sale. They use the tax returns to verify your income and assets over the past 2 years. They don't consider it as a picture of what your financial status is now. They want the entire tax return and they want it signed by you, not your preparer or your electronic signature. You can just sign the copy you have now if it isn't signed already.

[tc4gold]

Hello, Thanks for the imput, okay I will send it out and will make sure I include all the expenses I have though I will have to average some of them because they are not consistent month by month. This board is great for all the help and advice. If anyone has dealt wth First Federal of Los Angeles and had any success please post here.

THanks