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Profit and Loss Statement

Discussion in 'Loan Modification' started by houseowner_nh, Jan 28, 2010.

  1. houseowner_nh

    houseowner_nh LoanSafe Member

    My BofA MHA package requires me to send a copy of a quarterly Profit and Loss statement as a income document for self empoyment. They don't specify if it should be CPA produced or if I should use any specific form.
    I think I will produce my own Profit and Loss statement and send it along with my most recent tax returns.

    I will appeciate your thoughts!

    Thanks!
  2. 0334231

    0334231 LoanSafe Member

    Just make sure that your Profit & Loss matches or jives with your personal tax returns. Futhermore, they will use your surplus from your Profit & Loss as true income, regardless of what you put down for income on the worksheet or your tax returns....you can do them yourself, I did my own for WF and it was acceptable to them...

    Remember P & L's are a strong deciding factor....
  3. scoot

    scoot LoanSafe Member

    I have WF and I sent them P&L I did on my own, not from a CPA and they accepted them.
  4. skeeter55

    skeeter55 LoanSafe Member

    X2 all the above. Just make sure you also send in the original bank statements, not down loads off the Internet. As you know every page on everything you send needs to be signed and dated with the loan number on them.
  5. houseowner_nh

    houseowner_nh LoanSafe Member


    Thank you very much for your answer, what do you mean by "surplus"?

    On my P & L statement I have all my income, then I minus all the expences, mileage, home office deductions, depreciation etc. and get the number for my adjusted gross income.

    Thanks!
  6. houseowner_nh

    houseowner_nh LoanSafe Member

    Thanks for your answer,
    I havent been asked to send any bank statements for some reason, I dont know if I should call B of A and ask them if I should send them as well!

    What do you think?
  7. lisasxr

    lisasxr LoanSafe Member

    I would include a line for accrued federal and state (if applicable) taxes.
    They allow for W-2 employees to expense the withholdings, so should self-employed.
  8. caguy

    caguy LoanSafe Member

    From HAMP FAQ:
    Q11. Are audited profit and loss (P&L) statements required when verifying income for HAMP?
    Ans: Audited P&L statements are NOT required for HAMP.
  9. trinity45

    trinity45 LoanSafe Member

    Would a profit and loss statement be even necessary if a tax return is provided for the same period ? A profit and loss (schedule C) for all self employed persons is included within the 1040 tax return.
  10. caguy

    caguy LoanSafe Member

  11. 0334231

    0334231 LoanSafe Member

  12. Muddy

    Muddy LoanSafe Member

  13. qikvixen

    qikvixen LoanSafe Member

    Some banks are asking for audited P&L's even though it isn't a requirement for HAMP, just so you know.

    Like everything else related to HAMP, the banks seem to be writing their own rules and the government is fine with that, it seems. :(
  14. 0334231

    0334231 LoanSafe Member

    As for audited p & l, I did not have that experience. So, I can't relate. Wells Fargo did not require Certified P & L's...As for shwing a loss regarding your P & L, that's fine , but you must show somehow with income and your bills that you have a little surplus or adjust you P& L , things that are subjective...When doing P& L's you have thins that are subjective: Like car gas, office supplies and sometghings that you pay someone to do , you an do your self, so you can show a minimal profit. Granted, it must all jive with your coporate and personal taxes...
    Example:

    Let's say for the year you of 2008 of your P & L you spent 20K in expenses and your Corporate Tax returns shows you spent 10K, now you have 10K unaccounted for.....do what you have to do but it must make sense if called into question...they will average it out for the year...When they did ours, they used our profit from the business as our true income, minus personal expenses...
  15. Muddy

    Muddy LoanSafe Member

    Thank you. It's just that one week our P&L may show a profit, then after entering all my AP, it may not. One or two good jobs, we have a profit again. It's just "really" tight.

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