Income Verification Information

so-cal-gal

LoanSafe Member
#21
Moe,
My boyfriend lives with me, but is not on my mortgage note. He pays me $1,000/mo for rent, but he also gives me money to pay his own personal bills through my checking account. My income is quite low, but with rent I should qualify. The problem is that BOTH of our expenses flow through my checkbook. He has a significant income, but he also has very high expenses with 2 kids in college. I have large deposits in this account....so...will Bank of America allow me to show what money is my employment income, what is rent, and what is his? I heard that if you show large deposits exceeding your income you may be denied for that reason. Any help would be greatly appreciated! -Rose-
Get a separate checking account opened immediately for that boyfriend. Stop putting his funds in and paying his bills from YOUR account.

As it is right now, if you have to supply one of the months of checking account info where his deposits are present, you will need to mark up the deposits and payments that are his. Mark it CLEARLY right on the copies your are sending them and then show the actual total of YOUR deposits. Circle those and put a footnote with them that then is tied to the spot where you note the total of YOUR deposits.

This is the only way to draw sufficient attention to what you are trying to get thru to them. The processors working with the bank statements do not check the info that has been provided. I'm speaking from EXPERIENCE with BofA Village Idiots.

Also, they may ask if he contributes more than just the rent to your household budget.
 
P

parklandgroupoh

Guest
#22
For a loan in Foreclosure, let's say a 50k loan or something. How much do we have to come up with to get things right or at least stable?
 
#23
As mentioned in this thread, http://www.loansafe.org/forum/makin...why-must-borrower-submit-irs-form-4506-t.html, you can find 4506 tax info there and ask questions. This thread will be for income verification information and an open discussion for members to share and help one another.

Q32. Is the borrower eligible for the HAMP if he or she is not required to file a tax return?

Yes. Such a borrower must document why he or she does not need to file a tax return. The servicer must review and approve this rationale.

Q33. If the borrower can provide two pay stubs that show current earnings used for qualifying purposes under the HAMP, can the servicer use only that information and not require YTD earnings?

No. Documentation of YTD earnings is a requirement of the HAMP. Current earnings should be used to qualify the borrower. YTD earnings can be used to substantiate additional income such as bonuses and overtime.

Q34. Could you please clarify the intent behind “third party documents†related to self-employed income?

Many self-employed borrowers use third party sources for documenting their financials. Examples of third party documents include: financial statements certified by an accountant, business bank statements or business tax returns prepared by an accountant. A borrower may provide this information to help document his or her income.

Q35. Can income of a household member not on the original note be used in the income calculations to qualify for the modification? If so, would it require that the person be added to the Note for the modification?

A borrower has the option of disclosing a household member’s income (where the household member is not included on the Note). Servicers should include non-borrower household income in monthly gross income if it is voluntarily provided by the borrower and if there is documentary evidence that the income has been, and reasonably can continue to be, relied upon to support the mortgage payment. All non-borrower household income included in monthly gross income must be documented and verified by the servicer using the same standards for verifying a borrower’s income. The borrower may elect to add a new borrower to the note, but it is not a requirement in order to include the household member's income in the Home Affordable Modification evaluation.

Q36. If income from other non-borrower household members is considered under the HAMP, should a servicer also consider expenses for the other household members?

A servicer should not consider expenses of non-borrower household members but may consider the percentage of his or her income that the non-borrower routinely contributes to the household.

Q37. What action should the servicer take if the tax returns do not align with the paystubs provided?

The servicer should ask the homeowner to explain material differences between tax returns and income documentation, and document such differences in the servicing system. If the verified documentation reasonably indicates that a borrower is committing fraud, the servicer should not extend the modification.

Q38. For a loan in foreclosure, may a servicer require the homeowner to make the initial payment in certified funds? May a servicer require certified funds on subsequent payments?

Servicers should continue to follow their current practices, subject to applicable law and the mortgage documents, as it relates to requiring borrowers to make payments using certified funds. Servicers may not impose any stricter standard for payments due under HAMP than are applied in the Servicer's other loss mitigation programs.

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I want to know more about your declaration in Q.no 32. I have not filed tax return ever as I don't lie within the prescribed limits. Can this reason be valid to get approved for HAMP.