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Old 06-16-2010, 01:53 PM
 
40 posts, read 147,406 times
Reputation: 42
Unhappy No Tax Transcripts = No Mortgage (Question)

Hi everyone,

I just want to verify some info my LO gave me so that I'll know how to proceed.

We were set to close on June 30th with an FHA loan. My husband is the only one on the loan. He did not file his 2008 income taxes until this year (long story). As such, he did not have the 2008 tax transcripts to give to the LO.

The IRS won't accept an e-file for a 2008 return, so we have to send it to them via snail-mail. Due to the influx of folks taking advantage of the homebuyer's tax credit, the IRS told us they currently have a 12 - 14 week backlog on paper orders.

The LO says the transcript is the only item she can legally accept (ie, the H&R Block prepared return and receipt from IRS would not suffice), as transcripts are required by law for all government loans. However, another lender has told my husband he can help us close without the transcript.

Which one is telling the truth?

I'd appreciate advice from an LO or someone who has experienced this situation, but all advice is welcome. If you need more info, please let me know and I will try to clarify.

(I hate these last-minute snags, and I feel for everyone, buyer or seller, who has had to go through them.)

Best wishes to all,
Janna
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Old 06-16-2010, 02:00 PM
 
Location: Laguna Niguel, CA
768 posts, read 2,722,891 times
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Not all lenders require a copy of the transcript, some will accept a copy of the tax return stamped by your local IRS field office but less and less lenders are accepting them that way. Find out from the new loan officer exactly what would be required, and ask them to verify with an underwriter on it as well. If they are told be an underwriter it would work, and you can get all of the required documentation, then I don't see why it wouldn't work out.
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Old 06-16-2010, 03:13 PM
 
21,477 posts, read 35,351,953 times
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I have heard the same thing Shane stated: fewer lenders will accept the physically stamped file. I think the FEAR is that something can be amended to the file in two or more IRS offices and only reconciled in the printed/ returned transcript, but the odds of that are so slim that you would really need to be a professional scam artist...
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Old 06-16-2010, 03:57 PM
 
Location: Plano, Texas
1,672 posts, read 4,337,100 times
Reputation: 640
Same thing here... The lenders i deal with require they pull the tax transcripts from the IRS.
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Old 06-16-2010, 04:49 PM
 
40 posts, read 147,406 times
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Quote:
Originally Posted by ShanetheMortgageMan View Post
Not all lenders require a copy of the transcript, some will accept a copy of the tax return stamped by your local IRS field office but less and less lenders are accepting them that way. Find out from the new loan officer exactly what would be required, and ask them to verify with an underwriter on it as well. If they are told be an underwriter it would work, and you can get all of the required documentation, then I don't see why it wouldn't work out.
Thank you, Shane. I will try this.
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Old 06-16-2010, 05:45 PM
 
68 posts, read 272,650 times
Reputation: 25
Even if you don't supply them with transcript, they will need to pull it from the IRS and if you didn't file, there will be nothing to pull from to compare accuracy, it's the form called 4506-T form. Both lenders that I've worked with all required this form to be signed for verification with the IRS.
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Old 06-16-2010, 06:11 PM
 
Location: MID ATLANTIC
3,911 posts, read 8,245,269 times
Reputation: 2901
I am in the middle of this situation right now. I have a vet that served 5 tours in the Middle East, along with his wife, an MP with the Marines (also served in Iraq) that had been given some bad advice. They were told if they didn't owe, they didn't need to worry about filing on time. Life, marriage, back and forth to the war zone, having a baby somewhere in there, oh, and 3 moves made it very difficult. It wasn't until they were under contract we realized the problem. On June 3rd, we went to the IRS to file his return. I was ready for the 8 week answer (but was really surprise just how cold those folks really were.....business, even brisk I expected, but this was worse). We immediately drove to his Congressional Reps office and completed a request for assistance. When they saw he was under contract and a decorated vet, they had the Congressman sign a hardship appeal. I won't know until next week if we will make the transcripts in 4 weeks or not. We deliver our loans post-closing and work with many investors and not one would agree to accepting a file without transcripts. We can't orgininate a loan we can't deliver immediately after closing.

Find out who your Congressman is where you live now and where you are going to move. Contact one of them immediately. Most have IRS liasons. Go into the Congressperson's local office, face to face will get you a greater sense of urgency.

What you have been told is correct....Delinquent returns can not be filed electronically.

Good luck
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Old 06-24-2010, 10:51 AM
 
40 posts, read 147,406 times
Reputation: 42
Quote:
Originally Posted by SmartMoney View Post
I am in the middle of this situation right now. I have a vet that served 5 tours in the Middle East, along with his wife, an MP with the Marines (also served in Iraq) that had been given some bad advice. They were told if they didn't owe, they didn't need to worry about filing on time. Life, marriage, back and forth to the war zone, having a baby somewhere in there, oh, and 3 moves made it very difficult. It wasn't until they were under contract we realized the problem. On June 3rd, we went to the IRS to file his return. I was ready for the 8 week answer (but was really surprise just how cold those folks really were.....business, even brisk I expected, but this was worse). We immediately drove to his Congressional Reps office and completed a request for assistance. When they saw he was under contract and a decorated vet, they had the Congressman sign a hardship appeal. I won't know until next week if we will make the transcripts in 4 weeks or not. We deliver our loans post-closing and work with many investors and not one would agree to accepting a file without transcripts. We can't orgininate a loan we can't deliver immediately after closing.

Find out who your Congressman is where you live now and where you are going to move. Contact one of them immediately. Most have IRS liasons. Go into the Congressperson's local office, face to face will get you a greater sense of urgency.

What you have been told is correct....Delinquent returns can not be filed electronically.

Good luck
Hi SmartMoney,

Thanks for the advice! I contacted the Congressman's office and am waiting to hear back. I will go down in person if I don't hear back soon. Did you submit the hardship letter to the lender in lieu of the tax transcript, or did the Congressman pull some strings to make the IRS produce the transcript faster?

How did your situation turn out?

Thanks!
Janna
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Old 06-24-2010, 09:03 PM
 
Location: MID ATLANTIC
3,911 posts, read 8,245,269 times
Reputation: 2901
Not as good as I hoped.......we're still waiting......it's been a tough road on this case.

Hoping tomorrow has some good news.
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Old 08-07-2010, 11:29 AM
 
2 posts, read 22,145 times
Reputation: 12
Any updates on your situation Smart Money? What about you DFW_Freelancer?
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