PLS HELP! Can I co-sign without tax returns, 1099 instead? (home loan, foreclosure, credit report)
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I am trying to help my mom by cosigning on a property- an owner occupied 4 plex situation- she is a 1st time buyer & a senior citizen.. she is already qualified for 165k but the property is 220k (great positive cashflow investment that would totally change her life financially)
I have income & credit, but I too have not filed last 3yrs. Please guys spare me the moral finger shaking responses, I am just trying to see if there is ANY WAY I can help my mom out with this. She is my #1 priority.
There is no time to file & get transcripts in time to help her on this property... Everyone on here has talked about the days of no doc loans being gone, but is 'no doc' simply everything that is NOT a tax return..?? Meaning, I make 4x what my mom makes, my credit is plenty good enough, I have steady income from one source for the last 7 years & the 1099's to prove it..
1099's, bank statements, etc- NONE of that matters or works under any circumstances anymore to prove my income to a lender? I'm not talking about just going on faith here. You look at my credit report you see my expenses, you look at my 1099's you see my income.. My mom lives off social security & money I send home (she's disabled) & she qualifies for a 165k loan-- is there NO way for me to help her qualify for a mere 55k more than that with any other avenue other than tax returns (which can't be done in time)??
She would be primary w/me as co-sign if any possibility. If I can get a car loan for 55k w/out tax returns, there MUST be something I can do here...
I really appreciate any help or suggestions on this guys, thank you!
Highly unlikely. To the lender, a 1099 is nothing but a sheet of paper that shows income (that you could have made yourself) and unless they have something to compre expenses to, they really can;t go only on a piece of paper. Imagine it like this, you are showing them copies of your bank deposit slips for all the deposits over the last 3 years, do you think that is good enough without some form of withdrawls? and what about any electronic debits from your account? The tax retruns (although you could fake them as well) provides information that is needed to guage your actual income to expenses and your ability to se a certain organization. Also (I know you don;t want fingershaking) but it is very relevant that withut tax statements, your trustworthyness is in the toilet in some lender (mainly busines/investor) who see any suspicious behavior from a tax side as a possible indicator of future flaky action on their loan. It just puts a sour taste in their mouths.
A car loan is completely different than a home loan. The government doesn't buy car loans.
Now.... beyond the financial side, how is your disabled senior citizen mom going to maintain four apartments? As a disabled senior, renting may be much better idea. When she is in a nursing home, the mortgage will still be due, and the nursing home.
Lolawants,
If you haven't filed tax returns for the past 3 or more years, I know
you havent' sent your ES payments in for your taxes, and you are going
to have to file and pay up eventually.
The IRS will be after you, and if your name is on that property,
well, mom will be on the streets.
Don't do it.
Let mom live in a small cheap apartment that she can afford.
This is how people get in trouble taking on debt they really can't
afford in the first place.
How about you start filing taxes and paying your share.
If he doesn't file taxes for years, he actually pays more. Just wait till he sees all the penalties and interest he will have to pay. IRS always gets their money. Doesn't matter if its late. Its true, its actually worse if he co-signs. The IRS will attach the property and could eventually force a tax sale leaving your mother homeless.
If your serious and focused, I think there is a way.
Last year had a client in New Jersey who was self employed, but hadn't filed a tax return in 3 years. We started talking about week before his house was going to be foreclosed upon. He tried relentlessly to save his home, since he could not produce his tax returns to show his income his mortgage bank would not help him.
Day one advised him to send over all his documents, including going to his bank and getting a print out for his checking account for the last three years.
Day two he sent me all his paperwork - the checking account statements, tallied up all his deposits to average out is income to show he could show affordability to save his home.
Day three - looked up on the internet and contacted a few tax accountants, looking for one that would work quickly. Found one - emailed over all the bank statements showing the income.
Day four the accountant sent me over a 2011 tax return. We were able to forward to his mortgage bank.
Day six the day before the sale date, his lender agreed to postpone the foreclosure and work on a loan modification.
Point - contact an tax accountant that can help you file for the years you did not file, it is simple as that.
Check out IRS link - Tax Topics - Topic 153 What to Do if You Haven't Filed Your Tax Return
As for your 1099's up have, looking at the last two years add up your gross income, minus your expenses, and produce a profit and lose statement. With you income and your mother's, should lower your DTI ratio to qualify for the larger amount.
The fact that year have a car loan, tells me you have a credit score. Not reporting your income can have effect on how high your credit score is. I am willing to bet it is somewhat "dinged up". Since this is an owner occupied property - suggest looking into a FHA loan. See link - FHA Loan Requirements
Good Luck....
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