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I've been reading a lot on this forum and never posted, but I thought I'd share my situation in hopes that it can help anyone who finds themselves in the same boat down the road.
To begin, my wife and I are self employed -- which of course makes the whole loan-getting process a little different.
Loan details: We went conventional, 30-year w/ 20% down. 0-DTI (until that loan kicks it up anyway hah).
We found a home late December, put in a offer, it was accepted. We then began the whole escrow process. Because we are self employed, we had to wait until the end of the year so we could file our 2013 tax return to have the most accurate picture of our income.
Our loan process was pretty smooth, approved, received conditions which we met all of them except for one. The lender required our 2013 tax transcript. In theory, this is no big deal. We signed a 4506t form, it was sent to the IRS -- but the transcripts came up empty, the IRS showed that they had no processed our return. This is February 10th. We are due to close on the 19th...
I called the IRS and spoke to an agent. The issue is that our tax return is a "balance due return", meaning, we owed money. We had paid what we owed at the same time that we filed. The IRS showed that they indeed had our return and payment, but here is the kicker. The IRS will only process "balance due" returns after returns that are due a refund are complete. Meaning, as the agent said, they won't process our return until late April/May at best. Not exactly a great timeline if you're trying to close on a loan before Spring
As it turns out, I was able to get some traction in two avenues that I can recommend are worth trying if you find yourself in the same boat. First, our LO wrote a letter explaining the situation and requested an exception. This is what ended up happening.
The other thing that I did which actually worked as well was I contacted my local assembly person, congressmen, and state senators with a 'nice' but urgent letter asking for help. As it turns out, several hours later I had contact from the congressman's office AND senators office stating that they had someone working on my issue. And wouldn't you know, our return got 'bumped' up the line. I was shocked to say the least!
Anyway - this is not to say this will work for everyone, but it certainly is worth a try if you find yourself in the same situation.
Some lenders do not require the transcripts for 2013, just proof that you paid (if you had to pay), or proof that you filed, such as a stamped return or we verify using a website such as wheresmyreturn dot com.
Believe it or not, Fannie Mae only recommends the 4506T as a QA tool and never meant for transcripts to be ordered on every file. Where the OP got into a jam was the self employment and wanting to use that increased income to qualify. So, back to Fannie Mae, as long as the loan is going to Fannie Mae, document as Pfhtex outlines that the new taxes are, indeed, the new tax returns and Fannie does not have a problem........but if it's going to an investor, overlay hell is upon you.
What is curious about these early filings to qualify, how exactly do they vary from the prior year? LOL, we are seeing a slew of not only 2013 returns with increased incomes, but 2012x's (Amended Returns), to get incomes even higher with thousands being paid in back taxes.
Believe it or not, Fannie Mae only recommends the 4506T as a QA tool and never meant for transcripts to be ordered on every file....The dance steps are getting tricky.
Message to the OP - someone is looking out of you....
Per Smart Moneys comment - my tenor as a L/O, out of the 1000's of loans originated, only once a 4506T was ordered.
The borrower was reporting $76,000 income appearing his W2. The underwriter question one of the number's appearing faded. The report came back showing $45,000 (borrower worked at Firestone), immediately the deal was dead. The borrower said to argue about all his time and money spent for the appraisal. We shut him down saying we were calling the police and report him for bank fraud…
I had a similar issue with not as much time to spare. Set to close May 12, no extension available. On May 6th, I learned that L/O did not have access to tax transcripts yet, and UW was requesting them. I checked online and sure enough the transcripts were not available yet.
Because of these forums, I knew that contacting a Tax Advocate was my only hope. I called their 877- number and they transferred me to the Accounts department where I was informed that there is what they called a 'sanitized' version of the transcripts available, and usually those are accepted by the banks. They will offer to mail it to you (takes 5-10 days) but you can request for them to fax it to you.(free)
Because I was not near a fax machine at the time, I took their phone number and called back this morning. The trick here is, that if you call the Accounts department directly, the prompts will take your information, and a recording will tell you that your transcripts are not yet available...then it hangs up....ugh!
In order to talk to a real person, I had to call the Tax Advocate number and ask them to transfer me to the Accounts department. Once transferred, I explained my situation again and they faxed the 'sanitized' transcripts to me while we were on the phone.
Talked to my L/O after I sent him the papers, and it sounds like the underwriters approved them as usable.
I really appreciate everyone's information on the forum, and hope there are no more issues and we can close on the 12th.
I had a similar issue with not as much time to spare. Set to close May 12, no extension available. On May 6th, I learned that L/O did not have access to tax transcripts yet, and UW was requesting them. I checked online and sure enough the transcripts were not available yet.
Because of these forums, I knew that contacting a Tax Advocate was my only hope. I called their 877- number and they transferred me to the Accounts department where I was informed that there is what they called a 'sanitized' version of the transcripts available, and usually those are accepted by the banks. They will offer to mail it to you (takes 5-10 days) but you can request for them to fax it to you.(free)
Because I was not near a fax machine at the time, I took their phone number and called back this morning. The trick here is, that if you call the Accounts department directly, the prompts will take your information, and a recording will tell you that your transcripts are not yet available...then it hangs up....ugh!
In order to talk to a real person, I had to call the Tax Advocate number and ask them to transfer me to the Accounts department. Once transferred, I explained my situation again and they faxed the 'sanitized' transcripts to me while we were on the phone.
Talked to my L/O after I sent him the papers, and it sounds like the underwriters approved them as usable.
I really appreciate everyone's information on the forum, and hope there are no more issues and we can close on the 12th.
Pond! The Doctor would like to know how you escaped the Weeping Angels! I hope you & Rory are happy in your new home!
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