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They want you to explain all the items in my bankruptcy. But all those items happen all at the same time also for the same reasons that lead to the bankruptcy.
not necessary for mortgages - you can write "my cat needed chemo", "I was addicted to hookers, but I'm better now", whatever you want- no one reads them, they stuff them in the file. Use your imagination & just have fun with it. Tell them how you invested in a genetic-engineering startup attempting to grow wings on pigs, you were attempting to corner the market in your metro area, by buying all the strawberry frosting.. might as well make them entertaining.
I hope no one takes this advice serious, as it would definitely put an approval in jeopardy in many places I have first hand knowledge about. Your suggestions are on par of making bomb jokes to a TSA employee or yelling " fire" in a crowded theater. Okay, not get you arrested, but it would be assumed if you cannot take the application seriously, you most likely would feel the same about paying the loan back.
I currently work at a financial institution where 85-90% of our loans are manually underwritten and 100% are portfolio. This means humans are making the credit decisions. There's no way we would loan someone 850K to someone that treated an explanation like a joke. No way, no how.
Frankly, is it any of their business? I'm assuming this was discharged in bankruptcy? Just write "not enough money to pay," or get cocky and say "discharged per bankruptcy." **** 'em. Or tell them to send it to the underwriter as is, and if the underwriter wants more let THEM ask. I found out my loan officer was just accumulating all sorts of **** she 'might need' and ended up putting a stop to it, loan went through just fine.
Frankly, is it any of their business? I'm assuming this was discharged in bankruptcy? Just write "not enough money to pay," or get cocky and say "discharged per bankruptcy." **** 'em. Or tell them to send it to the underwriter as is, and if the underwriter wants more let THEM ask. I found out my loan officer was just accumulating all sorts of **** she 'might need' and ended up putting a stop to it, loan went through just fine.
Yes, it is the bank's/underwriter's business.
Who would you personally rather lend money to.......someone who lived beyond their means..........or someone who experienced a life-changing event (serious medical issue or unemployment) rendering them unable to pay their bills?
Frankly, is it any of their business? I'm assuming this was discharged in bankruptcy? Just write "not enough money to pay," or get cocky and say "discharged per bankruptcy." **** 'em. Or tell them to send it to the underwriter as is, and if the underwriter wants more let THEM ask. I found out my loan officer was just accumulating all sorts of **** she 'might need' and ended up putting a stop to it, loan went through just fine.
If the person with an impaired credit past wants to borrow money, typically in the hundreds of thousands, it most certainly is the bank's business. Getting a loan is not an entitlement. Let me say that again, the ability to borrow money is not a right. Alternative to writing any letters? In the case of a BK, wait 14 years for it to completely clear your credit report. As long as an adverse event appears on the credit report, it must be explained.
Part of a loan officer's job is to anticipate the UW's request for documentation. Borrowers have a choice, obtain the documentation (while there is plenty of time) the LO requests, or, wait until the UW issues a commitment and run around like a mad person to get the documentation, usually, just days before closing. (I know LO's that do business that way, don't request anything until the UW sees the file and they are always the ones with missed closings and expired locks). I have found 90% of the documentation I request has been needed. Packaging a loan is an art. Presenting the borrower's "case" when the loan is even slightly outside the box requires extra effort. It's when these files are treated as business as usual, borrowers find a multitude of requests that hint a denial may be on the way.
I hope no one takes this advice serious, as it would definitely put an approval in jeopardy in many places I have first hand knowledge about. Your suggestions are on par of making bomb jokes to a TSA employee or yelling " fire" in a crowded theater. Okay, not get you arrested, but it would be assumed if you cannot take the application seriously, you most likely would feel the same about paying the loan back.
I currently work at a financial institution where 85-90% of our loans are manually underwritten and 100% are portfolio. This means humans are making the credit decisions. There's no way we would loan someone 850K to someone that treated an explanation like a joke. No way, no how.
OMG..
did you just try to tell me how responsible financial institutions are?
did you just try to tell me how responsible financial institutions are?
/// getting kinda deep in here.. tiptoeing out..
You get you knuckles rapped because you haven't been paying attention. I work for a credit union, as in NON-PROFIT, as in zero stockholders, as in anti Wall Street, as in member cooperative. But I thought we all moved on from the stupidity of yesterday's greed by these places, because every single one of us has paid dearly, whether by credit tightening or by job losses, life savings loss, or by our tax dollars going to support those that got a bailout. So while I suspect your comments were an attempt at slamming the banks' 10 year old mistakes, I have no doubt lending is more responsible today, to the point of absurdity. And it is because of all those I saw hurt by past mistakes and the subsequent over-crackdown, I cannot find humor in your post. Overnight, under the guise of responsible lending, worthwhile and credible buyers were turned away in by guidelines that went too far.
But what's deep is the many on the other side of the spectrum that haven't caught on that the jokes about lending in a loan file have been over for a long time. I've seen files with less than ingenious letters get turned down at every employer where I have worked. See, it really is simple, when you don't take your own mortgage application seriously, it's kind of unrealistic to have anyone else do the same.
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