can you recommend a loan officer or mortgage company that will listen to reason? (Union: for sale)

[naeem5]

I own a house that should sell for 160-170K.
I have stocks worth $85K.
I have $9000 in cash.
I have other projects planned so that is why the house is for sale.
As things play out, I need a very modest home and have found a foreclosure I want. $42,000.
I can not seem to get a loan. The house being for sale is being looked at as a non liquid asset. Well, the fact that it is for sale shows them where they will get their money. I'm going to pay the loan off as soon as the house sells but in the mean time I'm missing out on small homes at decent prices and quite decent living conditions compared to what I have.
My credit score is 749. GOOD? Well Home Path only requires 620. Sounds good for me. Home Path loan application rejected.
Bank of America said my credit risk was tier 1 level 1 which again is great.
They are getting me on debt to income ratio like it is the bible.
How did I get a score of 749 and tier 1 level 1? Open your brains lenders, by paying my bills on time. You see, I'm on $1060 s.s. disability, and averaged $298 a month self employment income in 2008-2009 = income of $1356. My only debts are credit card $346, another loan of $5000 and the payment is $100. I get 32% when I divide debt by income.
The mortgage on this house will only be $204. I'm paying $171 right now for lot rent = same as a mortgage. It does not take a mathamatician to see that I only need another $33 to pay the mortgage. Of course there will be insurance and property taxes but with insurance on the 160K house only being $42 a month and the taxes $83 a month, the taxes and insurance on $42K house will be low and that and the 204 mortgage payment should be maybe 245 and makes my debt to income ratio be 50.88%. I have passive income from stocks as well. They are getting me because of some bad luck in 1998. I had a ton of capital losses from stocks. Since your losses offset your gains, if you have alot of losses, you can deduct up to 3000 a year and it is SUBTRACTED from your wages before you figure your taxable income. Since it is subtracted it is a CREDIT of sorts, a deduction like a child credit, depreciation, even a 3000 credit for owning two cats. The lenders are looking at this 3000 capital loss carryforward as an INCOME LOSS for the current year. That is backwards, it is not lossed income. It makes my taxable income 3000 lower. It's a credit and if I could get the lending industry to court I could win my case before judge and jury. You see when they count that 3000 credit as lossed income it makes my income look smaller and they are calculating a much higher debt to income ratio. That 3000 capital loss carryforward is not lossed income. 100% not. I need to find some place to borrow 42K with an FHA loan, 3.5% down, 5% down, etc. or other type of loan, maybe home equity loan.
It seems all the places I go to are all looking at the 3000 capital loss carryforward as an income loss for the current year. It's not at all.
They are letting their computer systems and software kick me out and reject my application. I need someone who can use their brain and see my assets and income and why that 3000 capital loss carryforward is more of 3000 INCOME than a loss, and "manually" do the loan so it is approved.
I plan to pay it back when the other house sells.
high credit score and low credit risk are being tossed out of the window because of some computer calculated ratio and the underwriters don't understand capital loss carryforwards. It was a loss of a lifetime in 1998 and thankfully the IRS lets me use 3000 a year of it to offset my income tax.
The lenders are looking at that in the wrong way.

Anyone know any loan officers?

I've tried Family Trust Credit Union and Home Path through Wells Fargo.
I'm being considered by Bank of America at the present time but the process does not seem to allow for human intervention that analyzes the assets and income and debts and WHY the credit score is high and the credit risk level is tier 1 level 1.

I've already gotten advice to wait until the house sells and then pay cash for smaller home. My 1st ammendment rights under the constitution are being violated by my landlord and have been for 9 years and I'm ready to move, past ready. It's bad to walk around town and everyone you see can do this or that and you can not.

I'm looking for a loan versus waiting until the house sells.

[plotzonit]

I feel for you and see your point, however, if this were the "heydey" time of a few years ago - you'd be approved no problem. Banks and lenders are being more cautious now because of the state of the economy. I refinanced my home last year and I had to jump through hoops (I actually got the loan for my home in 2001 when I HAD NO JOB! Talk about crazy on the bank's part, right?). But the refinance - Ugh!!! I don't want to go through THAT again! I made it by mere millimeters! It's not going to be so easy for people to get approved anymore because "easy" approvals are what got us into a terrible mess financially throughout the country. Unfortunately, the consequence is that the people who played by the rules and have good credit are also suffering.

[rdub1968]

If you have been working with BoA, I hope you were working with a loan officer and not the person you get when you just call the number for a loan.

We relocated due to job loss and were told at first we didn't qualify since we had a home still and our debt to income ratio was too high. But a realtor recommended a loan officer (VP) and she helped us out with no problems since there is a clause for relocation due to job loss.

My point is, try to get someone higher up - not just the first level support person.
Can your realtor recommend anyone?

[naeem5]

I'm working with someone at B of A who calls others when they have questions. They gave me a loan of $47,500 last year and my debt picture has vastly improved. The seller raised their price 20% when they thought they had a fish, so I walked from that sale and did not need the loan.

My debt to income ratio was way over 50% despite a credit score of 749 and a credit risk of tier 1 level 1 which is very good. I've paid down debt and now my debt to income ratio before a mortgage is 32%. The mortgage on what I want to buy is $200 a month.

They are getting me on my capital loss carry forward from stocks from 1999. I had tremendous losses and you can only claim 3000 a year and it is subtracted from your wages. On my tax return, line 1 is my wages. Then down on line 13, I think, is the (3000). I'll have that every year forever. That is how much my losses were in 1999. These lenders are looking at this (3000) as a loss of income for 2009.
????????
It is not a loss of income it is a CREDIT, it is subtracted from my income to lower my taxable income. It's like an itemized deduction.
When they "add this to my income" it makes my debt to income ratio go straight up and too high.
Since I am on disability and not taxed the (3000) willl never help me or hurt me on my 1040 return page 1, but the IRS requires it to be calculated on Schedule D. Otherwise I'd leave it off.

I need a loan officer who can over write or manually approve a loan looking at REAL numbers.
This $200 mortgage is only $29 higher than the $171 mobile home lot rent I'm paying, so in my mind, I only need to find another $29 a month to afford the mortgage.
I could beat the lending industry in court on the carry forward. It's a loss from 1999, but the government let me offset my income by using 3000 of it per year. It should not be stated that I lost 3000 on stocks in 2009 because I did not. I actually made money on stocks. But these lenders are counting the 3000 credit as a income loss and being 25% of my income it makes my debt to income ratio to high to meet their loan requirements.

They are looking at it is an income loss when it is actually a "direct" tax credit because it lowers my taxable income.