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Answers (8)
- Clay Branch, "Georgia Loans"
- Contributions:7836
I am saying that I am renting the property.
So how do you plan on explaining why you are taking a mortgage interest deduction on your taxes if you are renting?
Who is going to fill out a VOR, you?
Not only will you not get to the closing table, you will never get through underwriting and you should be stopped by the LO before that!
Give it up before you actually do something you will regret.
So how do you plan on explaining why you are taking a mortgage interest deduction on your taxes if you are renting?
Who is going to fill out a VOR, you?
Not only will you not get to the closing table, you will never get through underwriting and you should be stopped by the LO before that!
Give it up before you actually do something you will regret.
- Norm D Plume, "America Needs Nixon!"
- Contributions:1670
You'll love the giant FBI fraud warning in your closing paperwork. It requires your signature.
I'd rethink the whole plan.
I'd rethink the whole plan.
- Chris Hacker, "thelendingcoach"
- Contributions:130
In this situation, I doubt you would even get to the closing table. If you are doing a short sale, the best thing to do is do what many others have had to do, either keep that house or short sale and rent for a few years.
That's better than the possible consequences, especially being a single mother.
That's better than the possible consequences, especially being a single mother.
- Carl Ashton, "Carl Ashton"
- Contributions:86
Wetdawgs is correct what you are doing is mortgage fraud.
I am pretty certian that you wont be able to borrow as FHA wont allow you to purchace FHA on a second home they will look for current properties you own in the processing and underwriting of your loan. Your current loan will show up on your credit report also.....
The market will turn, best to hold on and Refi when the values turn positive.
A Short sale will put you out of the maret for a home purchace for 2 years and 29 days.
Hope this helps:)
- wetdawgs
- Contributions:26804
You are proposing mortgage fraud. The banks are wise to buy and bail.
In order to qualify for a short sale, you have to have documented hardship. Documenting hardship because of committing fraud isn't likely to get you anywhere. Please talk with a lawyer before signing anything.
I'd be more scared of the consequences of fraud than an ARM.
In order to qualify for a short sale, you have to have documented hardship. Documenting hardship because of committing fraud isn't likely to get you anywhere. Please talk with a lawyer before signing anything.
I'd be more scared of the consequences of fraud than an ARM.
- ruthcrawford
- Contributions:2
I already own a home that is why I don't qualify for a new loan with a fixed rate. I am upside down by $150,000. I want to slide into a less expensive home and let my current home go by short sale. I am not telling the lender that of course, I am saying that I am renting the property. Apparently the banks are onto the situation and there are rules in place to stop buyers from doing this. I have been approved for a 5/1 Arm but the prospect of the rate increasing dramatically is scaring me to death... do I take the chance??
thanks, Ruth
thanks, Ruth
- Dan, "the_country_hick"
- Contributions:4694
It is a huge risk. If (when) interest rates go up you might no longer be able to afford the house payment. Just going up 2% increases the payment by 23.7%. If the interest rate resets to 9% (or higher) you could lose the house as the payment becomes unaffordable. With all of the excess money printing recently by the federal reserve inflation will hit hard I have no doubt. The only question is when and how long before inflation is tamed.
I would only go fixed rate. I would go back to your lender and ask how much you qualify for with a fixed rate mortgage. If the amount is below what you need to borrow for that house either buy something else or wait to buy.
Perhaps the links below can be of help.
Peter Schiff: Here's Why Home Prices Have To Decline At Least 20% And Probably More
"How to determine what you can safely afford to pay towards your monthly mortgage payment. Lenders may give a different number. "
"Does it make more sense to buy, or to rent? Here is the way to find out for sure."
"Why rent if you could buy for less money? Valid reasons inside."
I would only go fixed rate. I would go back to your lender and ask how much you qualify for with a fixed rate mortgage. If the amount is below what you need to borrow for that house either buy something else or wait to buy.
Perhaps the links below can be of help.
Peter Schiff: Here's Why Home Prices Have To Decline At Least 20% And Probably More
"How to determine what you can safely afford to pay towards your monthly mortgage payment. Lenders may give a different number. "
"Does it make more sense to buy, or to rent? Here is the way to find out for sure."
"Why rent if you could buy for less money? Valid reasons inside."
- John Montgomery, "JBMONTY"
- Contributions:76
Did your loan officer tell you that you can not approve for an FHA 30 year fixed for the same sales price? If so, you will probably want to look for a lesser of a sales price. Very strict guidelines are put in place with FHA loans to help you choose what is affordable for you and your income. If you only plan to be in the home for no longer than 5 years, then maybe the 5 yr ARM will be a good option for you. After the 5th year, the rate can start adjusting (usually by a maximum of 1% each year, but that is lender specific so find out the details from your loan officer)
Got approved for a FHA 5/1 Arm loan. Sounds like a huge risk, no? Frightened single mom here...
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