Sunday, December 14 2008 - 05:14 PM
Do Not Foreclose, Review Your Docs
Pull out your most recent Loan documents and your Income tax return the year before your Loan was made.

Obtain the most important documents:

Uniform Residential Loan Application Form (1003)

Go over this very important document.
Look for discrepancies in your income, assests, employment, etc. and log them all down. Most often we find incomes to be inflated. Whatever is listed on your form- multiply that by 12 and compare with your tax return (1040). Do the numbers match? If they don’t, That is called false stated income loan fraud. See Freddie Mac’s newsletter here:

http://www.freddiemac.com/singlefamily/news/newsletter/2007/07/fraud.html

No Income No Asset Loans or other Stated Income Programs: Underwriters excercise a “reasonableness test” view WAMU’s subprime underwriting guidelines:

https://www.wamumsc.com/sellerguide/reports/pdf/Seller_400.pdf

Your capacity to repay the loan is mandatory.

What is mortgage fraud:

http://www.fbi.gov/filelink.html?file=/pressrel/pressrel07/mortgagefraudwarning.pdf

Uniform Underwriting Transmittal Summary
(1008)

Make note of your qualifying ratios. Namely: DTI or debt to income ratio:
http://en.wikipedia.org/wiki/Debt-to-income_ratio
and LTV or loan to value ratio:
http://en.wikipedia.org/wiki/Loan_to_value

make note of what the % are. questions re this pls. call: 661-860-4978

If you have a monthly mortgage payment that takes more than 38-41% of your gross monthly income then you have an obligation that is not suitable and sustainable.

It is bad enough to lose a home, worse to go to jail for fraud.

So, the question whether you will lose your home or not can only be answered by you.

Who lied on the Application?

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