Real Estate Blog - Keep a Copy of Dubya's Check, Ya'll

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Keep a Copy of Dubya's Check, Ya'll

mirror If you are applying for a USDA, VA or FHA loan, you might be asked to write a "Letter of Explanation." You might be asked to explain, for instance, why you had a 3 month gap between graduating from college two years ago and getting a job that August.

You might be asked to explain why you missed those payments on all of your credit cards for two months straight 4 years ago - and saying, "It wasn't me" won't work.

We had a client who wrote us a long letter explaining that he'd missed multiple payments over a 5 year period because he had a "Split Personality."

The letter was a MASTERPIECE - but unfortunately he had NO medical documentation to support the fact that "he had no clue why 'John' decided not to pay the bills that month and buy a new set of rims for the car." The loan was not approved.

You see, the underwriter, who puts their neck out to approve your loan - needs for you to document EVERYTHING in the file. Today we need a complete history of EVERYTHING - including where that extra $600 deposit came from this month. A copy of the newspaper report saying the tax rebate check is in the mail probably won't work - so we suggest ya'll keep a copy of those checks from Dubya'!

For more information about purchasing a home in Raleigh, Cary contact Steve and Eleanor Thorne, Meridian Residential, 919-459-1313.

Posted by Eleanor Thorne, Cary Mortgage Loans on 05/05/2008 06:34 PM

Comments (12)

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12 Comments on Keep a Copy of Dubya's Check, Ya'll

Yeah imagine that the bank wanting to make sure they don't duplicate their mistakes by lending money to someone irresponsible...:)

05/05/2008 07:21 PM

by Konnie McKee Northern Virginia Real Estate (Konnie McKee )

Eleanor ~ That's crazy that he would make up such a tall tale!

05/05/2008 09:06 PM

by Darleen McCullen, Broker-Raleigh, NC Real Estate (Keller Williams Realty - www.darleenmc.com)

I haven't thought about writing short, informative posts like this...great idea.

I actually had a client that cashed his tax return checks from state and federal. No direct deposit, no deposit...Cashed the checks and then kept the cash in a jar for a while! Luckily we found a solution, but your advice is great.

Love the split personality letter. What a nut!

05/05/2008 09:12 PM

by Hemet Home Loan Guy, Joey Aszterbaum (Patrion Mortgage)

People will try anything to circumvent the system! Should it be a surprise yes.... unfortunately now days it is not... it the Norm!

05/05/2008 09:14 PM

by Jennifer Ricco e-PRO,WCR,QSC, Retired LAPD (Keller Williams VIP Properties)

Yes, good advice. I also hear we might have to pay some of this check back if we are in a higher tax bracket next year. To quote Judy Tenuta - " It could happen!"

Luv the graphic - he is one handsome dude - and he thinks so too.

05/05/2008 10:50 PM

by Bonnie Westbrook Grand Rapids MI Real Estate Marketing (Five Star Real Estate Ada MI)

Eleanor,
People never cease to amaze me, they can really come up with some bizarre stories, can't they?

05/06/2008 07:00 AM

by Cynthia Tilghman, Realtor® Onslow County NC Home Specialist (Kingsbridge Realty, Inc)

So very true. What about the ones that get it direct deposited, though? We don't get a check.

05/06/2008 08:52 AM

by Don Draughn - Mortgage Professional (High Point NC Mortgages)

Years back as an underwriter, many of us on staff used these letters in competitve entertainment. If I had had the split personality letter it would have been game, set, match. Game over! Thats a winner!

05/06/2008 05:19 PM

by Scott Geary Pennsylvania Mortgage Broker (First Choice Equity Group Inc)

Would somebody PLEASE tell me the status of the FHA bill that allows brokers to get a bond in place of an audit. I can't figure out what's going on....

Reference to bond vs. audit: of what value would $15,750 cash be for even one single loan gone bad? Brokers I know put the cash in the bank for the audit then take it out. A bond system would provide far more protection for everybody. The audit requirement benefits only the mortgage bankers...

By the way, mortgage bankers benefit from ysp, they just don't call it that. It's a marketing gain. I have been on the other side (mortgage banking) and they make plenty of money on market gains. They just don't have to disclose it to borrowers.

05/06/2008 06:23 PM

by Landmark Mortgage

SCOTT! Hey you probably have a "stash" of these letters too! How about the one that says, "Alex is a very nice boy - he always cuts off the lights when he leaves the room and he's always on time!" That was on a VOE!!!

05/07/2008 08:40 AM

by Eleanor Thorne, Cary Mortgage Loans (Meridian Residential)

Eleanor - Wow, this is getting much more complicated than I thought! So we have to account for every deposit, even though this deposit will be on our W2's next year?

05/07/2008 04:35 PM

by Stanton Homes - Penny Hull: Raleigh Area Custom Home Builder (Stanton Homes Inc - Raleigh Custom Homes)

LOX's can be cumbersome but if we ask for it upfront it shouldnt be a headache 24hrs before closing. Good post

05/07/2008 06:14 PM

by Justin Williams - Loan Officer (Prosperity Mortgage)

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