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Another sad day for logic… Another real estate broker turned down for a home loan

Reblogger Aaron Vaughn 830-358-0455
Home Builder with Conifer Builders LLC

Wow! This is a lot to take in. I didn't know whether to laugh or cry when I read this, so I decided a re-blog was in order! After all, I think others would enjoy today's irony lesson, too.

Original content by Todd Clark - Retired 200311024

By Todd Clark (Broker/Sales Coach) 503-524-9494

I'm left scratching my headI was talking to a friend of mine who was trying to buy a home, but he said despite making five times what his wife does per year, he was turned down for a loan while his wife was granted a home loan with no problem. This is what has left me scratching my head and let me explain why.

Why was he turned down, despite having a 35% down payment and 742 credit score? According to the underwriter it is because he is commission based and there is no way to guarantee he would have a check every month.

So, what was my friend’s mortgage broker’s solution? Let’s try to get the loan in your wife’s name only. Well, the loan went right through and the underwriter issued the loan in the wife’s name for the full amount without question. All she wanted was her pay stubs from the past year and a copy of her taxes. (You know the ones that the husband is also on, since they file jointly?)

So, the house closes and I wasn’t going to question a thing if the underwriter wasn’t. So, why do I think this is such a sad day for logic on this loan? They wouldn’t give the husband the loan because he didn’t have a steady paycheck, he was commissioned based real estate broker. But, his wife got a regular check… FROM HIM! Yep, he is the one that wrote her the check, she was an employee of his. So, who cares if he couldn’t pay for the home, because clearly she would still be getting a check every month if he was bankrupt.

Do you understand the logic on this one? If so, please explain it to me?



Todd Clark - Broker / Sales Coach
All Brokers Real Estate
Phone: (503)524-9494
Fax: (503)622-8739

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©2010 Todd Clark - Originally posted at Another sad day for logic… Another real estate broker turned down for a home loan

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Aaron Vaughn

Conifer Builders LLC

Call or text @ 830-358-0455

Comments(3)

Bill Gillhespy
16 Sunview Blvd - Fort Myers Beach, FL
Fort Myers Beach Realtor, Fort Myers Beach Agent - Homes & Condos

Hi Aaron,  Not sure the logic is understandable by us commissioned agents !  Same general thing happens with rental condos.  The lenders don't like them even though they produce some pretty good income.

Apr 05, 2010 09:02 AM
Jim Frimmer
HomeSmart Realty West - San Diego, CA
Realtor & CDPE, Mission Valley specialist

That's not the first time I've heard about that type of situation. It seems that it is becoming normal as a way to beat the system. Maybe it's the new "no doc" loan.

Apr 05, 2010 03:42 PM
Todd Clark - Retired
eXp Realty LLC - Tigard, OR
Principle Broker Oregon

It is a shame that logic escaped us on this one, because when one goes bankrupt, so will the other.

Apr 06, 2010 09:40 AM