I am doing a short sale where the homeowner doesn’t file taxes because all of her earnings are through a trust. I’m not exactly how that works. But she said that she wouldn’t be able to provide W-2 forms. Also, the homeowner didn’t try to list the house because she owes about 30K more than what the other houses are selling for. Is there any way to work around this since the homeowner doesn’t have these documents?
Just put it in your offer letter that the HO doesnt file taxes cuz its earnings thru a trust. ALso if they dont file federal taxes, no bigge. I just point out to them the HO doestn file taxes. In my case, my HO is a disabled vet on disability and there doesnt need to file taxes. I’ve heard other guru’s state that in your letter to the bank, point out the HO would rather go thru foreclsoure than deal with realtors. I havent put this to the test. Since I am working on my first deal right now.
good luck
What I wonder about is how these people got a loan in the first place without providing those documents. I have yet to get a ‘stated’ loan, this is what I assume these homeowner had, so I do not know what documentation was required. Others?
I too am working a man who says he can not provide w-2’s. I am just going to tell the lender that he does not file. I too think it’s not that big of a deal. The lender knows that they have not been paid in the past 6 months and will not be.
Remember, there are a lot of no doc loans out there. I should know, I got one 3 years ago becasue my job laid me off. BUt I had extra money squirreld away to pay the closing. But my interest rate was higher until I refinanced a year later.
steve
