It depends upon how the mortgage broker is going to get him the money/loan.
*If the guy is already has a house, the next purchase has to show as a Non-Occupied status (can’t be in both at the same time).
*Already having payments for one house (which will be more expensive than he can afford when it resets), it will be difficult to get another loan when he is already cash flow limited (irregardless of his FICO). He may be thinking stated income? In addition, while there aren’t any Foreclosures in his current situation, there is a planned one in his future (his current lender might like to know, and wonder how they feel). I would watch out for 18 USC Ch 47 violations here. Material misrepresentation of income related to obtaining, misrepresenting facts current or soon to be in evidence that are detrimental to obtaining loan
I would like to see some of the CDO holders start pursuing these… otherwise we just end up penalizing the honest and rewarding the dishonest.
