[all]

[quote=SK in CV]

I’m not disputing that you have repeated this anectdote exactly as you heard it. But even if it wasn’t 2nd hand, and you were the borrower, I would still have questions about the details. There may have been other circumstances, maybe the borrower is self-employed, or has some other source of income that necessitated IRS verification. Often there are work-arounds that are left out of the story, intentionally or otherwise.[/quote]

Could be.
He’s salaried and about half of his income is commission, with below average credit score.

[all]

[quote=SK in CV]

I’m not disputing that you have repeated this anectdote exactly as you heard it. But even if it wasn’t 2nd hand, and you were the borrower, I would still have questions about the details. There may have been other circumstances, maybe the borrower is self-employed, or has some other source of income that necessitated IRS verification. Often there are work-arounds that are left out of the story, intentionally or otherwise.[/quote]

Could be.
He’s salaried and about half of his income is commission, with below average credit score.

[all]

[quote=SK in CV]

I’m not disputing that you have repeated this anectdote exactly as you heard it. But even if it wasn’t 2nd hand, and you were the borrower, I would still have questions about the details. There may have been other circumstances, maybe the borrower is self-employed, or has some other source of income that necessitated IRS verification. Often there are work-arounds that are left out of the story, intentionally or otherwise.[/quote]

Could be.
He’s salaried and about half of his income is commission, with below average credit score.

[all]

[quote=SK in CV]

I’m not disputing that you have repeated this anectdote exactly as you heard it. But even if it wasn’t 2nd hand, and you were the borrower, I would still have questions about the details. There may have been other circumstances, maybe the borrower is self-employed, or has some other source of income that necessitated IRS verification. Often there are work-arounds that are left out of the story, intentionally or otherwise.[/quote]

Could be.
He’s salaried and about half of his income is commission, with below average credit score.

[all]

[quote=SK in CV]

I’m not disputing that you have repeated this anectdote exactly as you heard it. But even if it wasn’t 2nd hand, and you were the borrower, I would still have questions about the details. There may have been other circumstances, maybe the borrower is self-employed, or has some other source of income that necessitated IRS verification. Often there are work-arounds that are left out of the story, intentionally or otherwise.[/quote]

Could be.
He’s salaried and about half of his income is commission, with below average credit score.

[all]

[quote=SK in CV][quote=captcha]

A guy I know is buying a house. He and his wife filed paper return back in March, but for some weird reason his processed tax return was not entered into the system until few days ago. The lender would not accept IRS-stamped copy of processed tax return. He had to wait for data monkey to input all the numbers, which finally happened this week. He was originally scheduled to close near the end of May.

It was/is an FHA loan.[/quote]

This is both in response to this comment and the original poster. Tax returns on extension aren’t due until 10/15/10. Unless underwriting has become even more strict than it was in the old days, it is usually acceptable to provide the documents which substantiate income (W-2’s, 1099′, etc.) for a tax return which isn’t yet complete. Along with authorization for the lender to receive a copy (or now just a facsimilie) of the return once it’s filed. In the old days, when extensions were returned by the IRS stamped “Approved”, that approved extension was sometimes requested. But the IRS no longer does that, extensions are automatic, the form doesn’t even require a signature. Sometimes they asked for a copy of that form, but it was pretty much meaningless.

The OP is essentially in that same position, although the return is complete, just not filed and processed as far as the IRS is concerned. If the money has been paid, its a no harm, no foul kinda thing with the IRS. And it should be with the lender too. A simple explanation should suffice.

Any lenders agents out there that can verify that underwriters now require a filed return, even though it may not be yet due to the IRS? Surely they wouldnt require that when processing a loan in say February or March, before even the original due date, without extension. I’m not sure why this would be any different.[/quote]

I’m not speculating, it is a concrete case.

The guy went to taxpayer advocate and that did not help. The paper return was processed, the check he sent along was deposited, IRS was willing to send stamped processed return, but the lender would not take it.

The broker said they never had that problem before.

The loan was approved and they are closing today.

[all]

[quote=SK in CV][quote=captcha]

A guy I know is buying a house. He and his wife filed paper return back in March, but for some weird reason his processed tax return was not entered into the system until few days ago. The lender would not accept IRS-stamped copy of processed tax return. He had to wait for data monkey to input all the numbers, which finally happened this week. He was originally scheduled to close near the end of May.

It was/is an FHA loan.[/quote]

This is both in response to this comment and the original poster. Tax returns on extension aren’t due until 10/15/10. Unless underwriting has become even more strict than it was in the old days, it is usually acceptable to provide the documents which substantiate income (W-2’s, 1099′, etc.) for a tax return which isn’t yet complete. Along with authorization for the lender to receive a copy (or now just a facsimilie) of the return once it’s filed. In the old days, when extensions were returned by the IRS stamped “Approved”, that approved extension was sometimes requested. But the IRS no longer does that, extensions are automatic, the form doesn’t even require a signature. Sometimes they asked for a copy of that form, but it was pretty much meaningless.

The OP is essentially in that same position, although the return is complete, just not filed and processed as far as the IRS is concerned. If the money has been paid, its a no harm, no foul kinda thing with the IRS. And it should be with the lender too. A simple explanation should suffice.

Any lenders agents out there that can verify that underwriters now require a filed return, even though it may not be yet due to the IRS? Surely they wouldnt require that when processing a loan in say February or March, before even the original due date, without extension. I’m not sure why this would be any different.[/quote]

I’m not speculating, it is a concrete case.

The guy went to taxpayer advocate and that did not help. The paper return was processed, the check he sent along was deposited, IRS was willing to send stamped processed return, but the lender would not take it.

The broker said they never had that problem before.

The loan was approved and they are closing today.

[all]

[quote=SK in CV][quote=captcha]

A guy I know is buying a house. He and his wife filed paper return back in March, but for some weird reason his processed tax return was not entered into the system until few days ago. The lender would not accept IRS-stamped copy of processed tax return. He had to wait for data monkey to input all the numbers, which finally happened this week. He was originally scheduled to close near the end of May.

It was/is an FHA loan.[/quote]

This is both in response to this comment and the original poster. Tax returns on extension aren’t due until 10/15/10. Unless underwriting has become even more strict than it was in the old days, it is usually acceptable to provide the documents which substantiate income (W-2’s, 1099′, etc.) for a tax return which isn’t yet complete. Along with authorization for the lender to receive a copy (or now just a facsimilie) of the return once it’s filed. In the old days, when extensions were returned by the IRS stamped “Approved”, that approved extension was sometimes requested. But the IRS no longer does that, extensions are automatic, the form doesn’t even require a signature. Sometimes they asked for a copy of that form, but it was pretty much meaningless.

The OP is essentially in that same position, although the return is complete, just not filed and processed as far as the IRS is concerned. If the money has been paid, its a no harm, no foul kinda thing with the IRS. And it should be with the lender too. A simple explanation should suffice.

Any lenders agents out there that can verify that underwriters now require a filed return, even though it may not be yet due to the IRS? Surely they wouldnt require that when processing a loan in say February or March, before even the original due date, without extension. I’m not sure why this would be any different.[/quote]

I’m not speculating, it is a concrete case.

The guy went to taxpayer advocate and that did not help. The paper return was processed, the check he sent along was deposited, IRS was willing to send stamped processed return, but the lender would not take it.

The broker said they never had that problem before.

The loan was approved and they are closing today.

[all]

[quote=SK in CV][quote=captcha]

A guy I know is buying a house. He and his wife filed paper return back in March, but for some weird reason his processed tax return was not entered into the system until few days ago. The lender would not accept IRS-stamped copy of processed tax return. He had to wait for data monkey to input all the numbers, which finally happened this week. He was originally scheduled to close near the end of May.

It was/is an FHA loan.[/quote]

This is both in response to this comment and the original poster. Tax returns on extension aren’t due until 10/15/10. Unless underwriting has become even more strict than it was in the old days, it is usually acceptable to provide the documents which substantiate income (W-2’s, 1099′, etc.) for a tax return which isn’t yet complete. Along with authorization for the lender to receive a copy (or now just a facsimilie) of the return once it’s filed. In the old days, when extensions were returned by the IRS stamped “Approved”, that approved extension was sometimes requested. But the IRS no longer does that, extensions are automatic, the form doesn’t even require a signature. Sometimes they asked for a copy of that form, but it was pretty much meaningless.

The OP is essentially in that same position, although the return is complete, just not filed and processed as far as the IRS is concerned. If the money has been paid, its a no harm, no foul kinda thing with the IRS. And it should be with the lender too. A simple explanation should suffice.

Any lenders agents out there that can verify that underwriters now require a filed return, even though it may not be yet due to the IRS? Surely they wouldnt require that when processing a loan in say February or March, before even the original due date, without extension. I’m not sure why this would be any different.[/quote]

I’m not speculating, it is a concrete case.

The guy went to taxpayer advocate and that did not help. The paper return was processed, the check he sent along was deposited, IRS was willing to send stamped processed return, but the lender would not take it.

The broker said they never had that problem before.

The loan was approved and they are closing today.

[all]

[quote=SK in CV][quote=captcha]

A guy I know is buying a house. He and his wife filed paper return back in March, but for some weird reason his processed tax return was not entered into the system until few days ago. The lender would not accept IRS-stamped copy of processed tax return. He had to wait for data monkey to input all the numbers, which finally happened this week. He was originally scheduled to close near the end of May.

It was/is an FHA loan.[/quote]

This is both in response to this comment and the original poster. Tax returns on extension aren’t due until 10/15/10. Unless underwriting has become even more strict than it was in the old days, it is usually acceptable to provide the documents which substantiate income (W-2’s, 1099′, etc.) for a tax return which isn’t yet complete. Along with authorization for the lender to receive a copy (or now just a facsimilie) of the return once it’s filed. In the old days, when extensions were returned by the IRS stamped “Approved”, that approved extension was sometimes requested. But the IRS no longer does that, extensions are automatic, the form doesn’t even require a signature. Sometimes they asked for a copy of that form, but it was pretty much meaningless.

The OP is essentially in that same position, although the return is complete, just not filed and processed as far as the IRS is concerned. If the money has been paid, its a no harm, no foul kinda thing with the IRS. And it should be with the lender too. A simple explanation should suffice.

Any lenders agents out there that can verify that underwriters now require a filed return, even though it may not be yet due to the IRS? Surely they wouldnt require that when processing a loan in say February or March, before even the original due date, without extension. I’m not sure why this would be any different.[/quote]

I’m not speculating, it is a concrete case.

The guy went to taxpayer advocate and that did not help. The paper return was processed, the check he sent along was deposited, IRS was willing to send stamped processed return, but the lender would not take it.

The broker said they never had that problem before.

The loan was approved and they are closing today.

[all]

[quote=SK in CV]Why don’t you just tell them the truth. Your return has just been or just about to be filed, and the IRS hasn’t processed it yet. I presume it is still standard practice for underwriters to request and receive authorization to receive copies of returns from the IRS (which it sounds like you’ve already provided). They’ll get the copy (or transcript) of the return after it’s processed.

Essentially the lender is in the exact same position as they are when a borrower has a valid extension to file their return.[/quote]

A guy I know is buying a house. He and his wife filed paper return back in March, but for some weird reason his processed tax return was not entered into the system until few days ago. The lender would not accept IRS-stamped copy of processed tax return. He had to wait for data monkey to input all the numbers, which finally happened this week. He was originally scheduled to close near the end of May.

It was/is an FHA loan.

[all]

[quote=SK in CV]Why don’t you just tell them the truth. Your return has just been or just about to be filed, and the IRS hasn’t processed it yet. I presume it is still standard practice for underwriters to request and receive authorization to receive copies of returns from the IRS (which it sounds like you’ve already provided). They’ll get the copy (or transcript) of the return after it’s processed.

Essentially the lender is in the exact same position as they are when a borrower has a valid extension to file their return.[/quote]

A guy I know is buying a house. He and his wife filed paper return back in March, but for some weird reason his processed tax return was not entered into the system until few days ago. The lender would not accept IRS-stamped copy of processed tax return. He had to wait for data monkey to input all the numbers, which finally happened this week. He was originally scheduled to close near the end of May.

It was/is an FHA loan.

[all]

[quote=SK in CV]Why don’t you just tell them the truth. Your return has just been or just about to be filed, and the IRS hasn’t processed it yet. I presume it is still standard practice for underwriters to request and receive authorization to receive copies of returns from the IRS (which it sounds like you’ve already provided). They’ll get the copy (or transcript) of the return after it’s processed.

Essentially the lender is in the exact same position as they are when a borrower has a valid extension to file their return.[/quote]

A guy I know is buying a house. He and his wife filed paper return back in March, but for some weird reason his processed tax return was not entered into the system until few days ago. The lender would not accept IRS-stamped copy of processed tax return. He had to wait for data monkey to input all the numbers, which finally happened this week. He was originally scheduled to close near the end of May.

It was/is an FHA loan.

[all]

[quote=SK in CV]Why don’t you just tell them the truth. Your return has just been or just about to be filed, and the IRS hasn’t processed it yet. I presume it is still standard practice for underwriters to request and receive authorization to receive copies of returns from the IRS (which it sounds like you’ve already provided). They’ll get the copy (or transcript) of the return after it’s processed.

Essentially the lender is in the exact same position as they are when a borrower has a valid extension to file their return.[/quote]

A guy I know is buying a house. He and his wife filed paper return back in March, but for some weird reason his processed tax return was not entered into the system until few days ago. The lender would not accept IRS-stamped copy of processed tax return. He had to wait for data monkey to input all the numbers, which finally happened this week. He was originally scheduled to close near the end of May.

It was/is an FHA loan.

[all]

[quote=SK in CV]Why don’t you just tell them the truth. Your return has just been or just about to be filed, and the IRS hasn’t processed it yet. I presume it is still standard practice for underwriters to request and receive authorization to receive copies of returns from the IRS (which it sounds like you’ve already provided). They’ll get the copy (or transcript) of the return after it’s processed.

Essentially the lender is in the exact same position as they are when a borrower has a valid extension to file their return.[/quote]

A guy I know is buying a house. He and his wife filed paper return back in March, but for some weird reason his processed tax return was not entered into the system until few days ago. The lender would not accept IRS-stamped copy of processed tax return. He had to wait for data monkey to input all the numbers, which finally happened this week. He was originally scheduled to close near the end of May.

It was/is an FHA loan.

[Author]

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