Long story short, we refinanced our house in November and we are now realizing that we just can't afford our house. Looking over our loan documentation, I realized that the broker listed my income way above what it actually is, so they basically approved us for a loan we can't afford. Is there anything we can do other than sell our house...which will be very difficult to get what we owe on it with the market the way it is.
2007-08-15 12:39:21 · 4 answers · asked by Freakin Out 2 in Business & Finance ➔ Renting & Real Estate
The type of loan your mortgage company did is stated income. Based on what your income really was you didn't qualify so they stated your income so you would. This type of financing is going away, a lot of lenders are no longer doing stated income loans due to the fact similar to yours. Unfortunately when you signed your loan application you were agreeing to what your income was. Hopefully you have some equity in your home if you do have to sell. You may want to call your mortgage company and see if they can help maybe a different type of loan that you are able to afford. Good luck.
2007-08-15 12:57:03 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Who could call they lender, and explain your situation but you need to know that most lenders scan all of the closing documents signed by the borrower at closing. This is done to assist in the foreclosure procedure should it become necessary. As part of your closing a final, typed mortgage loan application (AKA 1003) is there in which you signed right on the page that contained the income amount used to qualify the loan. Another document is a certification that your required to sign that "this information is true and correct
to the best of your knowledge". The lender will ask "why did you sign if the information was incorrect"? I am sorry to say but not reading what you sign cannot be used as a defense when the judge is review the case. I would consult an attorney to properly file a suit if it is even possible.
2007-08-15 20:02:40 · answer #2 · answered by Etta P 4 · 0⤊ 0⤋
down at the bottom, just above the signature block, doesn't it say somethnig like "I/we certify that the above information is true and correct?"
That's the part where you say you'd read it all and KNEW what you were signing and said it was correct.
you need to sell and run from this as fast as possible.
from the loan buyer's viewpoint it looks like mortgage fraud and with late payments jumping up everywhere, they likely aren't in a forgiving mood. Especially if it looks like they'll lose money on this.
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Maybe you can sue the broker. You might even win if you can prove that you gave him the correct data and he put something else down.
But that case won't be settled before you'll be foreclosed and evicted, so you need to act first on that and soonest.
ouch
2007-08-15 19:57:49 · answer #3 · answered by Spock (rhp) 7 · 0⤊ 0⤋
Ask your bank/savings and Loan Co. about "Sailors Law" applied it and you wont have to loose your house, at least for 4 yrs, ask them to explain that law and use it. If they wont explain to you, go to another savings and ask them to explain to you. DO IT
2007-08-15 20:16:11 · answer #4 · answered by Anonymous · 0⤊ 0⤋