MortgagesUndressed

Michael T Mahoney has just posted a good article on this. CLICK HERE

False Income Documents and Verifications Underlie Indictment of Missouri Couple

I address a July 20 article that appeared on the mortgage fraud blog. Ida Mathis, 52, Kansas City, Missouri, and Larry D. Wills, 50, Kansas City, Missouri, were charged in a two-count indictment returned by a federal grand jury in Kansas City, Missouri for wire fraud and money laundering as part of a fraudulent mortgage transaction.

One of the federal indictment alleges that Mathis and Wills, aiding and abetting one another, defrauded New Century Mortgage

by submitting false documents

with a $472,500 loan application in connection with the property located at 100 W. Bannister Rd., Kansas City, Missouri. CLICK HERE FOR FULL ARTICLE

Please understand the crime you commit if you submit a false document.

It isn’t worth it.

The beginning of another top 10 list: An important one. Your contributions are welcome.

1- Pay off, don’t close, and don’t use your Capitol One card.

2- Do not have running balances on your cards. The more you do, the lower you go.

3- At least Keep your balance to limit at 20% or less. Above this, the higher you go, the lower you go.

4- Don’t close accounts.

5- Use accounts, pay the invoice, at least every 6 months.

6- Don’t co-sign: If you have, get off ASAP, even by closing the acount if necessary.

7- If shopping, like for a car, only give personal information when you are for sure buying.

8- Every 6 months, take one account and apply for an increase in credit capacity - then don’t use up that capacity.

9- Keep running credit balances on as few cards as possible, shoot for 3 max.

10-Work at it, if you are in too deep, in finding new income that can go directly to debt pay down. Pay off the cards with lowest balances first.

An oft too common loan approval casualty is when people buy a car just before or during the loan process.

This problem is usually with a first time home buyer. We mean to be a site for quick and valuable information for all buyers. Here is a basic. Hold the tempation, wait until closing is alllll over is the rule.

I will never forget the Doctor and his Jag. He was not a first time home buyer. The new jag payment was almost $800. Neither DO or LP would take his loan. (Be familiar with these terms. They are the initials for Fannie Mae and Freddie Mac approval software.) We had to go to a special program that charged a higher rate. His pride was injured, his temper hot, and the end result outa luck Doc. He didn’t consult with me he just did it.

Larry Cragun

I received this question by email: Does a bounced check affect your credit rating?

Answer: There is a high probability it will. Although merchants that you wrote the check to may not report the check to the bureau there are two reasons it may affect your credit.

1- If it the check was to pay a required monthly payment, the payment may show late or unpaid.

2- People often don’t get the check resolved in time to avoid collection. Now you have both a late and a collection. Real damage to your score occurs. The collection effects last longer and are greater than a late payment report.

Thanks for the question, I hope it helps you and others.

Larry Cragun

Click here for ridiculous poem on patience:

So the market has soared away from you. You hesitated or weren’t ready, and lost. You have been priced out of your dream of owning a home.

This can be a temporary problem. It is a temporary problem. Here are 10 solutions:

1- Understand you have the power to fix this. (See related article)
2- Understand it may take a year or more.

3- Know what you must do.

4- Believe it will happen.

5- Improve your credit score.

6- Lower your monthly payments.

7- Raise your Income.

8- Build an emergency fund. See related articles.
9- Take a quiet time each day to consider what you have.

10-Take a quiet time each day to consider where you are going.

These will make good topics for future discussion.

#1 Situation: Customer had bankrupcty discharged two years ago. This customer wants to purchase with a low down payment and wants rates competitive to Fannie Mae or Freddied Mac conventional rates.SMORT Reports the solution: FHA insured loans.

Important: You must have current good credit with no 30 day lates reported in the last 12 months.

Borrowers, there is no benefit in telling part truths or leaving out information. This is important when you are trying to figure out what you qualify for or what interest you can get.

A situation came to my attention last night that illustrates this. I don’t know how many times I have seen such a case.

The borrower wanted a pre-qualification letter to buy a home. He is on commission, has been for several years. He said he had good credit. He was seeking to purchase a home 0 down. Based on the above plus an approximate $90,000 annual income he qualified and got his pre-qual letter.

It was a waste of everyones time. The facts came through with tax returns and a credit report. His middle FICO score was 659 with a very recent 30 day late on his mortgage. Loans can be done with a 659, but not likely at the rate he first was quoted. Not 0 down.

Another problem was his income was $70,000 last year and only $29,000 the previous year. He now didn’t qualify based on income. The loan officer found a stated income program for him, but at a higher rate. This disturbed him.

All in all, everyone wasted their time.

Be forthcoming with all facts that might be pertinent. Don’t stretch the facts. They all come out.