how to cancel contract

[fishone4]

here's the problem. We found a home and fell in love with it. We contacted a mortgage broker and he told us our options for a mortgage. He sent us papers for a stated income mortgage. My husband signed all the papers and sent them back. He was only on the papers due to my credit scores. I was at work when it sent them back . Anyway when I got home he told me about the papers and such. the contract stated that his income was $6000 a month. This is not the case. Both of our combined incomes are about 6500 a month. How can this mortgage broker use almost both of our incomes yet only have myhusband on the loan. isn't this mortgage fraud and how do we cancel this. Our closing is March 19 and we need to find a mortgage company that is stating the right income amounts etc. Please help. Can we just call up the broker and tell him we want to cancel going through him.

[OregonLO]

where are you located?

However, He is NOT breaking the law. It is called a Stated Income loan for a reason. We STATE how much you make. He is adding in your income to your husbands for the purpose of the loan (due to your credit scores)

If anything he is doing you a favor by stating less. If you OVERSTATE someone's income they could deny the loan.


Example: If someone works at a gas station and you are stating they making $5,000 a month then they will most likely deny the loan due to that being unreasonable for the employee.

He is stating what he needs to state to make you qualify for the loan, but no he is not doing anything wrong. He is helping you get into the home. If that loan wasn't around then you wouldn't be buying the house period. If you'd like to talk to me a little more about that then feel free to email me or call me.

Rick@loansbyrickgrand.com

[ckoback]

I agree they did nothing wrong. but in todays market with the subprime maket the way it is you need to be carefull with stated loans. its all you need is to have a loan called due on you.

[Matthew-HTDI]

This is a far cry from being "fraud", this would pale in comparison to what I've seen in my time! Like Oregon said, you should be glad he is understating the amount you make combined as it would appear he is looking out for your best interests.

[Massguru]

Good answers! However, technically it IS fraud because there is only one applicant on the loan and they are stating HIS income, not the household income, not combined with someone else's etc etc. But I do agree w/Oregon. He is helping you out...you credit is the reason you wouldn't be able to get into a home and because this LO is sticking out their neck you will be able to get the home you want. You can go anywhere else to find someone to put your income as less and guess what, YOU WILL BE TURNED DOWN. This is a choice on your part. Do you want he house KNOWING there are 2 incomes making the payment or do you want to PASS on the house because your credit is bad? I have to say also, that my credit isn't so hot either (which is not uncommon in the loan industry) but I know how to work the system, my wife has great credit and we did a stated loan w/combined income, why? Because we have 2 incomes and her income alone wouldn't even get us a studio. But, yes it is fraud...will you get caught...not likely, can the l.o. get caught? Not likely. You get a house, he gets paid. Now just stay married and keep your job and you will be ok.

[Matthew-HTDI]

Good answers! However, technically it IS fraud because there is only one applicant on the loan and they are stating HIS income, not the household income, not combined with someone else's etc etc. But I do agree w/Oregon. He is helping you out...you credit is the reason you wouldn't be able to get into a home and because this LO is sticking out their neck you will be able to get the home you want. You can go anywhere else to find someone to put your income as less and guess what, YOU WILL BE TURNED DOWN. This is a choice on your part. Do you want he house KNOWING there are 2 incomes making the payment or do you want to PASS on the house because your credit is bad? I have to say also, that my credit isn't so hot either (which is not uncommon in the loan industry) but I know how to work the system, my wife has great credit and we did a stated loan w/combined income, why? Because we have 2 incomes and her income alone wouldn't even get us a studio. But, yes it is fraud...will you get caught...not likely, can the l.o. get caught? Not likely. You get a house, he gets paid. Now just stay married and keep your job and you will be ok.

Let me clarify, I was assuming you both were on the loan, and he was stating lower to avoid any pitfalls at the coe. Sorry! But I have to agree with my forum friend Mass.

[j.wehman]

omg, it is not fraud,
it is legal to state the income
and have it be higher than what you usually make
the main reason for a stated income loan is to lie that you make more income than shown. morons

[Matthew-HTDI]

I think we know that j.weeman, but the question was more about stating his wife's income as his... Here's some good info...

If a W-2 wage earner is qualifying under a stated program because he or she has additional income that is not documented, Form 65 should specifically state which portions of the borrower's income are earned from which source.
If the borrower does not qualify based upon traditional income documentation (W-2's, pay stubs, etc.), the originator may not then place the borrower into a stated income loan program.
The income of a non-qualifying spouse or partner should never be added to the borrower's income for qualifying purposes under a stated income program.

[Loangenius]

Matt is right. It's people like j.wehman that give us a bad name. I would never openly say that the main reason for stated income is to lie. The politically correct answer is to help borrowers that have income that is not easily documented (self employed people that don't pay enough in taxes) to get homes. They don't to have both. Meaning self employed people don't get a tax break AND the low rates available to people that prove their income. If you are lying to get someone qualified because their income is not enough, it's because you care more about a commission than telling them they can't afford it. Those are the type of mortgage people that cause the rest of us problems.

[rydel]

When it comes to cases like this, I always recommend couples to know the first thing about documents. It is really difficult to digest everything when you are in love in a house and want to relocate asap...

[Nasika]

This is a very good question. You need to know how to stop your contract before signing it.