MORTGAGE QUESTION

[Getback]

I've been thinking hard on this. I've listened to the Dave Ramsey show and a similar situation came up. I can't recall the details but it has something to do with Fraud. I may be wrong but I think the thing is all lenders have to exposed.

You may want to call another mortgage company and ask them about it. Or call a realtor.

[MrDick]

All you really need to do is send the mortgage lender a letter stating the money is a gift.  Since it is less than 10k there are no taxes. 

After your brother closes, shake him down for the money.

[drdeathx]

This has been around forever. Some people lend the money to family and the buyer says it was a gift. When it is time to collect the loan and the family member sues and wins, a lean can be put on the home. The statement protects the buyer and the mortgage company. If there is a lean on the house and the house goes to forclosure....... The mortgage company has to pay the "loan" to get rid of the lean to resell house.

[Shuffler]

well, he did say he was going for an FHA? mortgage. as far as i know, he did deposit my check..in fact, he should've had to, as it was written to his name. as far as the mortgage company knows, i gave him that money.
 i think i'm going to put together a letter on company letterhead, and send that to him. that hopefully will cut the ice.

If he paid it from his account you need to do absolutly nothing.

[trax1]

The answer to this was posted on another forum where CAP1 posted this question, so I thought I'd share the answer with all of you as seeing it didn't make sense to me either until this guy, who owns a mortgage company explained it.

This is called "sourcing and seasoning funds" and it is absolutely required, no exceptions these days.   They may demand the past 2 months full bank account statements, documentation that you own the company, and the written / signed terms of the loan you have extended including the payment and term. They may also require a corporate resolution showing that you have corporate authority to extend the loan or documentation that you are the sole shareholder in the company.

A year ago none of this would have been required. But today.... its a disaster. Lenders underwriting, particularly in declining markets like Florida, are digging deep for any reason they can come up with to deny a loan. In fact, I would not be surprised at all if they use the fact that he needs to borrow funds in order to close as a reason for denial. Expect to have whatever documentation you submit to them highly scrutinized and they will probably come back asking for more and there is a good chance what they ask for will be impossible to provide. They will know this before they request it...  the impossibility will be exactly why they request what they do.

[RTHolmes]

its to stop you borrowing money, then using that as a deposit to borrow more, then use that as a deposit to borrow even more... This is the kind of regulation in the credit market people have been talking about to avoid another credit crisis.

[drdeathx]

For years, Mortgage companies look at past Bank Statements for many reasons. 1 is to see if there has been a large deposit seeing some people give or borrow for downpayments. if the Bank see's a large deposit out of the blue, they may question it.