Author Topic: Sign IRS 4506 and lose mortgage? Window of 3....  (Read 454 times)

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Offline Squashpro19

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Sign IRS 4506 and lose mortgage? Window of 3....
« on: August 14, 2022, 09:03:16 AM »
Signing or no Signing IRS 4506? lose mortgage?

I would be grateful to anybody that can help me.🙏trying to invest in this house for my kids education and my future..I am buying a condo in the great park btw.

Situation:
 I am widowed (kids father died in a drink driving accident), and am trying to buy a new construction home in a neighborhood so my kids can have the last chance to go to a good high school. I nabbed the home when it was still dirt,  locked in a cheaper price. Otherwise I don't know where my kids and I would love this fall with rising rents and house prices 😭

ON Last leg of the mortgage for a new construction that will be done in TEn days , they want me to sign the IRS 4506 tax form authorizating the IRS to release my transcript to the mortgage provider to prove I'm not lying bout my income.

However, some glitches happened along the way.

Can I get away with not signing it (push it to the last min and then at the very end sign it so that I'll get the loan bc the house is due to close in 10 days and then by the time the IRS processes it, it is after closing?) Bc maybe t's just a checkbox item and just bc I sign the 4506 giving the mortgage provider permission to ask the IRS for my tax returns 2020+2021, it doesn't mean that they will necessarily submit it to the IRS?

Here's why, it doesn't come With mal-intentions. At all.

They wanted two years of taxes forms, I could use 2020 and 2019 or just 2020 and 2021.


In 2019, I filed as married. My ex (ten years after kids dad  got killed by a drunk driver)  and I were married in a 3rd world foreign country, turns out the marriage wasn't legal. We had some issues and broke up (he was absuive) There's no divorce decree bc we were never married legally (whoops, I know)

In 2020 filed as  single.

2021, got an extension.

Since I don't have a divorce decree and I wasn't legally married or divorced, but my taxes say so, I was scared to provide 2019 and 2020.


So I gave 2020 and what I THOUGHT was the done taxes for 2021. Turns out my tax persons, her secretary just gave me a copy that they had not yet submitted bc they were waiting on one more insignificant 1099 form.


So if I sign the 4506, and mortgage lady submits to IRS, it won't match up! Bc no taxes submitted for 2021 just yet but if I give 2019 and 2020, isn't it standard procedure to ask for proof of divorce decree? Which I don't have....



It's not an issue of income in the tax forms at all.
Also, please don't hit me with mean comments, by misfiling, I actually paid MORE taxes. I don't plan to amend since I overpaid.....


What should I do now, submit 2019 and then if they ask for a.divorce decree I don't have one?? And sign the IRS 4506 for 2019 and 2020 Or sign IRS 4506 for 2020 and 2021 and pray they don't actually ask the IRS or ask after closing since there is only 10 days left?


My mortgage provider is a direct lender btw.


Thanks so much. I would be so grateful on behalf of my kids 🙏

.

Offline Soylent Green Is People

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Re: Sign IRS 4506 and lose mortgage? Window of 3....
« Reply #1 on: September 07, 2022, 03:10:34 PM »
First, ask your mortgage consultant to confirm in writing if they are asking for the IRS confirmation of your 1040's, or your W-2's. Then, which SPECIFIC years are they asking for?

If it's 2019-2020 1040's, you have to give them the 1040's and the 4506-C. They should, at this time, have already asked about your 2021 1040 extension. Since it appears they have not, then this may be the case where only your W-2's are being confirmed by the IRS.

If ONLY the W-2's are being confirmed with the 4506-C  then first ask if you can get the transcript yourself. That way you can control the narrative and speed in which it's placed in the Underwriters hand for review. Some lenders do allow this. You get these from the IRS and often must be faxed to the lender directly. Your mortgage consultant can give you direction on how to accomplish this. W-2 verification with the 4506-C is simple, common, and very low risk.

Only Non-QM lending solutions have the potential to exempt you from the 4506-C, but it does not sound as if you are using Non-QM products. If this is a Conforming or a Non-Agency product, the 4506-C is the immovable object to your irresistible force. Get it done sooner rather than later. You do risk a Per-Diem charge from the builder if you close late.

Let's assume there is a "worst case scenario" and the UW wants 2018-2021 returns confirmed by the IRS and that you have to compose a Letter of Explanation (LOE) . Consider this before writing the LOE: You want to write this LOE as if you were explaining thermodynamics to a 3rd grader. Use small sentences, 1-2 syllable words, as if you were writing all of this down in crayon. Underwriters aren't idiots, but they also bore easily like children and when you over disclose you can really muck things up. The KISS principal must be adhered to as if Moses himself made these the 11th to 14th Commandments. Your story makes clear, reasonable sense - only if you make it clear and reasonable. 

From what I see in your original post you'll be fine here.  Best of luck and post once you've passed over this hurdle.

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