ABSDOLUTELY STUPID New Rules

[TORRERO]

I just bought a house and my agent said that all mortgage companies will ask where money originated from before going through with sale... but you get around this by depositing the money 3 or more months in advance of the purchase... they want to know where money came from of recent origin because they don't want you taking Loans out to cover a home down payment, one company wanted where it came from if more than $500 my Credit Union said they didn't care if it was less than my monthly income from my job.. meaning $1200 ...
but they won't allow you to clear out your 401K to buy a home.. so if you know in advance then drop the money in 2 or 3 months before and it shouldn't be a problem....

 

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[Honest Samuel]

Does not make sense to me. Good luck to you.

 

[landman]

Simply take the $2800 out of whatever account you have it in.
Give it to a relative. Have the relative "gift" it back to you.
Get the gift letter from your lender and follow their protocol for a "gift"
including all documentation in the paper trail. That should do it.

 

[Honest Samuel]

You need to hope that the relative will give you the gift.

 

[DirtDiggerDaveinMD]

Simply take the $2800 out of whatever account you have it in.
Give it to a relative. Have the relative "gift" it back to you.
Get the gift letter from your lender and follow their protocol for a "gift"
including all documentation in the paper trail. That should do it.

Sounds like a scenario designed to deceive the lender. Mortgage fraud is an offense that is taken very serious.

 

[ScubaDetector]

As stated. The house is almost mine and the nightmare over. I close Monday at 9am.

Nothing illegal they accepted my deposit and cleared it. No idea why or how but I am not going to argue!

 

[Tom_in_CA]

.... they accepted my deposit and cleared it. No idea why or how...

Well gee Scuba, with someone as dishonest as you, can you hardly blame them for putting you through this ??

 

[DirtDiggerDaveinMD]

As stated. The house is almost mine and the nightmare over. I close Monday at 9am.

Nothing illegal they accepted my deposit and cleared it. No idea why or how but I am not going to argue!

Glad to hear things worked out. After our closing it was was like someone lifted a bolder off of our shoulders, and ours was really easy.

 

[Honest Samuel]

I am glad that it is all over and you have a new house. Good luck and good hunting.

 

[against the wind]

Wow Scuba,, this is crazy.
I'm looking to buy a house in Pennsylvania.
I'm pre-approved through a Mortgage Company.
My main bank is Chase. I'm not going through them.
I have direct deposit for my Pension and Social Security. I opened an account with TD Bank so I could deposit hobby related finds in their coin machine. I am going to be cashing in some gold soon. Of course that will generate a check for about a thousand dollars. I wonder if there is a problem with having a bank account that only you and the bank knows about?

 

[ScubaDetector]

Wow Scuba,, this is crazy.
I'm looking to buy a house in Pennsylvania.
I'm pre-approved through a Mortgage Company.
My main bank is Chase. I'm not going through them.
I have direct deposit for my Pension and Social Security. I opened an account with TD Bank so I could deposit hobby related finds in their coin machine. I am going to be cashing in some gold soon.Friendly Metal Detecting Forums - Powered by vBulletin Of course that will generate a check for about a thousand dollars. I wonder if there is a problem with having a bank account that only you and the bank knows about?

NO idea, BUT if I were you I would find someone to cash the check for you and use it as cash for other purchases. Any deposit over 500.00 gets questioned I was told. If they run your credit won't they find that bank? This was a major headache and they made me sweat it out for almost a week. If you make the deposit over 60 days before you get the house you will be good. It really was a nightmare.

 

[Honest Samuel]

Best of luck in moving and buying another house.

 

[Kansas_Jayhawk]

Wow Scuba,, this is crazy.
I'm looking to buy a house in Pennsylvania.
I'm pre-approved through a Mortgage Company.
My main bank is Chase. I'm not going through them.
I have direct deposit for my Pension and Social Security. I opened an account with TD Bank so I could deposit hobby related finds in their coin machine. I am going to be cashing in some gold soon. Of course that will generate a check for about a thousand dollars. I wonder if there is a problem with having a bank account that only you and the bank knows about?

When you cash in the gold get a receipt and attach to bank statement. Make sure the receipt clearly shows who gave you the money and what you received the money for. Fairly simple.

 

[ScubaDetector]

When you cash in the gold get a receipt and attach to bank statement. Make sure the receipt clearly shows who gave you the money and what you received the money for. Fairly simple.

WRONG. I did that. Gave them the receipt from a trusted refinery. Showed I refined gold. THAT is when they needed me to prove the gold was mine to begin with.

 

[Kansas_Jayhawk]

WRONG. I did that. Gave them the receipt from a trusted refinery. Showed I refined gold. THAT is when they needed me to prove the gold was mine to begin with.

I usually don't base much off one or two events. Why they didn't take it could only be determined by discussion. That document should have been sufficient


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[Old Bookaroo]

SusanMN:

You did an excellent job of explaining the rules - and what's behind them. A number of people here conflated the deposit to purchase a home (the process of obtaining the mortgage) with the requirement that banks report all suspicious financial activity - including cash deposits of $10,000 and more, and "structured" deposits (among others).

The statement here that income tax is only due when the finds have been liquidated is completely wrong. And, no, one can't deduct hobby expenses from hobby income for Federal income tax purposes. That's the difference between a "hobby" and a "business."

I read many posts here on TN that are accurate, correct, and useful. Many of those in this thread aren't any of those.

Good luck to all,

The Old Bookaroo, CM

 

[Tom_in_CA]

good post bookaroo. You're right: While it's easy for us to moan and groan at bank bureaucracy (in the cases of legitimate gains like scuba had), yet ...... When you put yourselves in the bank's shoes, they will be the FIRST to get lamblasted for granting loans to someone who didn't have the financial means to pay it back . Anyone here remember the housing financing bubble we had a few years ago ? Thus: Who can blame the banks for setting out criteria now ? There *could indeed* be a crook who "launders" money (loans from relatives) by saying "I found it".

Now we all know that scuba is laundering money and actually stole it. But... just sayin' .... for the rest of us ....

 

[Old Bookaroo]

Tom in CA:

With all due respect - saying banks make the rules is similar to suggesting NFL players write the rule book. Banks just play the game. Left to their own devices, they will always push the envelope when they can.

It looks like the OP was on his own. Had he decided to go with an experienced, successful mortgage broker, that individual would have walked him through the steps at the start and explained how the game is played.

The art in single-family residential lending is to make every loan look like every other loan. Then they can easily be packaged and sold - again and again. The OP had to explain where the money for the deposit/downpayment came from - that's almost always going to be the case. A website isn't going to listen to the story. Funds are either seasoned or explained. That's the only two flavors.

I hope the loan closed and everybody's happy...

Good luck to all,

The Old Bookaroo, CM

 

[Chadeaux]

While it's easy for us to moan and groan at bank bureaucracy

From experience ... everyone wants their palm greased, especially folks who handle other peoples' money. The law makes it illegal to do that, and that really ticks off some bankers who miss "the good old days" when graft was simple.

So, now you have the taxman AND the banker against you because both are jealous that you got something they couldn't or didn't ...

 

[Tom_in_CA]

....- saying banks make the rules is similar to suggesting NFL players write the rule book. Banks just play the game......

bookaroo, yes, the bank is merely responding to top-down-pressure. And that "Pressure" filters/dribbles down to the lowest rungs on the ladder. Can you blame them ? Heaven-help-them when ....... later on .... someone says "I can't pay back, and ... by the way ... I should never have been approved in the first place". Then: All the busy-bodies come out of the woodwork and say "why wasn't someone asking pointed questions and checking facts ??"