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  1. 1) No, the last update was BEFORE the settlement agreement was made and paid. 2) Yes, the settlement is in writing, including a hard copy letter from the bank that the account was settled on XX date for XX amount, with no further obligation to make payment. The letter states they are going to notify the CRA's that the account is settled. 3) See #2, that it was agreed to be reported as settled.
  2. I am working with a friend to get his credit in better shape. There is an account that was settled for less than the balance. The bank sent a letter confirming this. The three CRA's still show it as charged off with a balance. What's the best way to handle this? i.e. is it possible to get it deleted, or should the bank be contacted first or the CRA be contacted first?
  3. They don't care how you pay as long as they get at least the total due on or before the due date.
  4. The $160 can impact you in the following ways: 1) Credit Score - The mortgage company pulls for scores once at the beginning of the application. Before close they pull your credit report again to make sure nothing new has shown up or drastically changed. they do _NOT_ look at your scores at this point. So you don't have to worry about it sinking your score. 2) Debt to Income - Even if the card posts, the minimum payment is probably about $25/mo. If you are cutting it that close on your DTI already you may wish to consider a smaller house, or putting more money down in the first place. That is really the main factor. Will $25/mo impact your DTI. If the $25/mo increase on DTI is a problem. When does the credit card statement cut? Do you have enough time to let the charge(s) post and PIF the card before it posts? Finally, if you are truly worried about it. Just go mail them a check.
  5. I've seen people make a lot of money and still be braindead when it comes to business deals. Some folks do fall backwards into making a lot of money. This story, however, I do not believe. It's a troll, and a waste of time. Threads like this should be locked.
  6. Check with local small banks. Call a real estate agent listing a house in that price range. I'm sure there is some small local bank that will be interested in portfolio loans of that size. Depending on the bank you may also be able to do it as a commercial loan. You could also finance it for much more than you owe on it (say 90% of the current appraisal value) and then just pay back that money. You would need to calculate out the closing costs, etc. to see if it is worth it to do that.
  7. I can't answer your specific question, however I can give you a data point. I have been self employed for several years. The company was originally a C-Corpraiton (1120) and then the company elected to file S-Corp (1120S). It was the same business / same EIN. The bank had no problems with using the 1120 + 1120S. I think the rules have changed (or are changing). When we did our mortgage there were some serious advantages to being an 1120 as far as income calculation. For example on the 1120 they allow you to add back your Section 179 deductions. So if you have a business that purchases a million dollars in equipment, that gets added back to your personal income. On the 1120S they take what is on your 1040/K1 plus Page 1 deductions for the 1120S but *NOT* Section 179 deductions. If I recall they are going to / maybe already have "fixed" this hole.
  8. I am curious to see what they will do. I'm sure if you don't need that income to be approved for the loan it will be fine. Beyond that I am going to assume they will want tax returns filed. Otherwise, anyone could just start printing W2's, saying they are legit and then never sending taxes in to the IRS.
  9. Nothing is done until the loan is funded. There are files that have been cleared to close and the money never shows up.
  10. Depends if you counted it as income or not. If you considered this income then they will need to trace the income through the business taxes and bank statements too. Thu will probably want an IRS transcript for the business taxes. It takes about 4 weeks for your taxes to be completed before you can get a transcript.
  11. Investors also don't want to make a bunch of bad loans and have to use their FHA loan insurance if they don't have to. There are banks out there that do not use any overlays beyond the FHA guidelines. You may be able to find a bank that does this. A lot of banks do not keep (or fund) their own loans anyway, so they have guidelines that they must follow to get the loan funded from the investors.
  12. By default requesting tax transcripts on a 4056-t will only show the tax filing transcripts for the year(s) specified on the forms for the entity requesting the transcripts (I.e. a person would request 1040 Transcripts, an S-Corp would request 1120S transcripts, a C-Corp would request 1120 transcripts). These transcripts will show a summary of the form filed for that year, which would derive the amount owed or refunded. They will not show previous years balances, etc. That would be shown on a Tax Account Summary which they generally do not request for mortgage files.
  13. If the business failed and they were PG'ed debts that you agreed to pay then they are now personal debts and they should be reported. If they aren't on your credit report the bank will not ask about them. The main problem with that would be that if you defaulted on the mortgage then this would be considered loan fraud.
  14. They will want the last 2 years tax returns (and a 4056-t). Depending on the bank they may want 3 or more years since it is a Jumbo product. If he closes by the end of March (A little late for that?). he will have to provide the previous years tax returns (4056-t as well). They won't ask for "Audited" P&L, but they will want a P&L. They will want 2+ months of business and personal bank statements. Score so high / no debt does not mean anything.
  15. Anyone know any details about this product? Score requirements, etc

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