If it sounds too good to be true... It probably is!
As often as we keep hearing this sound advise, we keep on reflecting on how true this statement becomes. And, once again, we know it to be true as it relates to the OPTION ARMs. The number of OPTION ARMs written over the past several years is staggering... but the percentage that were written utilizing borrowers 'Stated Income' on the original application is compounding an already very bad situation.
If you're one of the many that falls into this category, and your home happens to be significantly underwater, then your options may be even more limited due to lenders potential inability to modify your mortgage due to borrowers' income not being able to stand up to the scrutiny of underwriters. Further, these borrowers may want to steer clear of going through the underwriting process again because they could be held legally liable (perjury) for items deemed to be deliberate inaccuracies on their original application.
To view the artice from CNNMoney.com, please click here.