Saturday, November 28, 2009

OPTION ARM Borrowers (That Stated Their Income On Their Original Application) May Have Difficulties Obtaining Loan Modification

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, please click here.

1 comment:

  1. Your website is quite interesting. It helps me to put things into proper perspective.

    I do have one question:

    I got my loan on a stated option arm, and my rate is due to adjust higher in january; and I already owe more on my loan than my house is worth. If you are saying that my lender will most likely not approve a modification for me, will I have a similar problem if I need them to approve my short sale?