Sick of stupid requests from stupid lenders - RANT

[BulldogTom]

So my boss is doing a refi.  He is the sole shareholder of the Corporation.  The Corp is a C corp.  The lender wants copies of the K-1's issued to the owner!!!!!!!!!!!   WTH!!!!!!!!!!!!!!!

 

Don't these stupid frikkin' lenders have a clue about when k-1's are issued?  They have the damn tax return.  Don't they know the difference between a 1120 and a 1120S.

 

Waste of frikkin' time to work with these idiots.

 

Rant over.

 

Tom

Hollister, CA

[Tax Prep by Deb]

I totally agree! Some of what they want is stupid. For example they want you to grant them access to your tax transcript with IRS, then they want a copy of your tax return? Then they want the tax preparer to certify your self-employed? And on and on and on!!!!!!

[BulldogTom]

This just keeps getting better.  I send the guy an email telling him that we don't issue K-1's because we are a C corp.  He says the underwriter needs it from the CPA on their letterhead???????

 

Why don't they just google the K-1 requirements?  I bet our CPA firm is scratching their heads when I sent up the request from the broker.

 

STUPID STUPID STUPID.

 

Tom

Hollister, CA

[SaraEA]

My boss is also applying for a mortgage.  The underwriter saw on his bank statement checks to the US Treasury and our state tax dept written on 1/15, 4/15, and 9/l5 and demanded to know what they were for.  Groceries I guess.

 

The courts are just as bad.  Last year we had a couple who had divorced in August 2013 and came in with a divorce decree stating they had to file jointly.

[Jack from Ohio]

I tell those clients to find a real bank.

[kcjenkins]

The courts are just as bad.  Last year we had a couple who had divorced in August 2013 and came in with a divorce decree stating they had to file jointly.

I KEPT A COPY IN MY FILE of a divorce decree that stated "Mr C______ may claim the dependency exemption for Mrs C for 1/2 the year, and she may claim herself for the other 1/2."      

[Jack from Ohio]

I KEPT A COPY IN MY FILE of a divorce decree that stated "Mr C______ may claim the dependency exemption for Mrs C for 1/2 the year, and she may claim herself for the other 1/2."      

Doesn't apply if the divorce was final after 2008.  The IRS will not use the divorce decree to decide.  Rules about dependency make the decision.  Form 8832 must be use to allow deduction by non-custodial parent.

[jklcpa]

I KEPT A COPY IN MY FILE of a divorce decree that stated "Mr C______ may claim the dependency exemption for Mrs C for 1/2 the year, and she may claim herself for the other 1/2."      

 

 

Doesn't apply if the divorce was final after 2008.  The IRS will not use the divorce decree to decide.  Rules about dependency make the decision.  Form 8832 must be use to allow deduction by non-custodial parent.

 

 

There was never a time when a WIFE was claimed by the husband for 1/2 of the year and she claimed herself for the second 1/2.  KC and Sara didn't mention children or custody in their posts.

[BulldogTom]

Doesn't apply if the divorce was final after 2008.  The IRS will not use the divorce decree to decide.  Rules about dependency make the decision.  Form 8832 must be use to allow deduction by non-custodial parent.

You missed the point on that one Jack.  The court said the husband may claim the wife as a dependent for 1/2 of the year.  This is a divorce, and their ain't no claiming a former spouse on that tax return. 

 

Tom

Hollister, CA

[joanmcq]

I'm in the middle of a refi, and can't get the guy doing it to contact me back. My ex is bugging the crap out of me to get his name off the last loan we had joint.

[Jack from Ohio]

I was

 

You missed the point on that one Jack.  The court said the husband may claim the wife as a dependent for 1/2 of the year.  This is a divorce, and their ain't no claiming a former spouse on that tax return. 

 

Tom

Hollister, CA

I was responding to Kc's post.  Divorce decrees have become essentially useless for determining who can claim dependents.  The IRS decided to stop being a county court to settle squabbles between divorced parents. 

[BulldogTom]

I was

 

I was responding to Kc's post.  Divorce decrees have become essentially useless for determining who can claim dependents.  The IRS decided to stop being a county court to settle squabbles between divorced parents. 

Right.  But a wife cannot be a dependent.  That was the point of KC's post.  The judge said he could claim the wife as a dependent and take 1/2 of the dependency exemption.  That is never allowed.

 

Tom

Hollister, CA

[kcjenkins]

Actually, there is NO WAY to claim ANY dependant for half a year, friends.  That was what I found so funny.  And that was 'back in the days' when the IRS DID look at the decree as a basis, but only for children.  So the decree was doubly ridiculous.   

[Max W]

Under certain circumstances - MFS - the wife can be claimed as a dependent, but not for 1/2 a year , of course.. 

 

If you file a separate return, you generally report only your own income, exemptions, credits, and deductions. You can claim an exemption for your spouse only if your spouse had no gross income, is not filing a return, and was not the dependent of another person.

 

http://taxmap.ntis.gov/taxmap/pub17/p17-013.htm

[kcjenkins]

Correct, Max, not for 1/2 a year.  I guess that local Judge [who was actually pretty much of an all around idiot who just happened to be "well connected" in our area] never filled out a tax return for himself.  

[Catherine]

Correct, Max, not for 1/2 a year.  I guess that local Judge [who was actually pretty much of an all around idiot who just happened to be "well connected" in our area] never filled out a tax return for himself.  

 

For that he (and we?) should be grateful - think of the mess he would have sent in!  

[Cathy]

I'm in the middle of a refi, and can't get the guy doing it to contact me back. My ex is bugging the crap out of me to get his name off the last loan we had joint.

 

I thought I had gotten my re-fi settled after 18 weeks of processing.  I had a FICO score of 829, had done business with this bank for 15 years without being late on any of my loans...not one single day late....had the closing FINALLY and now they can't get my auto debits from my bank account at their bank straightened out.  At first, it was comical at what all was happening.....have never seen such a mess before in my whole career.  When the lady from the "President's office at the Bank" called me, I just knew things would be o'kay then.  Not hardly...unfortunately!  I went to my branch bank to pay my first note a day early since I had been informed that the auto debits weren't set up for my first payment yet.  My branch manager took my payment to a teller and came right back.  She told me that the teller said my payment would all apply to principal as my loan wasn't due yet.  She was a tad bit upset to say the least!

 

What is really mind boggling is that my neighbor who had a FICO in the 600's started a re-fi on the Internet with Quicken Loans 6 weeks after I started mine.  She closed her loan in 5 weeks with a better interest rate than I have.  They gave her a spiral bound book showing her all of the steps they went through on her loan, her loan papers, etc.  When her loan was processing, she could log on to a Quicken website set up for her loan and see exactly at what step the loan was in at the time.  After the neighbor's loan was approved, my loan closed 7 weeks later...a total of 18 weeks!! 

[Jack from Ohio]

I thought I had gotten my re-fi settled after 18 weeks of processing.  I had a FICO score of 829, had done business with this bank for 15 years without being late on any of my loans...not one single day late....had the closing FINALLY and now they can't get my auto debits from my bank account at their bank straightened out.  At first, it was comical at what all was happening.....have never seen such a mess before in my whole career.  When the lady from the "President's office at the Bank" called me, I just knew things would be o'kay then.  Not hardly...unfortunately!  I went to my branch bank to pay my first note a day early since I had been informed that the auto debits weren't set up for my first payment yet.  My branch manager took my payment to a teller and came right back.  She told me that the teller said my payment would all apply to principal as my loan wasn't due yet.  She was a tad bit upset to say the least!

 

What is really mind boggling is that my neighbor who had a FICO in the 600's started a re-fi on the Internet with Quicken Loans 6 weeks after I started mine.  She closed her loan in 5 weeks with a better interest rate than I have.  They gave her a spiral bound book showing her all of the steps they went through on her loan, her loan papers, etc.  When her loan was processing, she could log on to a Quicken website set up for her loan and see exactly at what step the loan was in at the time.  After the neighbor's loan was approved, my loan closed 7 weeks later...a total of 18 weeks!! 

Find a real bank.