Did the buyers file and pay the balance due (if any) awhile ago? If the balance due has not yet been paid that can lengthen the time to access the tax transcript. …
I followed up again this morning about the tax transcript. I happen to know that it only takes 5 minutes to get a secured PDF tax transcript downloaded from the IRS website (had to do it for FAFSA verification just last week). Turns out that the lender sends in a signed 4506 form (might have numbering wrong) where Buyer has signed the document allowing lender to get access to ‘copies’ of tax return. This is submitted through a 3rd party company that also runs credit reports for the bank. So, we are at the mercy of some 3rd party AND the IRS to get ‘copies’ of tax returns loaded to this 3rd party’s website.
Bank claims they are checking the website every couple of hours looking for the document to appear. For heaven’s sakes, it takes 5 minutes to get a tax transcript off the IRS website!!! What a bunch of bureaucratic red tape.
Good point about the 2014 return - I have no idea when the Buyer submitted their tax return and I know it takes the IRS several weeks to get the return available for access through their system.
I don’t think the Bank is expecting a 2014 return, they should take 2013 returns. But call to reconfirm.
On the 4506-T, you can indicate which year of transcript requested. So make sure it is filled out right, otherwise, you will wait forever.
I’m not allowed to view or ask anything about all of this. My agent is riding hard every couple of hours with the lender, that’s all we can do. But they are stuck on waiting for the IRS transcript and we can all only wait for this 3rd party (whoever they are) to get the thing loaded for the Loan Processor.
I don’t blame my Buyers for only putting 20% down. At today’s interest rates, who wouldn’t take advantage of borrowing every dollar possible on a low interest loan?
Torture.
Can the Buyer’s accountant submit a copy of the tax return directly to the lender? Can your Agent ask someone to confirm that the correct tax year request was submitted?
Any chance you can get some carrying costs refunded if this continues to drag on? After all, it is costing you money–and you did have a closing date in the contract. I can understand wanting to close with this buyer, but maybe if the buyer was paying those carrying costs they would be doing whatever they could to get things closed.
I have just been informed by the lender (through my agent) that their best guess, based on other documents being returned from the IRS, to receive this stupid copy of tax return is Wednesday. I am livid and have formally requested that they accept a ‘Tax Transcript’ which is a non- modifiable pdf from IRS.
Meanwhile, our escrow expires today. So, I will be asking the Buyer to submit a Request for Extension and I am going to charge full daily per diem amount that equals my carrying costs. I gave them a one week extension when they had to change lenders, but now it is All Business !!
coralbrook, that seems reasonable.
Wow, that’s terrible! We signed and PDF’d tax transcript requests during our loan process without any issues. Then the notary who brought over our loan papers for zillions of signatures on Thursday had us sign two more requests as part of the hundred plus pages. No idea why since the closing was completed on Friday. We are now SOLD on the MLS - hoping to see yours on Wednesday!
The underlying issue here is that most escrows are 30 days. When you sign those IRS 4506 tax return request forms during the loan initiation process, the lender has all the time in the world (usually 20days) to wait for this stuff to trickle in from all these external parties. But, because we are really only at about Day 10 with this new lender, they are still waiting for things to trickle in. So we have to think of it as Day 10 of the loan process.
You have been more than generous with the problem with their lender, and it’s costing you money. Time for them to pay those costs.
I actually almost said something about a per diem last week but then didn’t because I thought maybe it didn’t/couldn’t work that way. I mean the borrower gets a pro rata reduction for days not in the loan (e.g only 15 days in April).
I guess one bank could not use the paperwork from another bank, they cannot trust each other either.
And maybe your charging the buyer gives the buyer more ammunition if they do decide to sue Quicken Loans.
Come on, do not start a frivolous law suite! Its so minor and so little money, you cannot even recover your own time, let alone lawyer charges.
I skipped several law suites myself, one for $6000 in small claims the other is over 40K.
I am not involved at all with what Quicken Loans did to the Buyer. However, I think it would be reasonable for the Buyer to ask for a return of any fees they paid to Quicken Loans, but none of my business.
Still waiting for the dang document from IRS. Since requesting ‘copies’ of the tax returns from the IRS is something internal, I doubt if the Buyer has their hands on the ‘copies’ collected by Quicken Loans. Besides, that type of document wouldn’t be admissible by another lender. Just like the Credit Report… each lender is going to require that they pull their own credit report for the Buyer.
Since this is dragging on I had to go over to the project today and try to water the plants. Luckily I left some hoses there for the front plants - but it still involved me crawling up into the dirt above the wall and try to get the hose on everything.
But, I was in a pickle on how to water the potted plants in the courtyard. There isn’t a hose out there and I don’t have any receptacle available to carry water out from the kitchen sink or something. I finally had a brainstorm… pulled out the icemaker box and went out and put tons of ice on each plant. Hope I didn’t kill them or something.
Necessity is the mother of invention.
The plants are chillin’.