So we just moved to a new state and closed on a house about a month ago which was contingent on the new job i started here. I got them the letter of employment and verification of income that I’d be making and we closed based off that information.
They said they wanted to see pay stubs after closing as well to confirm this new income.
That’s where the problem now lies.
This new job misled (lied) about the earnings and im not making anywhere close to what they put on the verification of employment.
The lender is now asking to see paystubs but I’m afraid of what might happen if they see im not making close to what they said I would.
Can they foreclose on us over this? Im in a right to work state so i doubt my employer could be held accountable for this. Anybody gone through something similar?
This sounds like a trailing condition that was approved by the lender and part of the requirement to get the loan sold. I would get them what is needed and explained what happened and do everything you can to help get it resolved. The lender took a risk on you(after funding condition fort paystubs), based on the letter, just like you did with the employer. There should be a way to get it handled. If I can help further, me know. TY Matt
Basically the lender got screwed over. You already closed so they can’t take the money back or anything like that. They cannot foreclose unless you stop paying. Send them the paystub. If they ask why it’s so low, tell them what your employer told you.
Hopefully you’re still in a position where you can repay the loan. Otherwise you have a serious problem.
@Joss
Thanks for the advice i appreciate it. Yeah unfortunately this new job has left us in an extremely bad spot.
Im even trying to figure out how to sell the house without taking a loss now because from what I’ve gathered from talking to other people here, it appears as though every employer in my industry pays just about the same despite posting otherwise on their job postings online.
Im a truck driver and this industry is infamous for employers lying about earnings but I never experienced it at all until now.
@Aris
Absolutely provide the documentation, BUT the above comment is incorrect. The lender is in no way just “screwed over.” This all depends on what exactly is spelled out in the promissory note regarding the post-closing condition - you need to look at exactly what it says and possibly even get some professional (non-Reddit advice). While the mortgage has already been funded and the sale has closed, there may be an acceleration clause attached to this condition - meaning that if the condition (income level in this case) is not met, the lender can call in the note immediately and you would owe the entire loan balance on demand and if you are unable to pay, then foreclosure can be initiated. With that said, lenders are not eager to foreclose and may be willing to work with you, but might mean they want a higher interest rate or something. So while the sky may not be falling, you cannot take a cavalier attitude that the lender is SOL as suggested above. You may want to spend a few bucks and consult an attorney ASAP before you send the documents, primarily to ensure that you guys do not get accused of any kind of mortgage fraud.
@Remy
No lender will call a mortgage due they just originated because of an underwriting oversight. Could they? Sure. But realistically they would never do that. They are going to roll the dice and hope it gets paid.
@Aris
That sucks, sorry you are going through that. If you get into a spot where you aren’t going to be able to make the payment, call the lender’s servicing department before the payment is late. The lender really doesn’t want to foreclose, it’s basically always a loss for them. Given your scenario it’s also likely they won’t be able to sell the loan to an investor, which means it’s their money on the line. They may be willing to have you make interest only payments or something like that.
If your plan is to sell, home try to do it on your own, realtor commissions will be a big expense you’ll want to avoid if possible.
@Aris
Your mortgage also may have had the misfortune of being selected for Post Closing QC. If the difference in income impacts the loan quality significantly it could impact the originators ability to securitize it.
Remy said: @Aris This new job misled (lied) about the earnings and im not making anywhere close to what they put on the verification of employment.
Is your job commissions-based?
Yes we are paid per load but the high paying loads are reserved for senior drivers who have been here for a long time and they’re also on a different pay scale. Anybody who isnt a senior driver isn’t making anywhere close to the amount stated in the job posting. I guess the catch is “you can make that much if you stay here and eat shit for years” but it would be nice if they were transparent about it
@Aris
I have never encounter lender coming back asking for paystub after closing. I was purchasing a home using job offer lettter when I do mortgage 3 years ago. It was fine and lender never asks for anything past closing.