Discussion:Audited P&L for personal loan
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| Thanks for sharing any of your experiences.}} | Thanks for sharing any of your experiences.}} | ||
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| + | {{ForumReplyPost|UserID=Death&Taxes|Date=4 November 2009|Text=In the past I always said that when a bank wants an audited statement, it is code for 'we don't want to lend you the money.' | ||
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| + | Have not heard of this for mortgage financing.}} | ||
Revision as of 22:33, 4 November 2009
Discussion Forum Index --> General Chat --> Audited P&L for personal loan
| November 4, 2009 | |
| OK, need some opinions on this scenario.
My client is trying to refinance his primary residence (to consolidate a construction loan and a previous second). The loan will be approximately $ 900,000 and the loan to value ratio isn't an issue. My client is self-employed, and his business increased substantially in 2008 vs 2007 (net profit more than tripled - I know, hard to believe in this economy). And his income does support the payments on a $ 900,000 loan. The lender is requiring AUDITED financials for the loan (supposedly because of the large increase in net profit on the Schedule C.) Issue 1 - My client is very honest - but his bookkeeping isn't the most precise. I'm not sure he can even find a CPA who could/would do an audit, given his record keeping in prior years. For 2008, he did have a bookkeeper - that does help the situation a bit. Issue 2 - I don't do audits. But the real question, have any of you had this request yet with clients? Is it a new trend; the next logical progression after the lender comfort letters? I told my client that you don't always have to give the banks what they request. But he's not interested in switching to a different lender, and I can't really advise him that the next lender wouldn't request the same thing. I'm not concerned about losing the client - even if he has to go elsewhere for an audit, I think he'll be back to me for taxes. And if he isn't, oh well. I just need some confirmation that this is the new reality for loans, or is the lender being unreasonable? Thanks for sharing any of your experiences. | |
Death&Taxes (talk|edits) said: | 4 November 2009 |
| In the past I always said that when a bank wants an audited statement, it is code for 'we don't want to lend you the money.'
Have not heard of this for mortgage financing. | |
