What happens if a lender audits your mortgage and finds an error?
We closed on our house on Dec 19th and my last day at work was the 15th (due to moving). I received a call asking about it and was told that it's technically illegal. My wife and I are concerned about what could happen next. We have no issue paying our mortgage or any other bills. Our lender has already sold the mortgage to Wells Fargo so we don't understand what their concern is as the risk is already off their books. by wboboltz78 from , California. Apr 3rd 2019
Ali Talab (ali@alibtalab.com)
#577 ranked lender in California - 6 contributions
The last day work did not just come out of the thin hair.You knew about it along the loan process.You must had given your 30 days notice to your employer. So, you knew that you will be out of job by the time the loan closes.you withhold the truth and in fact you lied and committed conspiracy to defraud the lender.This is the reality of your scenario.The avenues to recall the mortgage is available, but ,it would be very messy for you.Just remember out of human kindness, they might just let it go. so, you can go wave the flag of victory that how intelligent you are. :)
No, I did not give 30 days notice and that was not the plan. Originally, I was going to continue working and move at a later date to catch up with my wife. But I talked to my boss and he had no issues with my leaving. We're talking a $10/hr retail job while I'm a college student, not a career job. I never realized it would cause an issue such as this. Obviously I would have stayed if I had.
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
More info needed, but in general, if you quit/resigned/fired from your job and you did not inform your lender, then that is illegal. The lender could rescind the loan or call it due and payable. Also, the loan is not off their books.. When a loan is sold, the original lender offers certain representations and warrants regarding that loan.. they are selling it with a form of guarantee.. A guarantee that lasts the life of the loan, and one of those guarantee's is that the borrowers were game fully employed and had the income and ability to service the new housing debt at the time of loan. If you had a $10 per hour job and left that for another $10 per hour job, then it's probably not going to be an issue.. Also, if the payments are made, then it's almost never an issue, however, you did break the law by not informing your lender on the 15th.. And as Ali Talab has voiced his suspicions.. I also have suspicions.. If the 15th was your last day,, when did you have the discussion with your boss as to when you would leave? Was it the day before? The week before? at the very least, you knew 5 days prior to closing that you would not be working, yet you did not inform your lender. In all reality, had you informed them, then there is a go around.. you just get a new job and once you receive your first paycheck you can close.. so, maybe your closing would be delayed a week or so.. regardless, by not telling the lender you quit.. you committed loan fraud. I'm a preferred Lender with California and Arizona being my primary markets. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com NMLS# 226347 / LendUS, NMLS 1938/ AZMB0121893
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