Legal Question in Real Estate Law in New York

My in-laws had qualified for a refinance at a much lower rate until the bank realized that they owned another property. Because they had failed to report the rental income it was seen as an obligation and they were denied the loan. If they file amended tax returns for the past 2 years to reflect the rental income will they be likely to qualify for the loan?


Asked on 9/07/12, 6:23 pm

2 Answer from Attorneys
Philip Katz Fink & Katz, PLLC

This is probably a question to ask the lender. They may be reluctant to do business with your in-laws because they were not forthright the first time around, so they may need a new lender. I also suspect that it wasn't just their failure to report rental income, rather their ownership of a second property throws off their debt to income ratio, which is what banks rely on to figure out if an applicant qualifies for a loan.

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Answered on 9/08/12, 5:16 am


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