I have have a client who is seeking a home loan for the purpose of aquiring a foreclosed upon property. His plan is to renovate it then either flip it or rent it. He has not decided yet. Unfortunately he was laid off just prior to getting ready to close. He is laid off every winter. This winter everyone in his area who works in a similiar capacity is being laid off early.
He is also rehired every summer and has averaged around the same annual income for the past six years. I decided to get creative and contact his employer. I asked them to sign a contract of employment that I wrote myself. It did not bind them to anything that they were not already prepared to do. I submitted the contract of employment and told my borrower that I would have an answer quickly. The answer has not come so quickly, Underwriters are really analyzing every detail.
I am not sure if a contract of employment will suffice or not. I have used contracts of employment on multiple occasions for people such as teachers and professors who are getting their financing done in the summer. I was about to let the loan file die, but I wanted to give it one last shot before I canned it. I just got word back today that the contract for employment will be ok. When you are faced with a difficult situation like this; get creative!
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