“Is it really true that with a no-documentation loans that you can just claim any income and obtain any size loan? That must be why there are lots of foreclosures now.”
***ANSWER:
No and yes.
No doc loans have to make some sense to the loan underwriter (decision maker).
I once received an offer on my clients home and the buyer was a gardener who was claiming $10,000 per month income in order to qualify. Of course, he could have been the preferred gardener of scores of the rich and famous of San Diego. But he wasnt.
And the underwriter shot him down.
But youre right about the foreclosures. Some of the people losing their homes did exaggerate their income, only to find that they couldnt make the payments because they didnt make the money they said they did.
