Taking out a mortgage, LM tax return, bank

[doug555]

One thing you can count on banks is that they have no aversion to money.

I gather there is still a mortgage on the home you just sold? I don't think you explained things correctly in your opening post. Something is not making sense. Why are you seeking approval to sell your home?

Did you sign the paper? Why consent to let the bank look over your IRS Return? What are you getting in return?

So we just sold our house, and as I'm signing paperwork at the bank for pre-approval, I come to a document that gives the bank permission to pull my return from the IRS. I immediately was concerned b/c when they see the return, they'll see a good income and an almost ZERO adjusted gross income. I'm hoping that they'll see my monthly income from pay stubs and W2s far outweigh my monthly liabilities and shoot my application on through. Anyone have any experience with taking out large loans and having to present LM returns?

Does this "pre-approval signature" grant the bank the authority to now effectively lien the signor's "JOHN HENRY DOE" estate for the amount of the "loan"?

Isn't this "lien" exactly how the bank funds the check for the "loan", by using the signor's own credit-lien (credit line) on his own "JOHN HENRY DOE" estate?

Since this fact is never disclosed to signor, doesn't this amount to constructive fraud by the omission of a material fact concerning the actual cost and risk of the loan affecting all parties?

See: The Fraud




Modern Money Mechanics - page 6:



Modern Money Mechanics - page 7, illustration 3:



Two Faces of Debt - page 19: