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Kathy Godin's Blog

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Didn’t Get W-2 and It’s Needed to Apply for Mortgage

W-2s required with mortgage application.  Molly and Fred didn’t get one.  One employer not responsive; other went out of business.  Can anything be done?

Let’s deal with Molly first.  Her employer missed the January 31st deadline.  Molly called.  She wanted her W-2 and received a run-around instead.  What now?  Valentine’s Day important to the process.  Molly phoned IRS at 1-800-829-1040.  IRS willing to nudge employer after Valentine’s Day.  They assumed Molly attempted to solve problem herself.  Naturally, IRS will ask for information about you and your employer so have it handy.  They will contact employer.

Fred’s employer went out of business.  He tried finding the owner.  No luck.  The IRS nudge to Molly’s employer did not work.  They placed an offer on their dream home, the clock is ticking and they need to close by a certain date.  If they don’t meet terms in real estate contract, they could lose the house.  Situation hopeless?

No.  The IRS was called again.  Lender won’t accept pay stubs as substitute to W-2s.  IRS stated that Form 4852 should be used as substitute for W-2.  Even though Form 4852 is simple, you need to furnish income figures and employer information.  IRS wants two additional pieces of information:

1.  Where did you get your numbers?

2.  Explanation of your efforts to obtain W-2.

Fred and Molly attached their Form 4852s to their tax return.  Mortgage company requested IRS transcripts for Fred and Molly.  Even though pay stubs not accepted by mortgage company as substitute for W-2, they were required to show current employment and provide details of your income.  Fred was fortunate to find work with defunct company’s competitor.

Fred and Molly did buy their dream home.  The situation with W-2s caused delays.  Fortunately, they had a good real estate agent.  The mortgage loan officer kept the agent informed, with their permission of course.  Armed with this information, the agent was able to negotiate an extension with the seller.

P. S.  A YEAR LATER:  Fred and Molly are happy – they got their dream home and now they’re expecting.  The IRS is happy (as happy as they get) – tax return filed on time.  We’re done, right?  Not quite.  Fred and Molly want to make sure income, social security tax withheld and Medicare tax withheld was credited to their accounts.  Social Security Administration has stopped sending yearly statement as a cost-cutting measure so Fred and Molly called them at 1-800-772-1213 asking for a statement.

Kathy Godin, Award-Winning Loan Officer and Branch Manager

Prime Mortgage Lending, Inc.

(919) 789-9933

Where people, not computer robots, answer the phone.

Proudly Serving All of North Carolina

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