Hey Gang!

My seller refuses to sign the 4506-T tax form which I need to upload to Equator. We uploaded a blank form 4506-T into Equator but that was rejected.

Has anyone here had an SS approved without this information?

He is in the military and had been re-assigned to a different station and qualifies for Military HAP.

They also rejected electronic signatures used by Docusign.com on all contracts, etc.

ANY help on this is appreciated!

-Mako

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Sounds like its time to fire your client. Can't help people that don't want to help themselves.

He doesn't say why. He just refuses to do so. Oh well. I'll just have to let him go into foreclosure... :(

Never had BofA reject electronic signatures but just had WF reject them on the Short Sale Affidavit (Arms Length).

I have made it a practice to get the 4506-T and the Dodd Frank signed at the same time as the Listing Agreement -- I guess so I don not run into this problem.  I do believe electronic signatures are becoming more receptive and "legal" except when being Notarized.
Will definitely watch other comments here

And his reason for not signing the 4506-T?

Possibly is "I have not filed my tax returns?"

Maybe he makes too much and will not qualify for a short sale? But he's military and has his orders to relocate... scratching my head here...

No way getting around that 4506-T.   Why is the seller refusing to sign a 4506-T?

iI thought I saw in one of B of A's emails they don't accept electronic signatures.  i'm with Patrick - drop the client if he can not provide a requested form. They have to verify income.  If the problem is he didn't file taxes I remember reading that he can include an explanation that he hasn't filed yet. The IRS will just confirm the returns weren't filed.   It shouldn't prevent him from getting approval. i'm going to take David's advice and start getting the 4506-T signed at the listing agreement- sounds like a great way to avoid a big problem.

Seems like by refusing to sign 4506T, your client is raising his hand and saying 'I am hiding something'  Give him a choice, either sign or let him go!

Bank of America required wet signatures on one of my transactions where we initially used docusign. 

I only begin my listings once I have ALL THE NECESSARY paperwork to get the short sale done.  All you can do is let him know the consequences and let the listing go if he still doesn't comply.

If they won't sign the 4506-T form then you should drop them as clients.

The form is for verification of their tax return, I always get them to sign all documents the bank requires when I take a listing.

Your clients should be thankful that you are trying to help them with the short sale, but seems that they are not very cooperative if they won't sign the form and as for electronic signatures, most will not accept them as yet but if your client isn't available to meet for a  hand sign, perhaps a faxed copy would work.

There will be many forms for your clients to sign during the course of the transaction as you know, is it really worth it if they will not cooperate, short sales are difficult at best most of the time.

You and your client should be working as a team and it looks like you are doing all the work.

I am getting one approved without it because it's a streamline short sale but you cannot get it approved if they require it. Ask your seller why? If they refuse because they didn't file taxes - they need to explain why. Call your negotiator and explain the situation and ask what you need to do after you find out why.

Not paying taxes is not a problem for a short sale .. so that should not be an issue.  I can almost guarantee that he is trying to hide/lie about income.  However if its a required relocation, they usually can still move forward with the short sale .. but they still need all the documents.

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