Hi Y'all, We are trying to close our third deal. It's a cabin near Asheville, NC. We were supposed to close tomorrow, but the lender called last minute and said our business tax return transcript came back rejected. After hours (HOURS) on the phone with the IRS, we discovered our accountant, who we fired months ago, neglected to ever actually file them. 

So. 

We filed them today but they say it takes 6 to 8 weeks to get a transcript back. Our lender says it could take less time, but I think they are trying to guard against us going with someone else. We had bought flights to fly back there and work on it, and have a hot tub coming and a game barn ordered and have renters already signed up blah blah blah. The short of it is, if I wait 6 to 8 weeks, I'm out probably at least 3-5k. We've asked about owner financing and that was a no go. 

Should I shop around to other lenders that might overlook the lack of transcript? (the personal one went through fine, just not the business one, income isn't an issue) Or do I suck it up and just eat the lost money?

For our market Christmas and New Years are huge money makers, so it would really pain me to close the first week of January.  

FWIW, we're getting near 30% coc return for our first deal, another nearby cabin. The second is in the middle of rehab. This one we are expecting 20-25%. The prices here are pretty good for the rents you can charge. 

I'd really appreciate any advice anyone has to give. 

Wow!  Your situation sucks!  (As I'm sure you well know.)  My suggestion is to shop around.  As long as you don't sign for another loan until you figure out exactly what you're going to do, I would think it would be fine, but I'm not an expert on such things.  Good luck!

@Ryan M. sorry to hear this. Your lender should have caught the IRS transcript issue a while back.  There is an option that you take your return to an IRS office, submit it to them there, have them stamp it received, and that will substitute for the tax transcripts.  The sticking point is that the bank could have an "overlay" concerning this, meaning, they may not allow it.  So do ask your loan rep right away if this is permitted with them.  I'll be hoping that  you aren't going through a large bank.

@Jody Schnurrenberger Thanks for the moral support!

@Andrew Postell Thank you for that idea! I just wrote them to ask. I agree someone should have picked it up. Actually this same lender approved me for my last deal in April and the issue didn't come up then because that time the loan officer didn't submit the business returns and so they didn't ask for the transcript. Ugh. Fingers crossed.

Yikes!  Sorry about the janglefluck. Yes, I believe you can indeed have them manually stamped as returned- be sure to also get a receipt of payment. I've also had no trouble with shopping around even with other loans in progress (and I would definitely do this any time a lender throws a last-minute monkey wrench at a deal- this is extremely bad form on their part for any reason. )

I've had great results with Mike Morgan at UFCU on Patton Avenue. However closing before year end is extremely unlikely, with him or any other lender.   Good luck!

"Janglefluck" just moved ahead of "Cluster****" as my new Go To word.  Thanks!