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Mortgage Grapevine

Asset depletion

Okay...I'm going to show my ignorance. I got an email from a wholesale source. The email said that they did "asset depletions".

I sent the AE an email asking him to explain that , but he hasn't responded. I went to the company website and found nothing about it.

So now I am going to the true source of all things mortgage...The Grapevine.

You can tell how stupid I am if you want but also please explain what "asset depletion" is.

Thanks
by Forced correction June 25, 2010 5:10 PM


It's a painful and ongoing process that a man goes through when he marries a woman.






by Steven701 June 25, 2010 5:29 PM


Asset depletion loans are loans that use an assumed liquidated asset as income to cover
costs of living. Used to be you had to be completely unemployed or retired. No other
income with certain exceptions (like SSI). They had formulas for verifiable assets that
would be scheduled for depletion over a certain time period.

For example, you have a liquid asset of $500,000 and no other real income. You schedule
$50,000 per year for the next 10 years, thus depleting the asset and using it as income
to qualify for the loan.

If I remember correctly, you need fairly good credit scores and the LTV's were limited
(at least back then) to around 75%

Someone here probably has more direct knowledge on them, but that's the gist of it.






by kabb June 25, 2010 5:30 PM


It's a painful and ongoing process that a man goes through when he marries a woman.

by Steven701 June 25, 2010 5:29 PM

Actually Steven, it's a painfully quick process that a man goes through when they
divorce a woman.

At least that's from personal experience.
by kabb June 25, 2010 5:31 PM


It's a painful and ongoing process that a man goes through when he marries a woman.

by Steven701 June 25, 2010 5:29 PM

Actually Steven, it's a painfully quick process that a man goes through when they
divorce a woman.

At least that's from personal experience.
by kabb June 25, 2010 5:31 PM


Thanks for the knowledge as well as the humor. I have add that while a marriage may result in asset depletion having children certainly will.
by Forced correction June 29, 2010 12:24 PM


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