Stated Income

Categories: Loan and Mortgage, Credit and Debt, Real Estate,

A documentation requirement where the lender verifies the source of the income but not the amount. See What Are Mortgage documentation requirements? and stated income loans: Lie to Get a Better Rate? strategic default Default by a mortgage borrower who has the capacity to make the payments on his mortgage but elects not to because of negative equity -- the loan balance is substantially larger than the house value. See strategic defaults: Can We Keep Them In Check?