just got loan mod application

[tmurphy8810]

ok here's my situation

 

monthly gross = 2600

monthly net = 2200

 

mtge was 1025 w/taxes

mtge increase is now 1299 w tax increase

 

utilities + cc + auto ins + life ins + ho insur 1334

 

TOTAL EXPENSES 2634

 

I had the help of my DH income until he left and I refi in Feb 2008.

 

Now this is it. I've been making ends meet by maxing the cc.

 

My question is:

is it better to list all the expenses

is it better to have a monthly positive balance leftover

 

the only hardship I can prove, since DH was not on the loan, is that I've had the property tax increase which started this month.

 

I was thinking of asking for a reduced rate and extended terms to lower the pymt

 

Please give my your input...........as I'm requested to return the app within 7 days

[tmurphy8810]

this may be helpful:

 

purchased price 137k

bal 135K

 

refi on 2/08 to 5.875 30 yr fixed

 

never late with a pymt YET

[tmurphy8810]

can anybody give their input on this?

[tiggerlgh]

Just be honest about your current situation.

[NAN101]

Well even though your husband is not on the loan, I think it can be "assumed" that being married (assuming they were aware of that) his income was used to help with monthly expenses.

 

Your "hardship" would be your separation and reduced income because of that.

 

Is this a mod under the making home affordable plan?

 

In the normal course of a modification, they do like to see a positive number pre-modification - even if it's minimal, i.e. $100-$200.

 

If it's a MHA modification, it'll be based on your income.

 

As far as asking for a reduced rate and extended term, LOL - we'd all love to ask for our ideal loan, but I think it's best to submit your financials, your hardship explanation and let them do the offering based on that :-)

[tmurphy8810]

yes this is making home affordable plan

Initially, I spoke with the loss mitigation person who was quite harsh and told me that as long as my income remains the same, then my situation has not changed. I explained that I'm separated and I've lost that additional income. She said I don't have a hardship and that nothing has changed. After I reminded her that beginning this month, property taxes increased by 274 per she agreed to send my the loan application.

 

Now, I have most of the requested documents, but I'm not sure how to word this hardship letter

 

Can you help?

[tmurphy8810]

so as far as my total expenses, should I have 100 - 200 left over after my current payment or leftover after the expected payment

 

......sorry you guys, I just don't want my app to be denied............as you know, time is of the utmost importance

[radi8]

Here's what I could find:

http://www.financialstability.gov/docs/borrower_qa.pdf

 

It looks like they are most interested in your mortgage payments as a % of your income.

[tmurphy8810]

I have not had an update from lender yet. It's been 5 weeks since I submitted all docs.

 

On July 16, I lost my job. Just got the benefit letter from unemployment, stating that monthly will be 1600. If the current mtg pymt is 1299 (including increased taxes, but not insur),

 

would I qualify for reconsideration of new hardship?

 

should I wait til I get a response on the current app?

 

should I contact lender and advise of new hardship and income?

 

how would this affect my chances of approval?

[Gryffindor]

I have not had an update from lender yet. It's been 5 weeks since I submitted all docs.

 

On July 16, I lost my job. Just got the benefit letter from unemployment, stating that monthly will be 1600. If the current mtg pymt is 1299 (including increased taxes, but not insur),

 

would I qualify for reconsideration of new hardship?

 

should I wait til I get a response on the current app?

 

should I contact lender and advise of new hardship and income?

 

how would this affect my chances of approval?

 

I'm so very sorry to hear that you lost your job. It's going to make getting a modification very difficult if not impossible.

 

Are you under the Trial Period (3 months where you make reduced payments) currently? Have you been making the payments on time? Have you tried contacting your servicer to find out the status of your modification?

 

The HAMP loan docs that I recently received state that if you are receiving government assistance (this includes unemployment), that you have to prove that the benefit will last for at least 3 years. But, from what I've read on the MHA website I believe the actual amount of time is 9 months.

[tmurphy8810]

sorry for any confusion................... i don't have a status from the lender. I will call today to see if i can get an update. so far, i've not been late or missed a payment.

 

i thought it might be easier with unemployment, but if i understand correctly, it is more difficult. my benefit paper is dated for one year (whatever that's worth)

 

so is it best for me to ride out the process with the current app?

[tmurphy8810]

i just spoke to the lender. my app is scheduled to be reviewed on next thurs by the committee that meets 1x week. I should get a phone call with a decision on Friday. I'm praying for help with this cause it's killing me. technically, my pymt is not lae til aug 15 so i'll hold off til then. I'll have a room mate starting aug 1 and this will allow me the chance to play catchup, but only if i can get the mtg pymt reduced to something more manageable.

[Move4ward]

I agree with Gryffindor on this one.

 

Lenders see the unemployment income as temporary. A loan mod would end up delaying an inevitable foreclosure with no work/unemployment income. It would up costing them more money to service the loan during that period for the same outcome. I am not saying you can't find a job. It's just how the lender thinks.

 

Since you own the house and the roommate has no ownership rights, he is renting from you. You should be able to include rental income in your financials. However, since you are unemployed, you don't want to update your financials.

Edited August 1, 2009 by Move4ward

[tmurphy8810]

thanks for your reply. i wont update financials and will wait til next week for the decision. I already got my first months rent for at least the next 12 months and DH and I are reconciling (cheaper) as soon as he resolves transportation issues, he'll be moving back home after being away for 18 months. even though i just lost my job, i'm confident that i can make the pymt for the next 12 months with this help. Otherwise, i'd be screwed

[NAN101]

Something to keep in mind - if your modification pending is currently under the making home affordable, you'll have one shot with that. It's available until ? (you'd have to double check) June 2010 I think. So, for instance, if you were to be approved now and found in 4 months you can't afford the payment on your unemployment, you'd be out of luck as far as the gov't plan and be forced into other options, which most likely will not be favorable. Just something to keep in mind - you can only use the HAMP card once.

[zpcsc]

Yes, that is what I read under the MOD, if you are late and can't pay once your MOD has been approved you are penalized. My company has a Loan Modification department & they work around the financials for MODs & short sales. Once I have a seller ready for a short sale I take their info & hand it over to the correct dept that handles the banks & they overlook the financials. If they have to make some changes they do & send in the paperwork. They know what the banks are looking for & they give you advice if you need to wait & hold off before you send the paperwork in. That is why it's important to go with someone that has the experience, instead of going directly with the bank. I am thinking of doing a MOD myself. Being self employed, I was told I need to show physical deposits on my account versus transfers from other accounts. This will show that I am earning money & depositing it. I meet with homeowners who are not paying theit mortgage & the banks want to know what there plans are. Once I take their financials & the banks see that they are in negative againts their bills they automatically explain that they would have to sell under short sale because they don't quailify for a MOD. You have to be careful what you show the banks.

[cinderella]

Being self employed, I was told I need to show physical deposits on my account versus transfers from other accounts. This will show that I am earning money & depositing it. I meet with homeowners who are not paying theit mortgage & the banks want to know what there plans are. Once I take their financials & the banks see that they are in negative againts their bills they automatically explain that they would have to sell under short sale because they don't quailify for a MOD. You have to be careful what you show the banks.

 

I hope you are not encouraging clients to doctor or falsify their income to appear to have an income when they do not. Sometimes, a short-sell/DIL/selling the property is the only loss mitigation option for a homeowner w/o sufficient income to be reasonably expected to pay the mortgage. Find me one creditor other than pawn shops that would extend credit w/o income from a potential debtor?

 

That could be fraud, and it can be reported during underwriting if caught.

 

Several years ago, many folks provided false information to qualify and part of this has to do with the mess we are in today. A very common misconception is that these activities are ok and acceptable today under "modifications." They are not. I have seen homeowners kicked out of underwriting and reported for fraud for these activities.

 

A bank/servicer/investor has every right to treat a modification like a request for a loan, and it is not a free pass to manipulate income to qualify, although many think it is.

Edited August 9, 2009 by cinderella

[zpcsc]

I never meant falsefying your income, you do have to show payments stubs. Since I am self employed it's a bit more complicated. I deposit my checks in an account & then I might transfer it to my checking so they see it as a transfer not as a deposit. This is something I didn't realize until someone brought it up to me. I have to deposit directly into my checking. These are things that we are not aware of that people that have the experience can guide you through & make the process go smoother rather than submitting & then taking forever because of the mishaps. I know what you mean about why we are in this predicament, people were getting approved that had no business in getting into such high loans. I sold an apartment to a couple that were being represented by their "so called friend", when I first saw the contract it read 80% 20% I thought it meant 80% loan w/20% down because it was a new thing. Then after all was set and approved, it ended up being two loans, now the homeowners are trying to resolve this issue because they can't afford their mortgage.

[tmurphy8810]

well i already submitted accurate financials and called to find out the committee did not meet last week. I was told that my app is up review as soon as they convene, (this Thursday). with the enormous tax increase in my area, the mtg pymt is close to 50% of gross. If the lender(DCU) would help to get it back down to the original pymt, i can comfortably keep up for the nexct 18 months.

 

thanks for all your input

[Move4ward]

well i already submitted accurate financials and called to find out the committee did not meet last week. I was told that my app is up review as soon as they convene, (this Thursday). with the enormous tax increase in my area, the mtg pymt is close to 50% of gross. If the lender(DCU) would help to get it back down to the original pymt, i can comfortably keep up for the nexct 18 months.

 

thanks for all your input

 

How did your taxes go up in Chicago in this real estate market? Is your property tax assessment accurate? Protest it, if it doesn't match up with the rest of the neighborhood or actual market value.

[tmurphy8810]

last year tax pymt was 2200. This year first install was 2200. Second install will be 2200. I just got the notice today that i have 30 days to file an appeal. I'll do this tomorrow.

[tmurphy8810]

I just called DCU and the person I've been dealing with is out of the office all week. I spoke with his supervisor, who basically told me that my file was reviewed yesterday and that she has to complete her research on my financials and resubmit for review and it will take up to 2 weeks. She also stated that if my income has not changed from the time I got the loan, the application will be denied because there is no hardship.

 

I wanted to mention that I'm now unemployed, but I thought about the recommendations from CB. What do I have to lose by telling them I'm unemployed if I'm going to be denied anyway? If I chose to, I think I have a couple of days to update financials since the review board meets on Thursdays.

 

What are you thoughts please?

[tmurphy8810]

bump

[cb2cb]

I wanted to mention that I'm now unemployed, but I thought about the recommendations from CB. What do I have to lose by telling them I'm unemployed if I'm going to be denied anyway? If I chose to, I think I have a couple of days to update financials since the review board meets on Thursdays.

 

What are you thoughts please?

 

I know a lot of people are hurting out there and every one wants their mortgage payments reduced, even those who don't really have a true hardship and those who could not possibly maintain even the reduced payments after modification.

 

But, I think, you should be absolutely honest regarding your financial and employment status.

 

If your modification is approved and then fraud is suspected, it will be rescinded and you will not be able to modify again.

You only have one shot at this, so it's better for you to get a job even at lower pay, before you apply.

 

And I don't know what "recommendations from CB" you're talking about, but you will be signing a Fraud Notice when you submit your paperwork and CB will not be there to defend you if you're caught committing fraud.

 

Check this link to see this notice... https://www.efanniemae.com/sf/mha/mhamod/pdf/hmpfraud.pdf

 

 

.

Edited August 15, 2009 by cb2cb

[tmurphy8810]

cb------

 

i may not understand much about the process, but one thing i do know is that comitting a fraud act is not going to work in my favor. My financials have changed because i'm currently unemployed

 

my question is (for anyone out there with experience) should i update my financials now and would it make a difference in the outcome

 

thanks for your feedback