Debt To Income Ratio And Loan Modification
by Tandy
How will my debt to income ratio affect a loan modification? Do percentages appy when doing a loan modification? How low should I expect the mortgage company to lower my interest rate if it is already 5.535%? Mortgage Loan Modification Answer:by Loan Modification Expert - Dan NorthIn a Making Home Affordable Modification does have rules regarding the debt to income ratio after the loan is modified. If your debt to income is greater than 55% after the modification you will be required to get debt counselling from a HUD certified debt counselor.The debt counselling is paid for by HUD so there is no charge to you but you will have to attend several meetings with the counselor and will probably have to read some materials and work out a budget and handlings to lower your debt to income ratio. Your loan modification would not be stopped if you did not attend but it is a requirement that you see the HUD certified counselor. I have not seen any government guideline that covers failure to appear for debt counseling, only that you get signed up and scheduled for debt counseling. The debt counselor is only paid after the counseling so I am sure that you will be called by the counselor and reported if you do not attend. How Low Can I Modify My Interest Rate To?
How Do You Know If The Lender Will Approve The Loan Modification After The Trial Modification?Your lender will do what is called a Net Present Value Test (NPV Test) and it is pass or fail. Basically the test determines if the lender saves more money by modifying the loan or foreclosing on the mortgage. The test is a computer program and the math takes a college degree to understand so once I get someone to program it for me I will add it to the website but until then it is a judgement call on what lenders have modified in the past and how many bank owned foreclosures are in the area. Even if you make all your Tial Loan Modification payments it is possible that the loan modification will not be approved if the lender feels he will save more money by foreclosing. Return to top of Debt To Income Ratio And Loan Modification Click here to post comments. Ask Your Own Mortgage Loan Modification Questions Pre-Qualify for FasTrac Hardship Loan Modification Free pre-qualifying for FasTrac Hardship Loan Modification. No charge to find out if you qualify and what modification you qualify for. See more Mortgage Loan Modification questions and answers like - Debt To Income Ratio And Loan Modification Where To Go From Here With PNC / National City Can Chase Still Foreclose While In A Trial Modification? Bank Of America Trial Loan Modification Offered But Payments Increased Should I Stop Paying My BOA Mortgage If Turned Down By Bank Of America for Loan Modification? IndyMac Bank Wants A Profit And Loss Statement More Recent Than Last Month When Should I Stop Trying To Modify My Loan With Wells Fargo? Citi Bank Said I Qualify For Loan Modification, Can I Ask For Reduced Interest Rate? Chase Loan Modification Agreement Increases My Payment By $1300 I Requested Loan Modification But Chase Increased My Monthly Payment Loan Modification Home | Mortgage Modifications | Loan Modification calculator
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