Upside Down Mortgage Need Help
by Chris
I am upside down on my home mortgage...still making payments and current. But I was interested in some relief as we have a new baby and money is tight. Any suggestions that may help us out would be grateful. Thank you. Mortgage Loan Modification Answer:by Loan Modification Expert - Dan NorthHi Chris, Congratulations on the new baby. You are in for an adventure. Chances are with a new addition to your family that you have a valid financial hardship which is a bottom line requirement for lenders to give a loan modification. One thing you have to understand right off is that you will need to take action now. Since you are current it will take about 6 months to get a mortgage loan modification if you qualify for one, so you are not going to get immediate mortgage relief. Lenders will try to discourage you from modifying your loan even if you qualify since you are current. They figure since you are paying that if they put you off you will just keep paying. Fill in the Pre-Qualification FasTrac Hardship Loan Modification Form that will provide me with more information so I can honestly tell you what you qualify for. As a general rule under the government guidelines you qualify for reduction if your 1st mortgage payments including property tax and insurance is more than 31% of your gross income (this does not take into consideration 2nd or 3rd mortgages but your lender will even though not covered in the government guidelines). If you do not fall into the government guidelines you still may qualify for a loan modification but I would need the information from the questionnaire to see what that might be. Summary of Information Chris Sent Me: Original Purchase Price: $590,000 Current Market Value: $336,000 Lender: Bank of America (formerly Countrywide) Loan Balance:$450,000 (mortgage is upside down by $114,000 over 1/3 the value of the property) Monthly Payment: $3472 6.75% 30yr Conventional Loan Monthly Gross income: $7000 Reason for Hardship: Had baby, wife quite work to care for baby. (Additional note: This is a Doctor with a private practice. His wife worked for him and received a salary. When she quit they not only lost the income but he had to hire someone else and pay them more so his expenses went up higher than just the lost income.) My email with the results: Hi Chris, Well I have some good news. You do qualify for a loan modification under the government guidelines. I can imagine that it might be tight. That house payment is about half of the gross income. I have attached the report on what kind of modification you can expect on the government guidelines. I only did the short form analysis but you qualify for a total monthly payment of $2,180.92 and that amount would include property tax and mortgage insurance. If you were to lower your payment to that amount would that provide the relief you need? I mean would that change the situation enough? I only did the gross income analysis but for a complete evaluation on your individual situation I would also need to collect additional data to see if you would get a better modification on the cash flow model. The attached Results of Database Analysis: Current First Mortgage Payment With Principal and Interest: $3,472.00 New Possible Modified First Mortgage Payment With Principal and Interest: $2,180.92 Total Possible Savings Per Month: $1,291.08 Total Possible Savings Per Year: $15,492.96 Your Current Mortgage Situation: Mortgage Payment (including taxes, insurance, HOA & Mella-Roos)/Monthly Gross Income: 49.60% Recommended Mortgage Loan Modification: Mortgage Payment (including taxes, insurance, HOA & Mella-Roos)/Monthly Gross Income: 31.16% Return to the top of Upside Down Mortgage Need Help See more Mortgage Loan Modification questions and answers like - Upside Down Mortgage Need Help Can Chase Still Foreclose While In A Trial Modification? Where To Go From Here With PNC / National City I Requested Loan Modification But Chase Increased My Monthly Payment Starting A Trial Loan Modification With Chase Bank On An Upside Down Mortgage When Should I Stop Trying To Modify My Loan With Wells Fargo? Chase Home Finance Trial Loan Modification Never Ends - Will They Ever Approve a Permanent Loan Modification? Can I Rent My Home Out After A Making Home Affordable Loan Modification Is This A Government Loan Modification Or An Alternative Loan Modification From Our Lender? Confused By Chase Bank 1st and 2nd Loan Modification How Can We Find Out If We Are Eligible To Lower Our Monthly Mortgage Payment Loan Modification Home | Mortgage Modifications | Loan Modification calculator
|
