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Answers (6)
- Modification Secrets
- Contributions:58
Hi,
The equity in your home really does not affect whether the lender will approve or reject your modification. However, if the lender feels that you would better qualify for a refinance rather than a modification, they might deny the modification request. I have seen people get approved with equity and also with no equity in their home. As far as having to be delinquent with you payments to qualify, if you are worried about your credit, you should know that a modification will most likely affect your credit negatively in the short term regardless of your payment history. The basic element for qualifying is the DTI ratio. Lenders want to see that between 31-35 % of your income is being used for total housing expenses. If you fall within the guidelines and can write a good hardship letter, you are on your way. For More Information about Loan Modification, Just Click on my Profile
The equity in your home really does not affect whether the lender will approve or reject your modification. However, if the lender feels that you would better qualify for a refinance rather than a modification, they might deny the modification request. I have seen people get approved with equity and also with no equity in their home. As far as having to be delinquent with you payments to qualify, if you are worried about your credit, you should know that a modification will most likely affect your credit negatively in the short term regardless of your payment history. The basic element for qualifying is the DTI ratio. Lenders want to see that between 31-35 % of your income is being used for total housing expenses. If you fall within the guidelines and can write a good hardship letter, you are on your way. For More Information about Loan Modification, Just Click on my Profile
- NTETS, "Mr Caveat"
- Contributions:6436
STOP LIQUIDATING IRA FUNDS... its literally the worst thing you can do. you pay huge fees on top of the taxes it will eat up your nest egg in a heartbeat.
it sounds to me like the best way for you to get out of your situation is a strait sale, its a hassle, you dont want to do it, but that is the reality of your situation. becoming delinquent for a few more months is a dangerous game to play, first you will probably lose your credit and access to credit, from what i hear lenders can and are still upping card rates and dropping limits on people whos credit score is falling(the bill passed a few months goes into effect in November?) think about how those sorts of moves might make your spot even tougher. you could also see other fees starting to add up and if you have problems paying those, assuming you are unsuccessful, you could lose your house and equity. the loan mod game is for people who have nothing to lose.
other options might be a room mate or renting out the whole home while you take on another residence? honestly the odds that you will get principal forgiven is non-existant, given that the bank will probably make money on the foreclosure process. there is no mandate for banks to follow through with mods and that is really your only bargaining chip...
if its a temporary income issue, like a job-loss, you may be eligible for either a traditional refi, perhaps interest only loan or something or a loan mod that reduces the interest that you are paying... i would though, be prepared to explore ALL my options, dont expect the bank to fix it for you
it sounds to me like the best way for you to get out of your situation is a strait sale, its a hassle, you dont want to do it, but that is the reality of your situation. becoming delinquent for a few more months is a dangerous game to play, first you will probably lose your credit and access to credit, from what i hear lenders can and are still upping card rates and dropping limits on people whos credit score is falling(the bill passed a few months goes into effect in November?) think about how those sorts of moves might make your spot even tougher. you could also see other fees starting to add up and if you have problems paying those, assuming you are unsuccessful, you could lose your house and equity. the loan mod game is for people who have nothing to lose.
other options might be a room mate or renting out the whole home while you take on another residence? honestly the odds that you will get principal forgiven is non-existant, given that the bank will probably make money on the foreclosure process. there is no mandate for banks to follow through with mods and that is really your only bargaining chip...
if its a temporary income issue, like a job-loss, you may be eligible for either a traditional refi, perhaps interest only loan or something or a loan mod that reduces the interest that you are paying... i would though, be prepared to explore ALL my options, dont expect the bank to fix it for you
- Christopher Wilson, "The Mod Squad"
- Contributions:177
Alrighty then, you sound like a good candidate for a loan mod. Wells may be lying to you, or they may be telling you the truth..not likely. Different investors do have different guidelines for the modification process. Possibly, you may be eligible for the HAMP; however, we are seeing that some investors with Wells did not take the TARP monies, so they are not obligated to modify your loan under these terms. The only way to find out is submit a request. It sounds like they will not even consider that though. You may want to get an attorney involved. They will find out who the investor is, what the guidelines and potential for a modification is, and if this is possible. Make sure they are real estate attorneys and offer a 100% money back guarantee. I know in our cases with wells, we submit as HAMP and if the investor is not particapating, then we take the necessary steps. If you do not know too much about this program, take a look at my profile for some links and useful articles. Best of luck
- W.J. Bradley Mortgage Capital, "serviceoriented"
- Contributions:42
Unfortunately, some banks do require that you are behind on payments. I would first call a local lender and see what traditional refinance opportunities you have while your credit is in good standing. If that scenario does not fit then I would look at the modification. I can't advise that you fall behind but I would not exhaust your savings or retirement. maintaining your credit score is not worth the piece of mind of liquid assets in such an economy.
- Aaron Opfell, "SunriseVistaMortgage"
- Contributions:249
Being "underwater" on your mortgage(owning more than the home is worth) does make you a lot higher priority, but is not essential to obtaining a loan modification. Loan modification decisions are much more heavily based on payment status, debt-to-income ratio and cash reserves. What your situation may end up producing is some sort of a refinance offer from your lender first and if that can't be worked out then a loan modification may be offered.
- Kelly Lacey, "kellylacey"
- Contributions:797
http://makinghomeaffordable.gov/loan_lookup.html
I attached a link for the Making Home Affordable website that has the links to Fannie and Freddie so you can see if either one is the investor.
If they aren't, then you may be out of luck...
Good luck!
I attached a link for the Making Home Affordable website that has the links to Fannie and Freddie so you can see if either one is the investor.
If they aren't, then you may be out of luck...
Good luck!
Can we get a loan modification if our home is worth more than we owe?
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