Loans, Debt & Credit - View Single Post - DENIED-after 10 months of waiting! HELP!

sadness · 10-07-2009, 02:16 PM

Hi everyone-

I just discovered this site and wow, great info. Here's my sad story...

So my husband and I started the loan modification process on our 1st mortgage with Wamu/Chase back in January 09. My company cut everyone's salary 20% as of Feb 09. We waited 90 days and then we were told to resend everything since they were going to try to modify the loan under the government requirements. Every time I called to check up on the status, there was always something missing (which i was never told to send). Finally on 8/21/09, the full packet went into review. I called twice a week to make sure they were keeping on top of it since there were all these mistakes throughout the year. I don't even want to go into the details of every single call because i'm sure you all know of them, sometimes they are smart and helpful and most times not.

On 9/30/09, we were denied the loan modification. We were told that we had a income/debt ratio of 36% and needed to be at least 40% for our bracket. Turns out when we used the numbers they told us they used, they didn't account for the property taxes and HOA. We are way over the 40%.

I called and called and another person told me that even if we met the 40%, we still didn't qualify because our net income was over 120% of the mortgage. They said that our income was more than 120% of our PDF (??).

Does anyone know about this 120% ratio?
It seems to me that they are basically saying if your mortgage,taxes, HOA is $2000, then your net income can only be up to $2400. That seems a bit ridiculous.

Anyways, we are current customers. We have exhausted almost all of our money to keep our place (we now carry balances on our credit cards in order to make payments, we've cancelled cable, home phone...i even took a supplemental part time job (which only can give me about 8 hours max per week if i'm lucky).

At this point I don't know what to do. Refi doesn't look like an option since we lost about $150k of our value (based off the bank's rough appraisal).

The loan is only in my husband's name...so we might consider defaulting as our last resort.

Any advice? Anyone have success with a Wamu/Chase loan mod? I'm so frustrated.

10-07-2009, 02:16 PM	#1 (permalink)
sadness Member Join Date: Oct 2009 Posts: 16 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	DENIED-after 10 months of waiting! HELP! Hi everyone- I just discovered this site and wow, great info. Here's my sad story... So my husband and I started the loan modification process on our 1st mortgage with Wamu/Chase back in January 09. My company cut everyone's salary 20% as of Feb 09. We waited 90 days and then we were told to resend everything since they were going to try to modify the loan under the government requirements. Every time I called to check up on the status, there was always something missing (which i was never told to send). Finally on 8/21/09, the full packet went into review. I called twice a week to make sure they were keeping on top of it since there were all these mistakes throughout the year. I don't even want to go into the details of every single call because i'm sure you all know of them, sometimes they are smart and helpful and most times not. On 9/30/09, we were denied the loan modification. We were told that we had a income/debt ratio of 36% and needed to be at least 40% for our bracket. Turns out when we used the numbers they told us they used, they didn't account for the property taxes and HOA. We are way over the 40%. I called and called and another person told me that even if we met the 40%, we still didn't qualify because our net income was over 120% of the mortgage. They said that our income was more than 120% of our PDF (??). Does anyone know about this 120% ratio? It seems to me that they are basically saying if your mortgage,taxes, HOA is $2000, then your net income can only be up to $2400. That seems a bit ridiculous. Anyways, we are current customers. We have exhausted almost all of our money to keep our place (we now carry balances on our credit cards in order to make payments, we've cancelled cable, home phone...i even took a supplemental part time job (which only can give me about 8 hours max per week if i'm lucky). At this point I don't know what to do. Refi doesn't look like an option since we lost about $150k of our value (based off the bank's rough appraisal). The loan is only in my husband's name...so we might consider defaulting as our last resort. Any advice? Anyone have success with a Wamu/Chase loan mod? I'm so frustrated.