Do lenders HAVE to offer you a modification that gives you a 31% PTI payment?

[CAMTAY]

on 06/26/09 TBW settled a lawsuit with 14 states in regards to some of the "unlawful lending practices" and they were ordered to participate in the Making Home Affordable Program. Does that mean all modifications must conform to the 31% DTI ratio or is that just a suggestion? TBW offered us a MOD, but brings our payments from 51% to 42% and they are not moving-seems more of a refinance than a modification, but I am scared to bite the hand that is saving my home????

[SillyWorld]

All depends on your income outgo, and family sizes, some can live on makeing 45% Mortgage payments and some have issues making it on 25% mortgage payments...

Example: you Make $1000.00 a month gross because of layoff or what have you, and your Payment for mortgage is 890.00 a month without Taxes and INS thats almost 89% leaving you only 110.00 to live on that would be impossible so any mod wouild be declined and banks may tell you to walk or sell...

Now If you have a 200,000.00 loan and 2200.00 a month payment and your Gross is $5,000.00 that would mean your MOD should be 2100.00 a month payment, but if only 3 in the household and you have little bills then again you would be denied even though you were paying 2200.00 be 45% of Gross you still have plenty of Cash to survive on so then they may give no mod

All up to the banks whichever makes the the most profit they will do...

[minknmelissa]

I have been turned down twice for MHA through B of A everything shows that i sould be eligible mtg is 1865 without ins . We bring a reduced income gross of about 4000 We fit the dti but when i call they deny me write away i am about to hire a loan modifier but i am scared because iam fifty one days late and i would be taking my payment and paying them i have five kids and its keeping me up at night just thinking about this I don't know what to do everytime i call Bank of America they give me a different reason as to why they won't but when i asked to talk to a loss mitigation specialist they said to call back another day
please help

[Moe Bedard]

All of these programs are VOLUNTARY and what that means is that they can do what they please in the end. The MHA is a voluntary plan that is great PR for banks and Obama. But in the end, many will not be approved and I assume you are not late.

If you are not late, then I think they will voluntarily deny you.

[mbmullen]

Before you hire someone to negotiate on your behalf, maybe you should try NACA?

[SillyWorld]

If your Gross income and 31% of that is more than your Mortgage payment then I suggest you contact NACA.com ASAP and then see what they can do

[CAMTAY]

We were actually months late with our payments, but due to the "servicing rights" being sold effective 05/01/09 and then the loan being lost until 07/10/2009, and then, a "sorry" letter, your loan was never really sold. I think they offered us the mod only because they knew they violated laws in regards to the servicing rights and notification practices. We signed the papers, glad to have the mod, but now as comfortable with the figures as i had hoped??

[Paul Molinaro Esq.]

NO LEGAL ADVICE HERE - JUST GENERAL INFORMATION - ANY SIMILARITIES TO ANYONE'S ACTUAL SITUATION IS JUST ONE HECK OF A COINCIDENCE.

ALSO, THIS IS JUST MY EDITORIAL OPINION AND DOES NOT REFLECT THE OPINIONS OF MY LAW FIRM OR ANYONE ELSE.

Allegedly well-funded and fully-lawyered up banks are required to follow enacted laws under the threat of being sued by broke consumers or taken to criminal courts or administrative courts by allegedly overworked allegedly understaffed and allegedly bought off politicians.

Summary: the banks get to do what they want.

However, knowledge is, as is often the case, power in this situation... a well educated borrower can negotiate, threaten, and make intelligent deals with lenders. The bottom line is the lenders want money and if you can show them they lose less money by working WITH you than by taking your home, they often take the less expensive way out.

And for those people out there with great cases against the lenders, stay on 'em... they need to be held accountable for their actions.

- Paul

- Paul

[SillyWorld]

I only feel these banks messed up the country, all of us took pay cuts etc...And food and durable goods prices are up to crazy prices...I feel the banks should take a cut at least mnake a deal for 5yrs lower int then by then hope we are all back on the road to success

[925girl]

Banks will not help existing customers.

They can write off the loss, get new blood to pay for their assets which were hyperinflated (by their own assessor's) oh and get bail out funds. Folks can sometimes sign 40 year notes to guarantee a place to live but never own. People think real estate will rebound again and that it's already happening. I will vote each and every one out of office. Big Deal. I keep hearing how they will hear from their constituents on this break but who actually gets their ears? I know of no one do you?