lender deny becauase of high retirement fund ???

[tomser]

Anyone out there help me please and please

I am going to send loan mod paper but here is my holding back

I think I meet all the criterias that the loan mod requires, HAMP or .HAP ( retired, new reset of higher payment interest only payment , reduced income and PITI 31% so on ,,,)

My income comes from social security and monthly withdrawal from retirement fund which has high 6 figure( bond,mutual fund,and stocks .

Does lender disqualify loan mod If they see I have high 6 figure retirement fund ???

thank you

i need help

tomser

[jakelabry]

You've already asked this question and the answer is still, "yes, they can." If you have sufficient liquid assets to pay then they can deny you.

[faith]

Originally Posted by tomser

Anyone out there help me please and please

I am going to send loan mod paper but here is my holding back

I think I meet all the criterias that the loan mod requires, HAMP or .HAP ( retired, new reset of higher payment interest only payment , reduced income and PITI 31% so on ,,,)

My income comes from social security and monthly withdrawal from retirement fund which has high 6 figure( bond,mutual fund,and stocks .

Does lender disqualify loan mod If they see I have high 6 figure retirement fund ???

thank you
i need help

tomser

Dear Mr. Tomser,
Sir, I am very sorry if we have not answer your question in the time you need most. Please forgive us for not being sensitive to your situation.
It's really hard to know what the lenders will do. You need to send the loan modification application and their requirements. Inform them that your income is thru Social Security retirement payments.

All I know is the lender will require you a steady monthly income. In your case, Sir is your social security payments. My experience with the lender when I have applied for a loan, I've tried to add my retirement income through stocks and 401k but they did not consider it as income because I did not get paid a monthly retirement income. However, they considered it as an asset in case something happens they know that we have some assets that we can use in case of emergency. So actually it maybe a good points for you.

You have to send the applications and the forms so you will find out if you are qualified or not. I think you will be qualified because there is no sense of withdrawing money from your investments just to make your monthly mortgage payments. If they denied your loan modification, try to refinance, just keep trying and don't be afraid. No one will get your money without court's approval. Just take a deep breath, say a little prayer and mail the forms. Hope all is well with you and your wife.

Peace be with you., Take care and God bless.

[so-cal-gal]

Originally Posted by tomser

Does lender disqualify loan mod If they see I have high 6 figure retirement fund ???

tomser

Put the paperwork into the shredder. Don't waste postage on this one.

We have already TOLD you they WILL deny you.

You can not claim a hardship. A fair number of these mortgage modification programs require a hardship statement. (I can not say if ALL require it.) A truthful hardship statement by you that you have the assets required to make the higher payment but just choose not to? That your 'income' from the retirement account is set at YOUR discretion and can easily cover the payment? That does not make a HARDSHIP.

If you don't like taking more out of your retirement account to pay the mortgage and the value is higher than the amount of the mortgage, THEN SELL the property. Otherwise, you may need to ride this out until the value goes up or your payment resets lower.

[faith]

Originally Posted by so-cal-gal

Put the paperwork into the shredder. Don't waste postage on this one.

We have already TOLD you they WILL deny you.

You can not claim a hardship. A fair number of these mortgage modification programs require a hardship statement. (I can not say if ALL require it.) A truthful hardship statement by you that you have the assets required to make the higher payment but just choose not to? That your 'income' from the retirement account is set at YOUR discretion and can easily cover the payment? That does not make a HARDSHIP.

If you don't like taking more out of your retirement account to pay the mortgage and the value is higher than the amount of the mortgage, THEN SELL the property. Otherwise, you may need to ride this out until the value goes up or your payment resets lower.

Calgal,
I beg to differ. Tomser has a sick wife who is in her senior years, probably 70 years old too. He only gets a social security retirement for $1700 a month and the only reason why he can afford to pay the mortgage payment is because he withdraw money and not receive monthly income.

We don't know what the lenders will do, it depends on the investor, they may accept it because of his situation with his wife and income and not worry about if they can manage to pay because they have assets they can use for emergency. I have experienced with the lender with the same situation. My lender did not accept my retirement income plus the stocks and 401k of about $210,000+ plus at the time. They told me they do not consider it as income because I do not receive a monthly income, it does not go to my checking or savings acct every month. but not an income. I was denied for having that money. So you don't know what the lenders will do.

Mr. Tomser, Sir, follow your heart, we can not tell you what to do because it is only you who can make this decision for you. It's only the lender who can make the decision if you qualify for Loan Modification or not. But you will not find out if you qualify if you don't try. If they deny, at least you try. You can always do a Short Sale and then buy another house that is affordable base on your income. Assets are only a plus, some lenders consider it income some don't, so please don't be discourage, try your best and focus on you and your wife. I pray for her speedy recovery. Trust that God will make a way for you and that everything will be fine with your wife and your situation.

We all care for you,your wife and your situation. Just don't worry so much. Try and try until you succeed.

Take care and God bless. Peace be with you.

[so-cal-gal]

Faith,

You are trying to give the guy FALSE hope. Your advise will only backlog the system with cases that should not be filed.

From what YOU are saying, he NEVER should have held onto this property with this mortgage once he retired. That is what should be evaluated well BEFORE you retire. He should have SOLD at the top of the housing bubble and moved to a senior retirement community that fit his SS income.

This particular situation, where he KNEW his income would diminish is NOT caused by the economy. It is caused by his lack of PLANNING. If the TRUE hardship cases get pushed aside so that every retiree can milk the system, this would be unfair to the rest of us. I have always been planning on how I would handle my debts after I retire, on my own. My need for a mod is thanks to the economy, not my total lack of planning.

Sorry to hear of the wife, but you guys both need to get REAL.

Even with the cancer case, his projected drop in income was reported to him every year before he retired. Social Security sends out that form. Medical bills force many seniors to dig into the retirement fund. You are told to 'spend-down' to the point that the government covers the costs.

If he DOES get any mod, it should NOT be thru the programs intended for HARDSHIPS which is the type of package he is referring to. He needs to talk to his lender about anything they will do for him. That is what is called an 'in-house' mod.

If they say no, SELL or take the funds from the retirement account each month.

One other option:If it is a house that would rent for more than you would pay to rent in a senior community and there is not a glut of vacant rentals in your area, then move to the senior community and rent the house out. You would be able to write off any cost associated with the house on your taxes once it is a rental and you could start taking depreciation also. Your basis would be the original cost paid for the house plus any significant improvements (not repairs) that you have put in since you bought. Frequently a 20 year straight-line depreciation is taken. That means, the original purchase price plus the improvements divided by 20. There should not be any income taxes to pay on the rental income from the house that way. Renting the house out could diminish the amount that you are pulling out of the retirement account each month.

But a hardship mod? PLEASE. They do not take medical bills into consideration when figuring your budget. Also, they normall DO look at the retirement account resources.

If you had one of the CW loans that the CA AG got the settlement regarding, those loans are supposed to have very streamlined qualifying. That would be the only chance at a 'hardship' loan mod that I know of. Even then, I question that they would allow 'retirement' to be the cause of the hardship which is BASICALLY what you are trying to justify here. They DO ask why you need the mod.

[faith]

Originally Posted by so-cal-gal

Faith,

You are trying to give the guy FALSE hope. Your advise will only backlog the system with cases that should not be filed.

From what YOU are saying, he NEVER should have held onto this property with this mortgage once he retired. That is what should be evaluated well BEFORE you retire. He should have SOLD at the top of the housing bubble and moved to a senior retirement community that fit his SS income.

This particular situation, where he KNEW his income would diminish is NOT caused by the economy. It is caused by his lack of PLANNING. If the TRUE hardship cases get pushed aside so that every retiree can milk the system, this would be unfair to the rest of us. I have always been planning on how I would handle my debts after I retire, on my own. My need for a mod is thanks to the economy, not my total lack of planning.

Sorry to hear of the wife, but you guys both need to get REAL.

Even with the cancer case, his projected drop in income was reported to him every year before he retired. Social Security sends out that form. Medical bills force many seniors to dig into the retirement fund. You are told to 'spend-down' to the point that the government covers the costs.

If he DOES get any mod, it should NOT be thru the programs intended for HARDSHIPS which is the type of package he is referring to. He needs to talk to his lender about anything they will do for him. That is what is called an 'in-house' mod.

If they say no, SELL or take the funds from the retirement account each month.

One other option:If it is a house that would rent for more than you would pay to rent in a senior community and there is not a glut of vacant rentals in your area, then move to the senior community and rent the house out. You would be able to write off any cost associated with the house on your taxes once it is a rental and you could start taking depreciation also. Your basis would be the original cost paid for the house plus any significant improvements (not repairs) that you have put in since you bought. Frequently a 20 year straight-line depreciation is taken. That means, the original purchase price plus the improvements divided by 20. There should not be any income taxes to pay on the rental income from the house that way. Renting the house out could diminish the amount that you are pulling out of the retirement account each month.

But a hardship mod? PLEASE. They do not take medical bills into consideration when figuring your budget. Also, they normall DO look at the retirement account resources.

If you had one of the CW loans that the CA AG got the settlement regarding, those loans are supposed to have very streamlined qualifying. That would be the only chance at a 'hardship' loan mod that I know of. Even then, I question that they would allow 'retirement' to be the cause of the hardship which is BASICALLY what you are trying to justify here. They DO ask why you need the mod.

Cal,
If a person is lost or confused and ask for directions even though he is driving a Mercedes Benz, and holding a map in his hands and ask me for help, I will be happy to help him. I will not tell him to look in his map that he is holding. He probably has cataracts and unable to see the map or doesn't know how to read the map like I do.

It is not up to YOU to decide to tell him not to send the application or not. That's Mr. Tomser's decision. It is the Lender's decision to decide to accept it or not. What I am trying to do here is to help that person who drives a Mercedes Benz with a map and help him. It is my nature to drive a peson to a hospital in the middle of the night because that person can not drive. It is my nature to stop on freeways and by ways when I see an old man and a woman stranded with their car stopped on freeways and give them a ride or money for food. It is my nature to give food to the hungry and it is my nature to help complete an application for a person who doesn't know what subjects to take so he or she can be registered to school. Helping someone who is asking for guidance is not a big deal and it gives them a little hop. You can call them false hope but it is a little rope that someone need in time of this crises. We are all created equal, all contributed to this crises in some way or another and we all fall short of the glory of God. Only God knows the motives of our heart.

You and I don't know if the lender will approve the loan mod or not. I know from my experienced I was denied due to having not enough monthly income and not allowed to use the retirement money that we have through stocks and 401k.

I have gotten thie information below from the website of HAMP regarding guidelines of hardship and home modifications.

What Counts as a Hardship?
A hardship can be anything that has affected your ability to make your mortgage payment. Some examples of hardships include: - Your interest rate jumped upward—Payment Shock - Illness (especially ongoing illness) - Reduced Income - Failed Business - Death in the family - Divorce - Medical Bills - Loss of a scholarship

Many other factors can be considered hardships. It is critical to the success of your request for a modification that your lender understands the hardship you are facing and the impact it is having on your ability or make your mortgage payment. Having the right advocate making this argument for you can be the difference between success and failure of your modification request.



New guidelines for loan modification:

Behind on Mortgage Payments,

In Foreclosure (Nod or Lis Pendens)

Has an ARM That Has Adjusted Higher or

Will Adjust Higher Within The Next Month or MAXIMUM Two Month

Has a legitimate hardship

Reduced income

Reduced hours

Pay cut at work

Loss of employment

On disability / worker's comp

Divorce / Separation

Excessive medical bills

Back taxes that are currently going paid back

Failed business

Thank you and God loves you.

[so-cal-gal]

Faith,

Maybe YOU want to be driving on a highway and get hit by the driver who is BLIND.

Your analogy is STUPID.

He STILL has the RESOURCES TO TAKE CARE OF THE MEDICAL BILL AND THE SHORTAGE.

He would be told by medicaid to 'spend down'.

Enough of your BLEEDING HEART on this forum.

He should not bother with the hardship mod app. The advice I gave was much more realistic than your baloney.

Faith, go volunteer where your time would be USEFUL instead of giving out non-sense 'HELP' here.

Your comments about helping a blind person drive are a perfect example of where your advice is flawed. You should have been offering to DRIVE the person and been trying to get them to SELL the car and never drive again.

Shish!

[jakelabry]

"He only gets a social security retirement for $1700 a month and the only reason why he can afford to pay the mortgage payment is because he withdraw money and not receive monthly income."

Excuse me, but we've been told for years that the entire purpose of a retirement account is to replace the income you lose by not working anymore - it's kind of why they tell you it should be equal to your last salary x the number of years you oexpect to live. So withdrawing money from said account to supplement social security income can hardly be considered a hardship - IMO. What else d you do with it - take it to your grave? It IS your income!

The initial point here is that Tomser has asked this same question three times in three separate threads. All we can give him is advice and opinions - which has also been done all three times. The only people who can provide the definitive answer to his question is the lender themselves and he won't know that answer until he submits the mod request.

Tomser - it does not matter in which thread or how many threads you ask this question, we can only give our opinions and now you have two. Faith says no and I say yes (for reasons stated in the other thread). GO ASK YOUR LENDER!!!

[faith]

Tomser,
There's nothing wrong than asking. Submit your applications and you will find out if the lender accepts it or not. I only said NO, they might not deny you because your lender may look at it to your advantage. Not in my case because I was denied for not having enough income and no matter how I plead with the Lender to consider my retirement income stocks, 401k etc to be my income, they said to me that my 401k and stocks are not considered income because I don't receive it as my monthly income.
I've tried another lender and they approved it and regret it until now because when I had a car accident and became disabled for too long, the guy that hit me didn't have insurance and I have used all my 401k and stocks and retirement income to pay my mortgage payments since 2005 through 2007. taxes, bills etc. I have sold my house via Short Sale, thanked God for this forum that Moe and others gave me how to handle Short Sale. At least I don't have to worry about mortgage payments but I don't have anymore money, stocks and 401k everything is gone.

I feel for your pain and your worry especially that your wife is sick, you need something for emergency. Maybe you should consider selling your house via Short Sale and negotiate with your lender to settle the balance by paying it down say 5% to 10% of the balance owed, payable in 10-30 years with no interest. Maybe ask for a refinance and also negotiate the balance owed by paying it down 5% to 10%.

Please forgive us us for our responsed to your thread, we do care, Cal and Jake and me and others, we just react different way but we do want to help you. How I wish this is simple and there's an immediate solution to your concern. The reality is with God's permission, He can direct the right lender and people to help you. Please help yourself by calling your Lender like all of us is suggesting. If you ask them, they will you an answer.

Mr. Tomser it's an honor knowing and serving you. Thank you for your questions.

Cal and Jake thank you and God bless you.

Peace be with you.

[so-cal-gal]

He should also check into converting the house into a rental like I suggested.

Also, others are 'doubling' up with friends and family members, sharing a house to pool the income.

Maybe you have a spare bedroom you could rent out to help make the payments. Be careful of who you take in but if they are responsible friends or family members who would want to move in with you, that could be the answer.

[daviddaniels]

you may not need to send that retirement account statement to the bank at all. Your tax returns will clearly state how much you collect from retirement and social security every year which will then get broken down monthly. Alot of retirement accounts are not considered liquid. Really depends on the retirement account. was it from work or was it personal? these things can play a factor. Otherwise, send in your tax returns, your awards letter from social security and a copy of the check or direct deposit from the retirement account and go from there. Bank statements will also show these as deposits as well. I mean after all, you do get 1099'd or w2'd on that money you draw from at the end of the year right? try that and see what happens. It really is only my opinion but in my experience, thats how we do it and it hasnt failed yet. Not that it will never just that it hasnt.

[tomser]

Originally Posted by daviddaniels

you may not need to send that retirement account statement to the bank at all. Your tax returns will clearly state how much you collect from retirement and social security every year which will then get broken down monthly. Alot of retirement accounts are not considered liquid. Really depends on the retirement account. was it from work or was it personal? these things can play a factor. Otherwise, send in your tax returns, your awards letter from social security and a copy of the check or direct deposit from the retirement account and go from there. Bank statements will also show these as deposits as well. I mean after all, you do get 1099'd or w2'd on that money you draw from at the end of the year right? try that and see what happens. It really is only my opinion but in my experience, thats how we do it and it hasnt failed yet. Not that it will never just that it hasnt.

thank you very much

here is my situation , the retiremnet account is personal not from my previous company .It is comprised of stock ,bond and mutual funds at the Vangurad Mutual fund Company. They gave me check so i can withdraw enought agianst my funds so i can pay my monthly mortgage payment along with my social security check. there is no restriction withdrawing money. When I take out money they just sell bond to my money market.

here is bottome line of course i can pay the new higher payment then my retiremennt fund will be depleted just quickly and nothing left over and i have to go out to street to sleep

I just wonder there may be a lot of people like my sisuation paying from retiremne fund and i like to know how thet handle this situation

you seems you are one person knows this situations I guess i have to send tax returen to my lender ihavent filed tax yet because i dont owe tax

I appreciate your input

tomser

[Hard Times]

Tomser........This advice will cost you----you can send me check or money order.

Have you ever considered a new style "reverse mortgage"? I assume you are at least 62 years old, right? There is a new company in Ca that offers reverse mortgages, and they only will deduct from the "future appreciation" of your home. So, you will start getting monthly checks while you live in your home. The appraised value now should be what your heirs will get at that time in the future. However, any appreciation in your property will be taken back by this company.

Have you considered a reverse mortgage?

[so-cal-gal]

Originally Posted by Hard Times

Tomser........This advice will cost you----you can send me check or money order.

Have you ever considered a new style "reverse mortgage"? I assume you are at least 62 years old, right? There is a new company in Ca that offers reverse mortgages, and they only will deduct from the "future appreciation" of your home. So, you will start getting monthly checks while you live in your home. The appraised value now should be what your heirs will get at that time in the future. However, any appreciation in your property will be taken back by this company.

Have you considered a reverse mortgage?

My attorney happened to tell me a story about one of these reverse mortgages. He said the gal would have been better off to have done just about ANYTHING OTHER than take a reverse mortgage. They racked up the interest against the property so quickly that it was ridiculous. Very high rates were charged. They had the loan up to more than the house was worth in NO time.

Even though I was not asking about any such device or strategy, he was so frustrated by another (unnamed) case that he was wanting to get the word out that reverse mortgages ARE A WASTE.

Don't do it! Consider this product as worse than a last resort unless a financial wizzard you trust can convince you.

[faith]

Originally Posted by so-cal-gal

My attorney happened to tell me a story about one of these reverse mortgages. He said the gal would have been better off to have done just about ANYTHING OTHER than take a reverse mortgage. They racked up the interest against the property so quickly that it was ridiculous. Very high rates were charged. They had the loan up to more than the house was worth in NO time.

Even though I was not asking about any such device or strategy, he was so frustrated by another (unnamed) case that he was wanting to get the word out that reverse mortgages ARE A WASTE.

Don't do it! Consider this product as worse than a last resort unless a financial wizzard you trust can convince you.

Hello,
I agree with So Cal. I've seen a lot of people who are over 62 years old and took reverse mortgage but nobody really explained how this thing works. I've seen them on TV they were asking for help with Turko File one of the TV stations here in San Diego. Their brokers lied to them and they lost their home and all their money after taking this reverse mortgage. Please do not do it, this is very dangerous and one of those schemes for people who are over 62 years and above.

I agree with you there's no sense of making payments using your retirement money that you save for your retirement. You have to think of you and your spouse.

Did you mail the Loan Modification papers and see if the lender will approve you for Loan Modification.? Have you consider selling the house and then rent a condo and then buy another house after 2 years?
It's just something to ponder.

I wish you the best, This is for your information only.

Thanks and God bless.

[jakelabry]

Faith, please explain to me what you think the purpose of a retirement fund is? Because I always thought it was to pay your living expenses once you retire and are no longer earning an income. Tomser is retired and housing is a living expense. His retirement account is his income and he can be expected to use some portion of that to pay for his housing.

[faith]

Originally Posted by jakelabry

Faith, please explain to me what you think the purpose of a retirement fund is? Because I always thought it was to pay your living expenses once you retire and are no longer earning an income. Tomser is retired and housing is a living expense. His retirement account is his income and he can be expected to use some portion of that to pay for his housing.

Hello Jakelabry,
I agree and disagree with you. Retirement is something you can depend when crisis comes like illnesses, death, and other emergencies. You probably don't expect to outlast your financial assets in retirement. But many Americans could see their money dry up before retirement ends or after retiring due to lifestyles, spending habits and high cost of living.

Nowadays you have to know how to manage your investment account and savings and know how to stretch your retirement income. You have to be realistic about what you can afford. I don’t think withdrawing money from your retirement account so you can keep your house for 12 months and then end up losing the money you’ve worked hard for too long. What happens if the money is gone and you can no longer afford to pay for the house you are trying to keep then what? Strategy is the best exit. Planning is the effective way of doing it.

The most important thing to do is to make sure that you can afford the house and have retirement savings left in case of emergency. You have to stay healthy. Eating fruits and vegetables and exercise at least 30 minutes to 1 hour a day. Walking is the best exercise. I exercise 4 hours a day and eat non fatty food, fruits and vegetables, no sweets, watch my carbs and calories. I have to say that I lost 17 lbs in less than 3 months by walking and eating the right food. Why? I don't have medical insurance, Kaiser denied my insurance coverage due to having cataracts. Both my husband and I retired and also depend on our retirement income

Out-of-pocket medical expenses can eat away at your assets or income significantly as you get older. You need to be wise in spending your money once you are retired because no one can help you but you. We can not depend on our government, especially now that Obama is so in tuned to His Healthcare Plan, it seemed that he is in Lala land, the land of fantasy. Somebody needs to pinch him and wake him up. The HOMEOWNERS IS THIS NATION'S NUMBER ONE PRIORITY.

As a rule of thumb, some experts say that you can expect to live on 80 percent of your retirement income. But if you want to live more extravagantly, you'll need more. So your first step is to figure out how much money you'll need each month to pay your expenses. Analyzing your cash flow to give you that baseline of how much money you need, If you don't have a baseline there's no way you can make rational decisions.

You don’t want to have monthly expenses of $5,000 a month when you only receive a $1700 a month in your retirement income. You'll need to either cut back or come up with another $3,300 per month to be able to afford for that monthly expenses. If you must tap investment assets for the difference, you'd better make sure you have enough to last you for many years at that level. Hong long is many years, probably 10, 20, 30, 100 years?

Always assess and reassess to make sure you have enough income to cover inflation for a 30-year retirement. It’s like checking your checking accounts to make sure that you do not have insufficient funds.

Thank you and take care. >>

[so-cal-gal]

Originally Posted by jakelabry

Faith, please explain to me what you think the purpose of a retirement fund is? Because I always thought it was to pay your living expenses once you retire and are no longer earning an income. Tomser is retired and housing is a living expense. His retirement account is his income and he can be expected to use some portion of that to pay for his housing.

It appears the only 'fair' look at the retirement fund would be to look from an actuarial perspective. I believe that tomser has mentioned a spouse? Looking up the projected lifespan for whichever partner will live the longest in the actuarial tables should be done. Then, using advice from a CPA, a 'reasonable' amount to withdraw per year could be calculated, using that 'projection' and 'reasonable' gains to the account from whatever investments the sum is invested in. Using THAT figure plus the social security would be the 'reasonable' way to figure what tomser should have to plan on contributing to a total monthy budget.

If the REAL payments do not 'work' with this actuarial approach, they will need to EITHER get the loan modified to the point that it DOES or else they need to plan how long they can 'feed' the mortgage monster from the fund and wait for a time to sell, or else get out of that house NOW.

If this approach shows that you really need to get that loan modified but the lenders refuses, you are going to have to decide between 'feeding' until the market possibly improves versus getting out of the house NOW.

---------------
If there is a way to handle the mortgage payments and stay put, there are two eventual scenarios:

If the house gets paid off before they reach that expected life-span used to figure the contribution, they would have no further worries as long as they kept sufficient medical insurance.

If one or both should outlive that lifespan without the house being paid off, prior to completely exhausting the remaining funds, hopefully the market will have improved sufficiently that sale of the house and moving to a senior center with reduced costs would be the final strategy. Who knows, that may be long enough off that the house would even be paid off.

[Hard Times]

Tomser....the reverse mortgage I am referring to is a new type, and definately worth you looking into. If you are interested, I can did up the financial info. I received regarding it.....as I recall, only one company has initiated this new type.

[faith]

Tomser,
You still have to be very careful nowadays, you don't know which one is scam or not. Most victims of the reverse mortgage are seniors because they are very easy target. Take a trusted friend or family and ask yourself a lot of questions and research about it before you do this. Research, ask questions and if you are in doubt don't do it. The key question is why and what's their goal, how much they charge, look for small prints and hidden agenda. Don't talk to strangers my mother used to say, extra careful.

[jakelabry]

Look guys, a reverse mortgage is a non-issue in this case. The man owns three properties and all are underwater. A reverse mortgage requires that you have substantial equity - it is really intended for seniors that have paid off their homes to give them an income based on the value of that paid off house.

Tomser, NOBODY can answer this question you keep asking but the lender you are requesting the modification from. And I believe they gave you the answer when they requested information regarding your retirement account(s). If you don't give it to them they will dismiss your application altogether. Provide it to them and maybe they will give you a modification based on the income you receive from that account and not the account itself.

[so-cal-gal]

Originally Posted by jakelabry

Look guys, a reverse mortgage is a non-issue in this case. The man owns three properties and all are underwater. A reverse mortgage requires that you have substantial equity - it is really intended for seniors that have paid off their homes to give them an income based on the value of that paid off house.

Tomser, NOBODY can answer this question you keep asking but the lender you are requesting the modification from. And I believe they gave you the answer when they requested information regarding your retirement account(s). If you don't give it to them they will dismiss your application altogether. Provide it to them and maybe they will give you a modification based on the income you receive from that account and not the account itself.

I agree, Tomser needs to go ahead an give them the info they requested so that MAYBE he can get this home loan modified. This modification application will be canceled without it.

Did you list the retirement account when you originally applied for the mortgage? Most mortgage applications request all information on investments and show your entire net worth. If you did, they already KNOW that there is a sizable retirement account. They DO still have access to those documents too.

I believe they should take the actuarial view of the account if they are 'smart'.

They need to have an idea of a 'reasonable' payment that should be expected of Tomser. If the goal that you have for the modification request is to have the mortgage payment be less than the Social Security, I doubt that is going to be granted. Maybe they will prove me wrong, but the retirement account is intended be the source that replaces income that is reduced by retirement.

And Jakelabry, you are on the mark with an additional reason the reverse mortgage advise is a non-starter.

These reverse mortgages will only be targeting 'paid-off' properties, or ones that are nearly so. But what my attorney discovered about those products was that you do NOT end up with anything NEAR the 'fair' market value. Anyone pushing them should have to take their own advise.

[faith]

Originally Posted by so-cal-gal

I agree, Tomser needs to go ahead an give them the info they requested so that MAYBE he can get this home loan modified. This modification application will be canceled without it.

Did you list the retirement account when you originally applied for the mortgage? Most mortgage applications request all information on investments and show your entire net worth. If you did, they already KNOW that there is a sizable retirement account. They DO still have access to those documents too.

I believe they should take the actuarial view of the account if they are 'smart'.

They need to have an idea of a 'reasonable' payment that should be expected of Tomser. If the goal that you have for the modification request is to have the mortgage payment be less than the Social Security, I doubt that is going to be granted. Maybe they will prove me wrong, but the retirement account is intended be the source that replaces income that is reduced by retirement.

And Jakelabry, you are on the mark with an additional reason the reverse mortgage advise is a non-starter.

These reverse mortgages will only be targeting 'paid-off' properties, or ones that are nearly so. But what my attorney discovered about those products was that you do NOT end up with anything NEAR the 'fair' market value. Anyone pushing them should have to take their own advise.

Tomser,
I agree with So Cal and Jake. As 'Reverse' Loans Grow More Popular, Scams Put Older Adults at Risk, see the link below, it is a new mortgage scam:

The Latest Twists on Mortgage Fraud - WSJ.com

[Hard Times]

Jackleberrie......Ok...thanks for the clarification. I had no clue that tomser owned 3 properties. If so, I dont think he can apply for a HAMP. He has assests......he needs to sell the two properties and just keep his primary residence.

I had assumed for some reason that he was over 62, and had a good size retirement account, and his primary home had alot of equity. In my opinion, he is not a hardship case.....he has assets which he should dispose of if he doesnt want to use his retirement funds to pay for them.