My Loan Mod UPDATE: Also DENIED!!

[AACPA]

Called today to get my weekly update and found out that my loan mod application was denied due to "insufficient income". What really gets me is that if I made $5400 a month in income than my current PTI would equal 31% of my income. I make about $4200 a month so would someone please tell me how Chase can tell me I have insufficient income for a modification under HAMP? If they reduced my interest to 2% and extended my loan 40 years than my monthly income would only have to be $3700 to meet the payment so how can I NOT qualify when I make more than that???? If I made any more than what I am already making than I wouldn't need a loan mod to begin with!!!! None of this makes any sense. Sure, the banks are now going to start hurrying up with the decisions now that Obama is on their backs and the way they are going to do that is by telling everyone that they don't qualify!!!

[MAXIE19]

AACPA:

Did they tell you how much they want you to make inorder to qualify? Where did you get the $5400 figure from. The rep I spoke today was unable to provide me with any details about what went into the determination of insufficient income.

[minknmelissa]

AACPA i KNOw i am going through the same with similar numbers and that is my whole feeling its not really for people who really really could benefit i think they consider us more of a risk Did they tell you how much you were off they wouldn't tell me

[AACPA]

No they wouldn't tell me anything. Just told me to reapply if I could show more income but wouldn't tell me how much more I need to show. It could be $100 or $1000 I have no idea.

[minknmelissa]

what i was told was if your income is below 5000 but over 2500 they want your debt to income ratio to be 34% over 5000 they want it to be 38% below 2500 31%, mind you that was coming from someone who told me three different reasons in one phone call as to why I didn't qualify switching everytime i had and answer. They lie alot at least the people i deal well i'll say maybe they don't know the product. That is when they do the modification basically someone who make 4100 a month they wouldn't to be over 34%. Well I'll see when the negotiator callls me back

[snapple candy]

I read an article a few days ago that some pushing being done to make lenders tell you exactly why they are denying you. Right now there are no laws that require them to disclose it. Until there is, we are at their mercy. You better believe their attorney's working overtime to find the loopholes.
I dont understand the debt to income ratio all that clearly and from what I have experienced doesnt impact the mortgage payment determination. Perhaps now that it is time for the rubber to meet the road on final mods, they are starting to look at all these issues closer. Keep in mind it has taken them months to come up to speed with processing trial mod plans. Now that a bunch are coming to finality, I suspect the same is happening for how to process perm. mods. The percentage of qualified, educated closers for these lenders has got to be few and far between. AACPA, with that much income, I cant for the life of me figure how that equates to, to little income. How much underwater are you? I am wondering if that plays a factor in it as well. Recent articles lead to mods being allowed only where home is only up to 25% of total value underwater. I am getting ready to make my 3rd trial payment and my income about $3300-$3500 mth tops. Im 100K under water. We'll see. It appears we are all in the same boat. At their mercy.

[Hodgini66]

Do you have other debts you are servicing? Car loans? Etc.?

[shade]

Snapple your wrong - the HAMP guidelines specifically state that if you are denied it is to be in writing.
I have searched tirelessly through all the documents put forth by the government on the HAMP program and the most important docs are listed in my other thread

MHA documentation

There are links to click on and it will take you to the documentation put forth on the plans in detail.
The guidelines state that a person is to be denied 2 MONTHS BEFORE the END of the trial period NOT after the payments have been made.
Of course this isnt happening.
Raise hell!!
The guidelines do not state that anyone with DTI of X doesnt qualify. Only rules state that if you are over 55% you need to sign a doc that says you will obtain HUD counseling and that signature will allow you to get the permanent mod.

[snapple candy]

Shade,
What they do and what they are supposed to do are two different things. I am glad that your are keeping track of these things so when they deny us for bs reasons, we have guidelines to hold their feet to the fire on. According to the articles I have been reading, this is an issue many are complaining to their senators about.
I am getting ready to make my 3rd trial payment. I appreciate you keeping on top of these things since after a year I have grown tired. I am ready to walk away.
Snapple

[shade]

Agreed they arent doing what is required but complaining has brought the issue to the front instead of letting them get away with it. Continue to write the treasury, freddie and fannie as the are the HAMP administrators and are now monitoring the banks participation.
Dont walk away. The guidelines need to be followed and once my 3rd payment comes due if they try to give me any crap i will point to the guidelines and kindly let them know my attorney will be on their ass for a permanent mod and expenses incurred.

[willywonka]

AACPA , I was just wondering if you were on the making homes affordable trial payment modification plan . I just received mine last week , payments are due 8/1 , 9/1 , 10/1 and 11/1 .

[AACPA]

Originally Posted by willywonka

AACPA , I was just wondering if you were on the making homes affordable trial payment modification plan . I just received mine last week , payments are due 8/1 , 9/1 , 10/1 and 11/1 .

No, I was denied due to insufficient income and had to resubmitt my application. I have yet to be offered trial payments.

[peggyinfl]

This was just on the West Palm Beach News that a family was just forclosed on and has 24 hrs to move out. The went throught the trial payments for a loan Mod through Chase, they recieved forclosure notice while on the trial, they called Chase and Chase said they would put a stop on it. When the Sheriff served them today the papers said that they were denied a loan mod. UNBELIEVABLE!!!!

[kenman]

WillyWonka

We must have got our paperwork about the same time. I received mine on 7-29 and they wanted first payment by 8-1.

I willl be damned if I was going to pay to o'nite the payment to them, so I just sent it through regular mail on 8-4.

After 7 months of putting up with the BS from Chase I figured they could play by my rules for once.

Keep me posted on your progress.

Kenman