Front End DTI Ratio <31% - Loan Modification Forum

OH-WAMU · 08-12-2009, 10:49 AM

If your Front End DTI Ratio is <31%, are you ineligble for ALL Loan Modification Programs? Would we be eligible for Chase in-house programs?

Example:

$53,000 Gross Income/12 mo. = $4,461 * .31 = $1,369

Our mortgage payment is $869 (PTI & Flood Ins. included) and we struggle with that.

We have had this income since 3/2009. We have three 401k loans we took out 3 years ago (various times) to keep the home out of foreclosure until my income grew. These loans limit our Net pay.

FHA Loan
No car debt. (1 car >100,000 miles, 1 car > 210,000 miles)
$1,000 CC debt.
$6,000 Medical bills
Unusual commute costs (90 miles/work day) Variable, depends on gas prices. (Summer 2008 killed us!)
Loan Amount = $92,000
Owe approx. $82,000
Worth = $60,000 (Estimated, based on Comp sold down street)
4 months behind and have been behind for a long time.

Do we look unreasonable?

We can afford the payment now, but can't see where to get caught up? Forebearence might help, but not the increased payment once Forebearance period is over. A Loan Modification or even Refinance would really release pressure all around.

OH-WAMU

Evan Bedard · 08-12-2009, 11:29 AM

Hi OH-WAMU,

In your case I would suggest that you go for a forbearance to get caught up on your payments. Explain to your lender that you just need assistance getting caught up with your mortgage. I have seen many forbearances that lowered your payment a significant amount for 3-6 months..

OH-WAMU · 08-12-2009, 11:58 AM

I thought most forbearances have an increased payment over the course of several months. We can pay $869/mo. but if they want to tag on 4 months worth of back payments, fees, etc over the course of 6 months (estimated ($1,000/mo.*4)/6 months), THAT'S LIKE AN ADDITIONAL $670/mo. to get caught back up!

How long are typical Forebearances? I think I might need a Partial Claim from FHA or something.

Evan Bedard · 08-12-2009, 12:26 PM

True some forbearances have an increased payment, but I have seen many with a payment "cut in half" at a period of 3-6 months and also take the 4 months and add that amount to the back of the loan...

08-12-2009, 10:49 AM	#1 (permalink)
OH-WAMU Senior Member Join Date: Jul 2009 Location: Ohio Posts: 86 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Front End DTI Ratio <31% If your Front End DTI Ratio is <31%, are you ineligble for ALL Loan Modification Programs? Would we be eligible for Chase in-house programs? Example: $53,000 Gross Income/12 mo. = $4,461 * .31 = $1,369 Our mortgage payment is $869 (PTI & Flood Ins. included) and we struggle with that. We have had this income since 3/2009. We have three 401k loans we took out 3 years ago (various times) to keep the home out of foreclosure until my income grew. These loans limit our Net pay. FHA Loan No car debt. (1 car >100,000 miles, 1 car > 210,000 miles) $1,000 CC debt. $6,000 Medical bills Unusual commute costs (90 miles/work day) Variable, depends on gas prices. (Summer 2008 killed us!) Loan Amount = $92,000 Owe approx. $82,000 Worth = $60,000 (Estimated, based on Comp sold down street) 4 months behind and have been behind for a long time. Do we look unreasonable? We can afford the payment now, but can't see where to get caught up? Forebearence might help, but not the increased payment once Forebearance period is over. A Loan Modification or even Refinance would really release pressure all around. OH-WAMU

08-12-2009, 11:29 AM	#2 (permalink)
Evan Bedard LoanSafe.org Homeowner Guide Join Date: Aug 2007 Location: Southern California Posts: 2,168 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Front End DTI Ratio <31% Hi OH-WAMU, In your case I would suggest that you go for a forbearance to get caught up on your payments. Explain to your lender that you just need assistance getting caught up with your mortgage. I have seen many forbearances that lowered your payment a significant amount for 3-6 months.. __________________ Keep Fighting! Evan Bedard LoanSafe.org Support Team Please donate via paypal to LoanSafe.org to help keep this forum going The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

08-12-2009, 11:58 AM	#3 (permalink)
OH-WAMU Senior Member Join Date: Jul 2009 Location: Ohio Posts: 86 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Front End DTI Ratio <31% I thought most forbearances have an increased payment over the course of several months. We can pay $869/mo. but if they want to tag on 4 months worth of back payments, fees, etc over the course of 6 months (estimated ($1,000/mo.*4)/6 months), THAT'S LIKE AN ADDITIONAL $670/mo. to get caught back up! How long are typical Forebearances? I think I might need a Partial Claim from FHA or something.

08-12-2009, 12:26 PM	#4 (permalink)
Evan Bedard LoanSafe.org Homeowner Guide Join Date: Aug 2007 Location: Southern California Posts: 2,168 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Front End DTI Ratio <31% True some forbearances have an increased payment, but I have seen many with a payment "cut in half" at a period of 3-6 months and also take the 4 months and add that amount to the back of the loan... __________________ Keep Fighting! Evan Bedard LoanSafe.org Support Team Please donate via paypal to LoanSafe.org to help keep this forum going The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

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