Chase/ Wamu loan on 2 properties Help!

[Haduken]

Hello and first of all thank you for your future help and I hope that this can help others as well.

My father is the primary and I am a co-borrower. The loan is a negative amortization and started off at 420k and now has increased to 459k. The loan is issued by Wells Fargo. The monthly is about 1,900 a month and will balloon to about 2600 in October.

My parents decided to buy another home which we would all live in and use the first house as a rental property and we created an LLC for taxes purpose for the first house. The second house (we are living at) has my mother as the primary and I am the co- borrower. The first loan is about 759k and the second is at 89k. The monthly payment is about 3900 for the first and 600 for the 2nd.

My dad and I combine make about 9k a month (first house). My mother and I make approximately 16k together (before taxes) I will confirm.

We are now 2 months delinquent, due to our inability to pay and some hardships which we are experiencing. Also it was advised to us by our lawyer that the banks will not listen until this happens. We have been in contact with our banks because they have been sending us letters as well.

My questions:
1- If the bank denies us due to lack of paperwork, (utilities) can we send in the utilities bills and they can reconsider or start back and take a look at the papers or if they deny us, does it mean we can not reapply?
2- The lawyer stated that they saw some illegal practices that were done by both banks. Is this a legitimate way to have our loans modified?
3- Was a lawyer necessary to hire? Do they make the loan mod process easier or is there more of a chance of it being approved?
4- What is the chance of us actually being approved for both loan mods?

I apologize for being so detailed. Thank you for your time and please let me know if I can be a little bit clearer.

Thanks
Haduken

[Moe Bedard]

Hello and thanks for joining the community.

My questions:
1- If the bank denies us due to lack of paperwork, (utilities) can we send in the utilities bills and they can reconsider or start back and take a look at the papers or if they deny us, does it mean we can not reapply?

Yes. But be very careful not to make any false or inconsistent statements. Sometimes homeowners are denied because they are not consistent with their incomes and stories. Just have a plan and stick to it.

2- The lawyer stated that they saw some illegal practices that were done by both banks. Is this a legitimate way to have our loans modified?

Yes. Depends on the legal violations made and the type of mortgage.

3- Was a lawyer necessary to hire? Do they make the loan mod process easier or is there more of a chance of it being approved?

They can make it easier and especially for people such as yourself because of the multiple properties and complicated income. The questions is ,"do they know what they are doing?"

4- What is the chance of us actually being approved for both loan mods?

Can't really say without seeing your whole situation. Your lawyer should hopefully answer this for you once they have all your info.

I apologize for being so detailed. Thank you for your time and please let me know if I can be a little bit clearer.

No problem. We are more of a guide type forum and can only help so much. You can get detailed, a lot more detailed and I would really need that to give you an honest opinion on yes or no. Your financials are going to be the big issue because you have good income and they will see that.

[Haduken]

Moe, first of all, let me say this is a great site... honestly... So Thank you,

What details would you need from me to clear up my questions?

I was also reading on other people's situation, that they foresaw huge troubles ahead and decided to get a loan modification before they no longer had any money to their name. Is that a good idea to do?

One of the qualifications for a loan mod was that the loan had to be 729k or lower. Does that mean me and my parents no longer qualify?

I am not really responsible for paying the house, however since I am the co-borrower on both properties, how bad will my credit score get hit? Can you estimate that? Currently I believe I had a credit score of 750.

Moe, again... great website. Thank you,
Haduken

[art4ari]

i am also a coborrower for another property. I am on a trial on mine and the other one has ben modified thru my partner as the principal with BK etc.. I wonder if will affect my mod. I know only one property can be done. any thoughts? thanks

[Haduken]

How can a property be modified if he already filed for bk? (bk = bankrupt?)

[Moe Bedard]

Originally Posted by Haduken

Moe, first of all, let me say this is a great site... honestly... So Thank you,

Thanks so much Haduken!!

What details would you need from me to clear up my questions?

In a situation such as yours, you would have to full analyze your income and expenses, taxes, etc. You do not have a cookie cutter type situations and we just cant do that here.

I was also reading on other people's situation, that they foresaw huge troubles ahead and decided to get a loan modification before they no longer had any money to their name. Is that a good idea to do?

Possibly yes. If you see that later you may be in worse trouble, then basically you are putting a band aid on an open wound that may not cure. But at least your buying some more time per say.

One of the qualifications for a loan mod was that the loan had to be 729k or lower. Does that mean me and my parents no longer qualify?

No. The $729k is just for the Obama Making Home Affordable plan.

I am not really responsible for paying the house, however since I am the co-borrower on both properties, how bad will my credit score get hit? Can you estimate that? Currently I believe I had a credit score of 750.

To the best of my knowledge, you will get hit the same as if your were the primary and depends on how delinquent you become. A foreclosure may drop your score 200-300 points. The lowest score is 340.

I hope that helps Haduken and I wish you the best!