Just starting mod- will I even qualify ?

[seabell]

Can anyone tell me my chances on this?
home worth: $685,000 -b of a website (cybervalues)
1st mort- $399,000 Chase
2nd heloc $250,000 BofA
LTV 95% ?
payments are interest only 1st 6.25% 2080.00
second int only 2.49% 528.00
prop tax 600.00
ins 125.00

self employment income has dropped to 3200.00 per month! Is there any hope here or not? It seems like I need a principal reduction, plus 2% interest for 40 years, with the first 3 years int only. Is this even likely????

Any advice appreciated. Thanks!

[AACPA]

My understanding is that Chase is not doing any principle reductions whatsoever. Also, since you are self-employed expect to be put through the ringer with Chase. Several of us board members who are self-employed are getting one denial after another as Chase fights to deny our mod requests. Chase seems to think that if you are self-employed you are hiding assets and inflating expenses to try and qualify for the modification, at least that is what is happening in my case. First they denied me for "insufficient income" so I resubmitted my file and told them they made that decision in error because they didn't look at my current P&L's which showed an increase in income from the time I had first applied back in April. The customer service rep. accused me of manipulating my P&L's and then the underwriter disallowed employee expenses saying they were too high even though my employees are only making $8.50-$11 an hr. and then denied me for "no hardship". There are other horror stories on the Chase forum by other self-employed members being treated the same way.

My advice is to go through NACA at NACA.com. They are a non-profit that will advocate for you for free. I'm going through NACA now because my attempts at doing the mod myself have been unsuccesful and have been met with nothing but resistance from Chase.

I can't give you any advice on your numbers, but I'm sure more experienced board members will be by to give you advice on that. Good luck to you and keep us updated.

[chasepmt2hot-firefighter]

AACAPA

Can you direct me to any stories for self-employed? I have a few saved, but would like more. I want this to be as easy as possible for them to cross reference and follow. It's very complicated to me on a daily basis and I live and breathe it. NACA can't help as we have rental properties. Anyone in construction and/or with rental properties would be great. I just want to redo what I do have for it to be easier on all of us. I want this over so bad...

[jakelabry]

You have equity in your home. No bank is going to write down principle on a loan that you are not underwater on - they might as well just give you cash! People who are hundreds of thousands of dollars underwater (owe more than house is worth) can't get principle reductions. Also, almost all modifications require fully amortized payments - principle, interest, taxes, insurance, and sometimes HOA fees. So, yes - you have an extremely uphill battle. If your income doesn't or won't increase, can you sell the house? By all means, contact NACA and see what they say. I would say have a Plan B, though.