Can you have any assets?

[seabell]

With a Chase Modification, will they turn you down if you have any savings?
Retirement? annutiies? Is there a formula or ceiling on how much you can have?

[Moe Bedard]

You can't have too much assets and if your current it will be rough.

Lets say you are 90 days late on your mortgage and it is $2,000 a month. You also have a savings with $8,000. Then you go for a loan modification and disclose this, you then may have to come up with that 90 days back monies plus fees.

You can have assets sure, tbut they will want them if you owe them.

Lets say you're current and have $8k savings and...please stop me now because most likely you will be denied. I have seen it many times.

[peppy]

What if you are current and your mortgage is not escrowed and the money that you have in savings is your own way of saving for the taxes and insurance. I am current and I have $8k in savings, but that 8k is not even enough to pay my property taxes, let alone my insurance. Do you think I will get an automatic denial for having money in savings?
I have been in a holding pattern since March, they keep saying try back in a few weeks, since I am current, but no denial yet.

[azdmsmith]

If you are current, this is what the HAMP guidelines say about cash reserves (this is from FannieMae, I believe Freddie Mac and others are very similar so I think it’s a good guide).
The servicer must make a determination of whether the borrower satisfies the following imminent default screen:

The borrower’s cash reserves are less than three times the current monthly mortgage payment, including tax and insurance payments (using estimated payments if the mortgage loan is not currently escrowed). Cash reserves are liquid assets the borrower has available for withdrawal from any financial institution or brokerage firm, including checking and savings accounts, certificates of deposit (even if held for an extended time), mutual funds, money market funds, stocks or bonds.

I was initially denied because my cash reserves were too high, but my mortgage payment hadn’t cleared yet when my bank statements closed and once it did I was fine and eventually approved for a trial mod.

Good luck.

[azdmsmith]

Also, I believe retirement funds are excluded. This is what the guidelines say about determining hardship. Although the two different standards aren’t explained well (3 mths debt vs. 3 mths mortgage payment), I believe this info applies to all borrowers whether current or in default vs. the info above which is more stringent for current borrowers.

A lack of sufficient cash reserves to maintain payment on the mortgage loan and cover basic living expenses at the same time. Cash reserves include assets such as cash, savings, money market funds, marketable stocks or bonds (excluding retirement accounts and assets that serve as an emergency fund – generally equal to three times the borrower’s monthly debt payments). >>

[peppy]

Thanks for the info, Azdsmith

Unfortunately, my 8k will not pay my 1st mortgage for three months, so that is probably why I have not gotten an immediate denial.

Azdmsmith, Is your mod offically permenant yet? Congrats on getting this far.

[azdmsmith]

Thanks. My trial period is just starting 9/1. Like you I had been at it since March. It is a very tough and frustrating battle, but there are a few of us here who got started on trial periods while remaining current.

[shade]

I am not suggesting you lie but if you have extensive amounts in checking/savings I would withdraw and place under your mattress (or some other safe spot)

[seabell]

Ok, so if my 1st is 2080 + second 528 + un-escrowed taxes 600 + un-escrowed ins 125 = aprox 3300, so about 9,000 would be OK/????

Annuity non qual- restricted until 59-1/2 would be considered retirement???

What about paying off other debts from savings????s it allowed ?? cars, etc
pay back family members who have helped you in the past ???

I would assume the bank would scrutinize a recent large withdrawl from a savings that was not paying a bill or a note off, correct???

[Frustrated069]

Shade,

If you withdraw a good amount of money from savings,checking would they find out about it? There will be a trace of withdrawals if they ask for bank statements.

[jakelabry]

Originally Posted by seabell

Ok, so if my 1st is 2080 + second 528 + un-escrowed taxes 600 + un-escrowed ins 125 = aprox 3300, so about 9,000 would be OK/????

Annuity non qual- restricted until 59-1/2 would be considered retirement???

What about paying off other debts from savings????s it allowed ?? cars, etc
pay back family members who have helped you in the past ???

I would assume the bank would scrutinize a recent large withdrawl from a savings that was not paying a bill or a note off, correct???

Reality check - you say you are self-employed, correct? They will ask you for bank statements and if they see you moving around large amounts of money they will ask questions. From their perspective, if you use available cash to pay everybody but them it doesn't bode well for your chances of success. They also pull credit reports to see what your debts are. If you have a legitimate hardship AND don't have sufficient resources to cover, then you should be okay. I also seem to remember you have equity in your home. They could very legitimately tell you to sell it.

[briknope]

Since when does a bank follow guidelines? I keep hearing about the guidelines. If one is current, and they do approve a mod then they will be handing out something for free now wouldn't they? They (banks) get $1500 to modify and then some measly sum for a few years after. Not much incentive. Think about it, there are TONS of people behind that have missed more than 3 months so why would they spend any time or effort on someone that is current? Being proactive is the responsible thing to do I absolutely agree! However, the card they are counting on is that more responsible people will do in fact whatever it takes to meet their financial obligations. Especially a home! There are emotions involved in a home that do not exist on a credit card balance, or a car. Once everyone has exhaused all their savings, maxed out credit cards (probably from a different bank) and done everything possible then they might talk to you. These people loss mitigate, thats what they do! Collect debt! If your home is underwater big time, then they may retreat a bit. If you have equity, then there is no reason why they wont and will talk your home to sell it and cover their end of the deal. I personally have resigned myself to not paying becasue of the fact the home I live in is way under water. It will take 15 years to recover to break even at a normal appreciation rate. So either way you look at it my credit is or will be shot either way. If they do muster up some deal that is acceptable to compensate for the decline, like lowering the interest rate to 2% or whatever they propose, I will consider it. I am not going to get 3 jobs or eat mac and cheese for the next 15 years when I can sell it.

I'll lease for half what my payment is now, and buy the same home on the same street in 2 years time for $800 a month vs. $1700!

[so-cal-gal]

Originally Posted by jakelabry

I also seem to remember you have equity in your home. They could very legitimately tell you to sell it.

Where is that requirement to sell vs getting a mod if there is equity? I don't recall seeing that.

I even know of people with investment property who have been allowed to get a mod on their own home. If they were to be saying 'sell your home if there is equity' then they should have been telling the people with the investment property to sell some if it also.

I know there are big inconsistencies in what we are all being told but this seems a bit strange.

Are you sure of this 'equity' answer?

[shade]

Originally Posted by Frustrated069

Shade,

If you withdraw a good amount of money from savings,checking would they find out about it? There will be a trace of withdrawals if they ask for bank statements.

If you disclosed those accounts to them up front then maybe. If you didnt then they wont know about it.

[jakelabry]

Originally Posted by so-cal-gal

Where is that requirement to sell vs getting a mod if there is equity? I don't recall seeing that.

I even know of people with investment property who have been allowed to get a mod on their own home. If they were to be saying 'sell your home if there is equity' then they should have been telling the people with the investment property to sell some if it also.

I know there are big inconsistencies in what we are all being told but this seems a bit strange.

Are you sure of this 'equity' answer?

The OP said in previous post/thread house was at 95% LTV. Also banks will do an NPV which allows them to determine if they do better modifying or foreclosing.

[so-cal-gal]

When the post said 'sell', I was not understanding that you meant 'deny the mod' based on the NPV eval.

[abcxyz]

Originally Posted by shade

If you disclosed those accounts to them up front then maybe. If you didnt then they wont know about it.

Not true...even if you didn't disclose those amounts upfront, they ask for your tax return. Your tax return will show interest from brokerage firms or banks, as well as dividends if you have Mutual funds or stocks that pay out dividends. if they see that on your tax return, they'll prob ask you for the statements?

[shade]

I had a savings account with bank X last year and showed some interested earned. I did switch to another bank but Chase didnt ask for those statements with bank X.

[abcxyz]

Originally Posted by shade

I had a savings account with bank X last year and showed some interested earned. I did switch to another bank but Chase didnt ask for those statements with bank X.

Did you provide your tax return that showed Interest Income from Bank X? If so, then I suppose you're lucky they didn't ask you for the statements from Bank X unless the interest amount was so small that it wouldn't show much savings anyway? I don't know...

[shade]

When I did my taxes yes I disclosed that I earned interest from bank X.
I dont know the reason why they didnt ask but they didnt.