Is my income too high?

[kkz123]

Hello everyone, I am new to the forum. I wish I found it earlier, some of you are definitely heroic.

Here is my case:
My gross income is $10750 per month, my first mortgage is with Chase $2270, second is a LOC at prime, $350, insurance and HOA is about $100. Tax is about $1200. So 31% of my gross is $3332. My first mortgage+insurance+HOA is about $3590, slightly higher than the 31% of my gross.

It may sound like I can afford it but I can't, I have student loans and my new job is out of town form where my house is (I lost my job and found a new one with reduced pay), so I have to rent and travel. I am 60 days behind and soon to be 90 days. I submitted my mod application in late April and nothing material happened other than some outrageous repayment plan.

Am I making too much money to get a mod? What should my strategy be? I am 50/50 between walking away and getting a mod. Also they only have part of my gross income on file (just mine, my wife started working recently). Should I report and update my income?

Also I don't have a escrow, in case of walking away, should I pay the property tax (excess of $10,000)?

Appreciate your inputs.

kkz

[Evan Bedard]

Hi kkz123,

Well you may be making a little too much o qualify for a modification especially if you add your wifes income as well. I would continue to fight, but if they continue to tell you you make too much I may want to consider a short sale on the property.

[kkz123]

Evan, thanks for your reply. Since my first loan is 408k and second is about 128k, the short sale might cover the first, but the second will be wiped out. I don't know if they will accept it.

I am not sure what market value of the house is but I imagine, bought at $600,000 in 4/07, it is probably between 400 and 450k.

How should I start the short sale process?

[MrBreach]

Originally Posted by muttface

If you get rebuffed ask for manual underwriting because of hardship.

Is that a legitimate reason for manual underwriting, in their eyes?

[kkz123]

Hi Muttface, how diligent are the banks filing deficiency these days, due to my income level, is it more likely that they will file a judgement against me? Thanks for your info.

[kkz123]

I have decided to become current, too much at stake. Deficiency judgment, collection, job aspect, mental stress... Just need to find a job back home....