Loan Mod and Laid off

[whatsinaname]

What happens if you are in the middle of a loan modification with NACA/Chase and you lose your job?

Do you automatically lose your home or do they give you chance to find a job?

[heidi79]

fortunately for you, the loan mod process takes a long time, of course, when you are asked for updated pay information you won't have it, communicate then that you were laid off, in some cases they will use unemployment income valid toward a mod, you will not automatically lose your home.

i wish you the best in finding a new job, if all else goes wrong remember that you can contract an attorney to post-pone the foreclosure and buy you as much time as possible so you can get back on your feet.

[whatsinaname]

Originally Posted by heidi79

fortunately for you, the loan mod process takes a long time, of course, when you are asked for updated pay information you won't have it, communicate then that you were laid off, in some cases they will use unemployment income valid toward a mod, you will not automatically lose your home.

i wish you the best in finding a new job, if all else goes wrong remember that you can contract an attorney to post-pone the foreclosure and buy you as much time as possible so you can get back on your feet.

So if they were to use my unemployment income the, that would mean they would have to reduce my new payment to an even lower amount so that it is within, I think it is, 38%?

[danoo]

They used my unemployment as income and did drop my payment to 31% of my monthly benefit amount, but won't give me a final mod with it. They keep extending my trial. One thing though, it might depend on how much your monthly benefit amount is compared to how much you still owe on your mortgage.

[darkdays]

Originally Posted by whatsinaname

So if they were to use my unemployment income the, that would mean they would have to reduce my new payment to an even lower amount so that it is within, I think it is, 38%?

Not that easy. If the lower income is too low, you won't pass the nvp and no mod. Even HAMP guidelines let a lender off the hook with no or low income. My lender keeps making data entry "errors" on my income as the basis for denying me. One time they added it in twice so they could change their story and say I made too much money. Income plays a big role so if you can get a trial going or better yet a forbearance for a reduce payment (sometimes 50%) and then near the end of the forbearance period you could apply for a mod?

[GailCorr]

I applied for a mod in April '09 after 7 months of a substantial cut in salary. Chase jerked me around( Like everyone else) for 6 months-- resending , faxing etc , etc.
In Sept I was laid off. They then denied me : first time : for not a permanent hardship and too much equity. When I questioned them , they resubmitted and denied me again because I do not have a job and no income. They have refused to accept ue as income and refuse to do anything for me. Told me I can reapply when I have a job . P.S . I am current. I have no savings left. UE will not pay the mortgage , let alone anything else . How are you able to mod being laid off?

[davephx]

Sadly for millions in your situation the HAMP program was not designed or funded to take care of the new surge in unemployment. But even us fortunately enough to have some level of income are having a very hard time getting final mods approved.

There are proposals for plans to help the unemployed get funds for housing but unlikely to pass since would cost many billions more. A better alternative is a ban on foreclosures for those in temporary distress such as unemployed. Doesn't cost the Treasury anything but of course the mortgage companies would try to block it.