Bank statements - 3x mortgage payment and YOUR'E DENIED?

[Hopeful Father]

I have to send my last 2 bank statements in order to possibly get a trial mod.

We've accumulated some money due to only paying 1/2 of our original loan as part of the forbearance agreement. AND we've cut down our expenses quite a bit. AND I received a bonus check (not much, only $2000)

Thing is we show a decent bank balance and another poster said that if you have 3x your mortgage payment in the bank you'll be denied.

WE DON'T have 3x our original payment in the bank, but WE DO have 3x a projected mortgage payment (31% of my GROSS income) showing on our last bank statement.

Anyone hear about a rule like this?

[litehouse01]

Its true....if you show you have too much either in savings or money left over after expenses each month, to the bank they assume you have funds and therefore no need for a modification so its a very fine line ..so you have to be very careful as they are looking at all your assets with a fine tooth comb.

[davephx]

The 3 months of unmodified original payment is a requirement if you are not 60 days late so have to convince they you are in imminent risk of default which very few servicers ever do mods based on that.

The latest Treasury report just released only includes data for 60 days or more since no real requirement to do mods if not that late (they CAN but rarely do).

If more than 60 days there is no stated 3 month rule. It is very unclear.

[Mercury213]

Some people have found it useful to have a separate bank account.

[myhouseNH]

A Safe in the basement is a good idea

[clubpardo]

When I called in yesterday I was complaining that I had been denied b/c of this reserve issue you mention. In my case the UW had failed to look at the monthly statements I continued to send in which showed the balance to be dwindling each month, rather they were just quoting the amount I had on the initial form, 8 months prior.

When I said this the person in Imminent Default - said oh this has changed. I asked, changed in what way? She said, well now you can have up to $25,000 cash/stocks on hand. FYI - this is the first I have heard this as compared to the prior 3x the mortgage amount figure. So maybe now you dont have to deplete all your cash on hand before being consdidered for loan mod? One can only hope.

[shade]

Id still take the money out so they cant see crap. Then if your loan is modded put it back

[OlegWild]

A Safe in the basement is a good idea

Make sure that SAFE is not in the house you are trying modify mortgage for . I hear BOA can just break in and change locks....

[timmywit]

We had next to nothing in liquid reserves, about 2k but both of us had a decent amount in 401k. Trust me before we got the hamp the Pricks at BoA saw that 401k as Shark food. So I could not only imagine if you have some money thrown in savings. In the banks eyes they want to see you dried out. I do think 3k per month in mortgage payments is kind of redicioulus=all it would take 1 trip to the ER with crap health insurance your liquid reserve would go up in smoke.

[capote203]

i was told by my servicer that you had to have less than 3x monthly expenses in reserve, not 3x your mortgage payment....

[jakelabry]

i was told by my servicer that you had to have less than 3x monthly expenses in reserve, not 3x your mortgage payment....

But isn't a mortgage payment a monthly expense?

[capote203]

it would be included in your monthly expenses - but your total monthly expenses would include ALL of your expenses for the month (mort, car pymt, insurance, health, phone, food etc...)

[timmywit]

i was told by my servicer that you had to have less than 3x monthly expenses in reserve, not 3x your mortgage payment....

According with the hardship affidavit it states generally 3months of all of your monthly payments, but again banks dont like playing by the rules. There has been many instances where banks think 401k are liquid assets. but when it all comes down to it your home value-I pressed and pressed my homevalue vs loan amount to these pricks. In the end this is all they care about, in a few conversations with these village idiots suggested I with draw from my 401k-I litterly told them to go and eat sh&t! I am now going to suffer mega penalties from the IRS, plus If I would withdraw from a 401k It would be for a deposit for a rental?, not to this toxic asset.

I would still go with the 3x mortgage payment just incase if these Bozos would come back in a few months and say its 3x mortgage payment not 3x all expenses.

[Hopeful Father]

Thanks for all the responses. I think we'll be ok if they look at expenses as everything INCLUDING the mortgage payment. What can they expect? I've been on a 8 month 1/2 payment forbearance so we're going to accumulate some $$$.

[davephx]

When I said this the person in Imminent Default - said oh this has changed. I asked, changed in what way? She said, well now you can have up to $25,000 cash/stocks on hand. FYI - this is the first I have heard this as compared to the prior 3x the mortgage amount figure.

This is just released directive from Fannie and Freddie -not seen it yet for HampAdmin for non GSE's.

Old rule: Basically up to servicer to be convinced in Imminent Danger of Default if less than 60 days delinquent or more than 3x unmodified 1st mortgage kicked you out.

New Rule - If over $25,000 they can reject but have the option to still continue.. if under $25,000 liquid assets we have a new secret Imminent Default Indicator.. sort of like the Net Present Value test. But at least it just isn't up to the servicers to not be convinced your at risk and make you have to be 60 days delinquent.