Finished My Chase (MHA)HAMP Trial on 03/01. Permanent Docs at my door steps today WOW!

[TomEason]

Yes Scarlett, I stopped paying all credit cards and both mortgages. Wish Chase had taken longer to approve my loan mod but oh well.

Griffy

An astute observation; I share your sentiment. It's in a borrower's best interest when a lender drags their feet and takes a long time to underwrite a loan mod.

[Scarlett]

So, yesterday I called they asked for 2 months bank statements, and I actually forgot to put my name on the first page!! So I sent in that. Then got home and they said they need the whole package sent together again, not just the revised and new documents they asked for. I don't have a fax, so it's off to the bank again. My toddler is becoming acquainted with the staff.

[Scarlett]

I'm also worried if it takes them awhile to get everything to underwriting, will they keep asking for an updated profit and loss?

[KevinFinnerty]

Kevin- Sorry I misunderstood you, I thought you were self-employed and therefore turning in a profit and loss. Hope you've had some luck since last you posted.

No problem, thanks for trying to help.

Good luck with your situation. I'm pretty much screwed.

[Scarlett]

Griffy, Hi are you there...
Don't yell at me Tom...I know I already asked this, but the gross number RR gave me needs to be my gross on the p&l right? Before my business expenses. The bank use your gross, not the net right?

One more thing ... I used the Rest Report budget and personal income numbers EXACTLY. We made some tweaks to the budget to better reflect my actuals but the bottom line budget number stayed the same. This was key to getting the lowest payment approved that would work with the value of my home and escrow.

As a side note it has been helpful to have a budget to manage my spending. They questioned my car insurance amount, which I then questioned and then able to get that reduced.

[TomEason]

Griffy, Hi are you there...
Don't yell at me Tom...I know I already asked this, but the gross number RR gave me needs to be my gross on the p&l right? Before my business expenses. The bank use your gross, not the net right?

Hi Scarlett

Don't worry - I won't yell at you, LOL.

I can answer your question.

A self employed person's P&L statement will result in a bottom line number, after business expenses are subtracted from top line revenue. That bottom line amount, for the purposes of a mod, will be your gross revenue.

In other words your lender will use that bottom line figure to compute the 31 percent DTI ratio to see if you qualify. The number appearing on your RR should be the same as the bottom line on your P&L.

[Scarlett]

Oh no! I wonder if they will let me revise it? It will make me a little under my magic number. And it might confuse things as I wrote in my gross on the other pages of the application w THE number, but on my p&L w expenses it will be couple hundred less. I'll see if I can revise...ugh. My head is going to explode! I'm so anxious.

Hi Scarlett

Don't worry - I won't yell at you, LOL.

I can answer your question.

A self employed person's P&L statement will result in a bottom line number, after business expenses are subtracted from top line revenue. That bottom line amount, for the purposes of a mod, will be your gross revenue.

In other words your lender will use that bottom line figure to compute the 31 percent DTI ratio to see if you qualify. The number appearing on your RR should be the same as the bottom line on your P&L.

[Scarlett]

I just called today and they told me it just got assigned to an underwriter. But I thought that happened over three weeks ago! So I'm panicked that they are going to ask me for all new paperwork. I haven't payed last month or this month and that's freaking me out big time. I'm wondering if I should work out a repayment plan with them or just wait. I thought the process was going faster, but it looks like it's going to be dragged out for extra torture.

[Griffy]

Scarlett,

Just wait and do not pay anything until you get a formal yes or no. Wish Chase had gone a bit slower with me so I had more months free ... oh well.

Good luck!

[TomEason]

Scarlett,

Just wait and do not pay anything until you get a formal yes or no. Wish Chase had gone a bit slower with me so I had more months free ... oh well.

Good luck!

Hi Griffy

I agree with you.

It's beneficial for the borrower if the lender takes a long long time in reviewing a loan mod.

FYI, Chase used to take forever (several years!) but they've improved their operations and shortened the timeline.

[Scarlett]

But Griffy you got your loan mod. Who knows if we will get ours; I'm scared it will take months and if we get denied, then what? I didn't send in the rest report, but I could...should I?
I know we qualify income wise and we are in a interest only loan that will adjust in a few years. It's painful to think how long we've been paying just interest. It seemed less so when it was worth so much more a few years ago.
Thanks guys for your replies. It calms me down.

[Griffy]

I personally did not send in my Rest Report but did use the calculations for determining my budget and self employed income. Still say hang tight and enjoy not paying a mortgage.

[mimiy]

I just called today and they told me it just got assigned to an underwriter. But I thought that happened over three weeks ago! So I'm panicked that they are going to ask me for all new paperwork. I haven't payed last month or this month and that's freaking me out big time. I'm wondering if I should work out a repayment plan with them or just wait. I thought the process was going faster, but it looks like it's going to be dragged out for extra torture.

Scarlett -- search for my post from a couple of weeks ago giving a total rundown of the timeline and process in getting Chase to first approve my trial and then my permanent mod (approved end of July). The info in that LONG post may be highly valuable to you.

The soundbite version: I first applied for a trial mod in Oct. of last year. Trial was approved in Feb. and commenced on March 1. The 3 month trial ended May 1 with all payments timely paid. It took another 10 weeks for Chase to approve my permanent mod (have already signed the docs) and payment stayed same as for my trial with $1.00 a month difference.

I did not make a mortgage payment for 8 months until the Trial was approved and I made my first Trial Mod payment. All the delinquent payments were then put on the back of the loan. So agree with the advice here. I do NOT think you should throw good money after bad until you have an approved Trial Mod.

I am self-employed. No one helped me (other than advice from this forum), it was my first time applying and I did not use rest report. (You need to find my post to see what i did). The calculator on the MHA site even said I wasn't eligible but obviously I was so hang in there. You Business Net after expenses is your Gross Income. You should fix that and Chase should accept the corrections by fax. If you income goes up and down be sure to send them 12 months of bank statements rather than two, without them asking for them, if they better support your P&L and last filed tax return (which they will ask for if they have not already.

Good luck Scarlett and take heart from my story!

[TomEason]

Scarlett -- search for my post from a couple of weeks ago giving a total rundown of the timeline and process in getting Chase to first approve my trial and then my permanent mod (approved end of July). The info in that LONG post may be highly valuable to you.

The soundbite version: I first applied for a trial mod in Oct. of last year. Trial was approved in Feb. and commenced on March 1. The 3 month trial ended May 1 with all payments timely paid. It took another 10 weeks for Chase to approve my permanent mod (have already signed the docs) and payment stayed same as for my trial with $1.00 a month difference.

I did not make a mortgage payment for 8 months until the Trial was approved and I made my first Trial Mod payment. All the delinquent payments were then put on the back of the loan. So agree with the advice here. I do NOT think you should throw good money after bad until you have an approved Trial Mod.

I am self-employed. No one helped me (other than advice from this forum), it was my first time applying and I did not use rest report. (You need to find my post to see what i did). The calculator on the MHA site even said I wasn't eligible but obviously I was so hang in there. You Business Net after expenses is your Gross Income. You should fix that and Chase should accept the corrections by fax. If you income goes up and down be sure to send them 12 months of bank statements rather than two, without them asking for them, if they better support your P&L and last filed tax return (which they will ask for if they have not already.

Good luck Scarlett and take heart from my story!

You can't find your own post? FYI, it's doubtful that Scarlett will take the time to try and find it.

[Scarlett]

Tom be nice...and what do you mean? I'm either incompetent or too lazy to look up an old post, haha.

Mimly thank you, I really appreciate it, and congrats on your loan mod. I never did change my p&l though. After really fretting about it I decided not to change it; I don't know I thought it would seem suspicious. And it was only 200 or so. Everywhere on my other docs say the right gross. It says 200 less on business net. Chase has a new form, they told me to use that. It's sort of confusing because we don't separate things, there is no business account. I call chase every two days. My rep has never called me, well once he called me back. I think I beat him to it. I'm too nice, I need to be pushier. Any advice on what to say to get more info? They said they are really backed up right now and it's just been assigned to an underwriter after about a month. I gave them everything, just wondering how much more they will ask for. I know mimly, they asked you for a lot of details, but Griffy didn't even have to turn in bank statements...

[Scarlett]

I need advice...
So, I called Chase for an update, they need a written explanation for why I didn't include my income, like I did last year. Now on my income taxes last year I claimed my profits from selling some merchandise and personal items. But I just casually sell stuff, and I haven't had as much to sell this year so I didn't include it. I did include some profits in my husbands p&l though. What should I say in the letter? I was just going to say I casually sell things it's not a job really...

[Cat Damiano]

You could state that, or if you have an accountant do your P&L statements, have them explain the difference.

[TomEason]

Scarlett

If you do say that, Chase will consider it a hobby, not an income generating business. They will attribute no income to that activity.

[joeinchicago]

Hi: Because I cannot figure out how to reply to your posting "Strategy for Settling Your 2^nd Loan", I am replying to this one.
My question is if you are keeping current on the 1st (main) mortgage and stop paying on the 2nd loan, can't they still execute a foreclosure on you? After spending many months on trying to get my 2nd lien modified unsuccessfully, I'm planning on following your steps from your post "Strategy for Settling Your 2^nd Loan". Both my 1st and 2nd are with the same bank. But I want to be careful not to loose the home. Thanks.

[TomEason]

Hi: Because I cannot figure out how to reply to your posting "Strategy for Settling Your 2^nd Loan", I am replying to this one.
My question is if you are keeping current on the 1st (main) mortgage and stop paying on the 2nd loan, can't they still execute a foreclosure on you? After spending many months on trying to get my 2nd lien modified unsuccessfully, I'm planning on following your steps from your post "Strategy for Settling Your 2^nd Loan". Both my 1st and 2nd are with the same bank. But I want to be careful not to loose the home. Thanks.

Thanks for your post.

FYI, that thread has been closed (3,700 posts) because every conceivable situation has been addressed at least once. You might use the thread search tool to find an applicable post.