Qualification with front end DTI < 31% but lot of revolving debt

[Socool_me]

Hello Guys,

Does anyone know if you can still qualify with a lot of revolving/CC/other debt but the 1st mortgate payment less than 31% of gross?

I have maxed up by CCs to stay afloat and the home values is depreciated a lot. All HELOC is under water plus part of primary mortgage. My monthly payments exceed income after all things add up. Spouse lost job but not part of home loan. Is it worth applying for a mod or it will simple denied due to the front end DTI limitation?

Thanks!

[Bill_IN]

I'm at about 45-5- days behind with Citimortgage, and in the same situation as you. Been using HELOC and CC's to pay the mortgage and bills after a $25k/yr income loss 3 yrs ago. Citimortgage turned me down because my mthly income is $4,800. and avg mthly expenses are at $6,125.

Citi offered to cut my house payment in half for 4 months, from $2,020. to $1,010. so I could use the $1,010. to pay down some of my other bills. I'm not sure where they think that $1010. to pay down other bills comes from since bring home is $1,325. less than expenses. And to the Citi guy that told me this - it made sense. Then, if we made that payment on-time for 4 months they would add the $4,040. onto the backend of my upside-down mortgage, and my payments would go back up to $2,020. If I didn't make the payments on-time for those 4 months, I would have to payback the $4,040. immediately.

I know, it sounds stupid doesn't it? Because it's stupid. I mean, even as I type this I can't believe how stupid it sounds. But that's the way it went.

I've also read on here that Citi won't even consider you for a mortgage mod unless you are 90 days late. So I'm working towards my 90 days, and see if they become a little more motivated......and more intelligent.

Good luck!

[Bill_IN]

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I'm at about 45-5- days behind with Citimortgage, and in the same situation as you. Been using HELOC and CC's to pay the mortgage and bills after a $25k/yr income loss 3 yrs ago. Citimortgage turned me down because my mthly income is $4,800. and avg mthly expenses are at $6,125.

Citi offered to cut my house payment in half for 4 months, from $2,020. to $1,010. so I could use the $1,010. to pay down some of my other bills. I'm not sure where they think that $1010. to pay down other bills comes from since bring home is $1,325. less than expenses. And to the Citi guy that told me this - it made sense. Then, if we made that payment on-time for 4 months they would add the $4,040. onto the backend of my upside-down mortgage, and my payments would go back up to $2,020. If I didn't make the payments on-time for those 4 months, I would have to payback the $4,040. immediately.

I know, it sounds stupid doesn't it? Because it's stupid. I mean, even as I type this I can't believe how stupid it sounds. But that's the way it went.

I've also read on here that Citi won't even consider you for a mortgage mod unless you are 90 days late. So I'm working towards my 90 days, and see if they become a little more motivated......and more intelligent.

Good luck!

[SillyWorld]

Originally Posted by Bill_IN

---

I'm at about 45-5- days behind with Citimortgage, and in the same situation as you. Been using HELOC and CC's to pay the mortgage and bills after a $25k/yr income loss 3 yrs ago. Citimortgage turned me down because my mthly income is $4,800. and avg mthly expenses are at $6,125.

Citi offered to cut my house payment in half for 4 months, from $2,020. to $1,010. so I could use the $1,010. to pay down some of my other bills. I'm not sure where they think that $1010. to pay down other bills comes from since bring home is $1,325. less than expenses. And to the Citi guy that told me this - it made sense. Then, if we made that payment on-time for 4 months they would add the $4,040. onto the backend of my upside-down mortgage, and my payments would go back up to $2,020. If I didn't make the payments on-time for those 4 months, I would have to payback the $4,040. immediately.

I know, it sounds stupid doesn't it? Because it's stupid. I mean, even as I type this I can't believe how stupid it sounds. But that's the way it went.

I've also read on here that Citi won't even consider you for a mortgage mod unless you are 90 days late. So I'm working towards my 90 days, and see if they become a little more motivated......and more intelligent.

Good luck!

I am sure you read around this site, as many many on here will not even call Citi anymore they have no idea what they are saying they tell you anything and everything on every different call you make top them I would suggest you do not work with cITI AND SET UP WITH naca.COM THEY WILL TRY THE BEST DEAL YOU CAN GET...

[Bill_IN]

Have you heard anything from NACA? Or had any meaningful conversations in regards to your HELOC? My understanding on HELOC's is that, they tend not to write them down unless the HELOC is with the same lender as the first mortgage.