Repayment plan experiences

[jlybean]

I apologize if this question has already been answered but I searched and didn't find anything.
Long story short applied for and was denied a modification back in Dec 2011 was told best (only) option was to do a repayment plan that will catch up the 3 missed payments (which I was advised to miss to qualify for mod). So this causes our house payment to go up $400 per month until Sept 2012. We were struggling to make the payment before the increase so this really didn't help us but thankfully my husband was worked some overtime to help us make the payments for the last 3 months. This month we will not be so lucky. We will either not be able to make the payment or just be late with it. My question is if we are late (by about a week) will they take us off the payment plan and start foreclosure or do you think they may cut us a break?
Any and all responses will be appreciated!

[Evan Bedard]

This month we will not be so lucky. We will either not be able to make the payment or just be late with it. My question is if we are late (by about a week) will they take us off the payment plan and start foreclosure or do you think they may cut us a break?

If your regular mortgage payment is unaffordable there is nothing this repayment plan is going to do to assist you.. Once it is over you will go back to your regular payments and be back at square one.. If you were denied for a modification your servicer must explain the reason why, not just say there is nothing they can do for you.. When first applying for a loan mod they are going to review your account for the HAMP program.. If they determine you cannot qualify for HAMP they are supposed to explain to you the reason why and you can reapply for a traditional in-house modification..

[Cat Damiano]

jlybean,



Are the figures still the same as you posted in the qualifying thread, because your payment is approx. 23 percent of your gross income? Also after the bk the back end debt would have been wiped away, with this scenario, would you be able to now afford the regular payment after the repayment plan is complete?

Here is what you posted:

1. Loan Balance 195000 on First 50000 on Heloc
2. Past Due 2075
3. Gross Income 108000/yr
4. Mortgage Payment 1960
5. Taxes-included in payment
6. Insurance 155.60
7. Home Value= according to zillow 200-241,000 ( I would guess we could get around 220,000 and that is being really optimistic)
8. Investor=Freddie Mac

We have been discharged from a CH 7 mortgage for almost a year. Didn't reaffirm just doing pay through. We are a family of 6 and honestly I would walk away but there is nothing out there that would hold all of us that would be any cheaper than what we currently pay. Our house is 20 years old and things are starting to break-more money for us to spend!

[jlybean]

Thank you for your response. When we were denied, the reason given was that according to Freddie Mac we were not in default or in danger of immenent default. Should we reapply for HAMP or would it just be best to contact Citi and tell them we can't afford the repayment plan and see if they can/will help?

[jlybean]

Cat-
Everything is the same except the amount behind now is 6000 or so because of the missed payments.
Thanks for responding.

[Cat Damiano]

If the figures that I reposted above are the same, then a HAMP modification will not be able to lower your payment as it is at 23 percent of your gross income.

[Cat Damiano]

Since the payment is already very low, and you have effectively eilimiated your debt load with the discharge of the bk, you may want to finish the repayment plan which will bring the loan current. Unless you are considering walking away as I saw you had also posted in The Hampster Wheel thread in which case you would be throwing money that you could be saving away by continuing on the repayment plan.

[Evan Bedard]

Yes Cat is right, for HAMP your payment must be above 31% of your gross monthly income to qualify for the program...

[Evan Bedard]

Do you have any other major expenses that are causing your mortgage to be unaffordable?

[jlybean]

We are going back and forth about staying or walking away-one day it one and the next its another. Hate the thought of moving and also tired of living just to pay for the house.
I know it seems like the payment is low but our net pay is usually between 3500-4000 a month after taxes. Our only major expense I guess would be our 440 car payment but we also have utilities, insurance and 4 kids to raise so not alot extra left over. We want to continue with the repayment plan just this month is a little tight-had some unexpected expenses on our furnace so might be late and don't want to get kicked off the plan. We are meeting with a financial planner tonight to see if we can come up with any other options.
Thanks for all of your responses. I appreciate them!

[bankwhipped]

We are going back and forth about staying or walking away-one day it one and the next its another. Hate the thought of moving and also tired of living just to pay for the house.
I know it seems like the payment is low but our net pay is usually between 3500-4000 a month after taxes. Our only major expense I guess would be our 440 car payment but we also have utilities, insurance and 4 kids to raise so not alot extra left over. We want to continue with the repayment plan just this month is a little tight-had some unexpected expenses on our furnace so might be late and don't want to get kicked off the plan. We are meeting with a financial planner tonight to see if we can come up with any other options.
Thanks for all of your responses. I appreciate them!

If your take home pay is less than 50 percent of your gross that is where your problem is, that does not seem correct. Are you putting too much into an IRA or a college fund? check your w-4 withholdings I bet that you are not claiming 6 dependants and you are probably getting a large tax refund every year. I you look into adjusting those items, @ 108k per year income you should not be having shuch a dificult time with finances and that is what a financial planner is going to tell you. If your only expenses are housing exp. and an average car payment you should be (although not rich) ok and able to meet your expenses. I would check the W-4 with your employer, that can make a big difference on take home pay if you are only claiming 1 or 2 dependents instead of 6.

I would also consider trying to settle the 2nd. You may have to default in order to get them to settle but the first seems reasonable & you probably couldn't rent for under 2k per month for a house big enough for 6 people