MHA and Income Info

[sanny]

Hello everyone


We finally got BofA to agree to just accept signed MHA papers for now, with no first trial payment, which was originaly due on August 2nd. They didn`t know that my hubby was laid off, and now that he`s back to work, they agreed to let us pay first 2 trial payments on September 1st, in order for us to be able to provide two recent pay stubs as well.
My husband is in construction, and one week he has 20-25 hours, whereas, next week he may work 50 or 55. In the winter time they have no hours at all. When we originally submitted, he was making 500 a week, and our expense sheet was making no sense at all, because we had no idea what we can list on there. Now we realize that we spend much more money on fuel and food alone, than what`s stated there, and we also realize that acording to that list and our income we can`t even afford to make doctor co-pay of 20 bucks, if needed. Even so, i think we should be able to afford our new payment of 877, but if it goes up in the end of the 3 months, we will need to walk away.
There is one person on this forum who just finished making three trial payments and recieved final mod docs. She said they didn`t ask for new income information. Yet some say that this is requirement by Fannie Mae, once trial period is over.
Does anyone know which is true? If they ask us for new paystubs and my hubby makes more money in those two weeks, it`s not gonna be very good for us.

[ama125]

Originally Posted by sanny

There is one person on this forum who just finished making three trial payments and recieved final mod docs. She said they didn`t ask for new income information. Yet some say that this is requirement by Fannie Mae, once trial period is over.
Does anyone know which is true? If they ask us for new paystubs and my hubby makes more money in those two weeks, it`s not gonna be very good for us.

I believe the word "requirement" was misused on the postings. There are two ways that a borrower may be screened for eligibility and offered the MHA trial:
1. Standard Income Verification Process
If recent borrower financial information is available (provided within 90 days of the date the servicer determines eligibility), servicers may make a firm offer solicitation indicating the borrower may qualify for the Home Affordable Modification.
2. Alternative Verification Process
As an option, servicers may require a borrower to submit the required documentation necessary to verify the borrower's eligibility for a Home Affordable Modification before preparing the Home Affordable Modification Trial Period Plan.

From what you are saying, it appears that your income was already verified once. You mention that BofA did not know that your husband was laid off and is now back to work. Did you inform them about this? If so, they now know that your previous stated income will not align with your current income, so they will in all likelihood request pay stubs during your trial period (you mention this as well in your post that they are giving you time to provide two recent pay stubs). They do want to help homeowners if they can, but you have to be able to afford those payments. If your income doesn't support this, it may not happen for you. Likewise, if your income goes up by more than 25% from what was previously given, your payment will likely increase. The goal of the program is to have your payment be as close as possible to 31% of gross monthly income without going under that. In short, I don't think they will request new pay stubs unless they suspect you have lied about your income (the proof does not support what was told to them) or you have gotten a raise or new job since pre-qualifying. In your situation, I would say they will and are going to request new pay stubs.

[sanny]

Thank you so much for your reply. In any case, new payment shouldn`t go over 31 %, correct?
And do you think they will let me submit new expense sheet?

Thank you

[cycle87]

sanny,
So how much were you paying? and you got an offer of $877 now? is this 31% of your monthly income?

[ama125]

Originally Posted by sanny

Thank you so much for your reply. In any case, new payment shouldn`t go over 31 %, correct?
And do you think they will let me submit new expense sheet?

Thank you

That is correct, the payment shouldn't exceed 31% of your gross monthly income. I do not see any reason they would not accept a new expense sheet. If your debt-to-income ratio is equal to or greater than 55%, than you will be required to undergo loan counseling. Here is an excerpt for more details:

Total Monthly Debt Ratio
The borrower’s total monthly debt ratio (“back-end ratio”) is the ratio of the borrower’s monthly gross expenses divided by the borrower’s monthly gross income. Servicers will be required to send the HAMP Counseling Letter to borrowers with a post-HAMP modification back-end ratio equal to or greater than 55 percent. The letter states that the borrower must work with a HUD-approved housing counselor on a plan to reduce their total indebtedness below 55 percent. The letter also describes the availability and advantages of counseling and provides a list of HUD-approved housing counseling agencies and directs the borrower to the appropriate HUD website where such information is located. The borrower must represent in writing in the HAMP documents that (s)he will obtain such counseling.
Announcement 09-05R Page 12
Fannie Mae encourages face-to-face counseling; however, telephone counseling is also permitted from HUD-approved housing counselors that cover the same topics as face-to-face sessions. Telephone counseling sessions provide flexibility to borrowers who are unable to attend face-to-face sessions or who do not have an eligible provider within their area.
A list of approved housing counseling agencies is available at hud.gov or by calling the toll-free housing counseling telephone referral service at 1-800-569-4287. A servicer must retain in its mortgage files evidence of the borrower notification.
There is no charge to either the borrower or the servicer for this counseling.

[sanny]

Actually, to be honest, i don`t know how they came up with 877 per month. Our total income back in April, when we submitted, was 2500, and that would make for a payment of around 750, if i am correct...
Our old payment was 1393.00.
I really hope they will let us submit new expense sheet, otherwise we won`t last long after trial period ends.

[CW California]

Originally Posted by sanny

Actually, to be honest, i don`t know how they came up with 877 per month. Our total income back in April, when we submitted, was 2500, and that would make for a payment of around 750, if i am correct...
Our old payment was 1393.00.
I really hope they will let us submit new expense sheet, otherwise we won`t last long after trial period ends.

I'm not sure if you went thru NACA or not?? NACA has their own way of calculating what "your" affordable payment is. It's only been lately that they have put some people in at the 31%. It used to be that they would just subtract your expenses and leave $200 over and then calculate your payment. NACA expects many people, that have higher incomes, to make a higher percentage payment because they will have more left over after expenses. They also only allow XX amount for certain expenses. (top roman included.) At least that's their thinking. I also think they have a good idea of what will fly with the investors too.

[sanny]

No we didn`t go to NACA. We sure did lots of wonderful things about NACA, but for us didn`t work at all. After completing online form on NACA web site in April, we tried calling numerous times, just to be put on hold for an hour at the time, unable to ever reach anyone. We tried emailing as well, never got single response. Ever. Day after day, we waited for a way to set up initial phone interview, or any kind of interview, with no way to ever reach a human. I submitted some documents online, along with bank statements. A month later, we got money missing from our checking account and had to close all the cards and the account we held for more than 10 years. I am not naming names, but it`s a bit weird that this happened to us first time ever, right after submitting bank statements to NACA.
So we went for help to a local organization named GENESIS (i am in Phoenix AZ), who did everything free of charge, and they were there for us whenever we needed some help.
I don`t know what kind of result i`d had with NACA, maybe better maybe worse, but for us it proved to be impossible to even get started with them...
Just few days ago i tried to email NACA asking for help with lost member ID, well, more than a week now, and no answer. Same with the phone.