If your monthly expenses are over your monthly income....Can you still get a modification?

[msredd3129]

After emailing the OOP, and several phone calls I just got assigned to Tabitha Mackellar today. They say they have received all the documents I faxed in and I should be hearing from Tabitha by tuesday. After reading the threads in this forum, I really need to know what happens if your income is less than your monthly bills. Does anyone know?...Will that mess up my chances of getting a modification?

[Garry]

There is no ratio of back-end DTI that disqualifies a borrower from a loan modification. However, borrowers whose back-end DTIs will be above 55% once their loans are modified are required to receive counseling from a HUD-certified counselor. Despite this requirement, these borrowers are under no obligation to accept the advice of that counselor or work with that counselor to reduce their debts.

[ama125]

I'm in the same predicament. I emailed OOP on 8/10 and am hoping next week to hear if I'm approved or not. Of course, I am thoroughly confused as to what I have actually been submitted for (told the mod proposal is submitted under MHA guidelines, but it doesn't fit the requirements so I don't see how it could be). Anyway, that's a whole different story. I'll be sure to update what I find out.

[ohhhdear]

Originally Posted by Garry

There is no ratio of back-end DTI that disqualifies a borrower from a loan modification. However, borrowers whose back-end DTIs will be above 55% once their loans are modified are required to receive counseling from a HUD-certified counselor. Despite this requirement, these borrowers are under no obligation to accept the advice of that counselor or work with that counselor to reduce their debts.

This probably spounds like a stupid question-- but what do you mean by "back end DTI"? What does that mean?

And the 55 %?

Thanks for any help--- just trying to educate myself.

[Skipper]

Originally Posted by ama125

I'm in the same predicament. I emailed OOP on 8/10 and am hoping next week to hear if I'm approved or not. Of course, I am thoroughly confused as to what I have actually been submitted for (told the mod proposal is submitted under MHA guidelines, but it doesn't fit the requirements so I don't see how it could be). Anyway, that's a whole different story. I'll be sure to update what I find out.

Hi Ama,

I might have missed it, but why do you guys not fit the MHA requirements?

Skipper

[msredd3129]

Originally Posted by ama125

I'm in the same predicament. I emailed OOP on 8/10 and am hoping next week to hear if I'm approved or not. Of course, I am thoroughly confused as to what I have actually been submitted for (told the mod proposal is submitted under MHA guidelines, but it doesn't fit the requirements so I don't see how it could be). Anyway, that's a whole different story. I'll be sure to update what I find out.

AMA..How do you know you don't fit the requirements? Please do update. I'm curious to know what happens. Thanks for replying to my thread

[sahm2two]

We at first were telling them my husbands regular income (no overtime -which we depend on every month) And our expenses were about $400 greater than our income. After two times and doing this we submitted the overtime checks & at that point the system did not automatically kick us "out" because our income was right at or a tiny bit higher than expenses.