Loan Mod with Income over 31%?

[Rosecafe]

Question. I have a friend who is considering requesting a mod. His income is over 31% combined with his wife.

They have lost more than 350,000 in value in their home as well (neighbor) and they are in the same boat as we are that we would be unable to sell without losing lots (although the big problem right now is the inability to sell, not enought buyers in our area). They are being smothering by their bills, childcare, credit cards, taxes, insurance, household, you get the picture (they would be at about 60% DTI).

He is wants to try but is not sure it would go through due to the income. Did I read that they also need to consider expenses as well when determining a mod? Any thoughts?

Thanks,
Rose

[booggs28]

Rose: typically if DTI is over 31% and you cannot get expenses down to that level then a loan mod may not be available as you have to show that you can make the new payment - that being said, it does not hurt for your friend to call his lender and see if they are willing to work with him -

[sahm2two]

Yeah, I agree. I know when I started this "journey" we were current and I really feel that hurt us. So, with someone having that much equity in their home as well as a higher income it may not go through...but you never know!