Need Paperwork advice

[nmwadam]

Hey everyone, I have to send in my forms for the modification, I was just put into the 3 month trial period. Here is my questions.

My income is Gross (2400) Net (2000), my current mortgage payment on my first lien is 1039.

I know that 31 pct of my gross would make my new payment about 744.00.

I need to know when filling out the household bills I total about 1400.00 leaving me a surplus of roughly 600.00, the question is, when figuring out the household bills does the bank include the current mortgage in with the regular expenses? Should I be showing a surplus just using the regular expenses or should you have a small surplus by adding all regualr expenses and the mortgage included?

[minknmelissa]

As ridiculous as it sounds I think they do count your mortgage too.

[minknmelissa]

Mine got approved at a two hundred dollar surplus but i had to stop feeding my family the right way to get it down

[nmwadam]

Originally Posted by minknmelissa

Mine got approved at a two hundred dollar surplus but i had to stop feeding my family the right way to get it down

On the form where they ask you to list all your expenses it does not ask for you to show your mortgage payment, without my mortgage payment I show a surplus of around 600.00 but if I add in my first and second mortgage then I am at a negative of around 650-700. I don't know what to report in order to show what I need to in order to get this permanent.

[hope67]

Originally Posted by nmwadam

On the form where they ask you to list all your expenses it does not ask for you to show your mortgage payment, without my mortgage payment I show a surplus of around 600.00 but if I add in my first and second mortgage then I am at a negative of around 650-700. I don't know what to report in order to show what I need to in order to get this permanent.

Just to make sure I understand it correctly, you are saying that your expenses are $1,400 without the mortgage and if you add the mortgage you'll have a negative of around $650. As far as I remember, some people here had the same situation and they were declined. They were told they couldn't afford the modified mortgage payment because their budget showed a negative balance.

[nmwadam]

Originally Posted by hope67

Just to make sure I understand it correctly, you are saying that your expenses are $1,400 without the mortgage and if you add the mortgage you'll have a negative of around $650. As far as I remember, some people here had the same situation and they were declined. They were told they couldn't afford the modified mortgage payment because their budget showed a negative balance.

So on the Liabilites and expenses form, I should list the current mortgage payment and all bills? Should I adjust my expenses so that it appears that I can afford the payment at 775 but not at 1039, I am confused if they see that I have a surplus then it shows you can afford your current mortgage. I can adjust my expenses to show that I have a surplus before my mortgage and then adjust them to show that I can afford the lower payment but not the original payment.

[nmwadam]

Originally Posted by minknmelissa

Mine got approved at a two hundred dollar surplus but i had to stop feeding my family the right way to get it down

Did you show a surplus of 200.00 using all your expenses and your original mortgage payment included in with those expenses?

[hope67]

Originally Posted by nmwadam

Should I adjust my expenses so that it appears that I can afford the payment at 775 but not at 1039

Exactly, they have to make sure you will be able to afford the modified payment of 775.

[nmwadam]

Originally Posted by hope67

Exactly, they have to make sure you will be able to afford the modified payment of 775.

Alright, I am going to break it down both ways on here, any advice after you see the numbers, let me know.

Current Liabilites/expenses with the original mortgage payment included

mortgage	1039
2nd mrtg	164
rental property mrtg	465
gas/elec/water	225
cell	75
car insurance	60
food	150
credit cards	80
auto expenses	80
total	2338

Net income 2000
Equals 338 Deficit

This is what the numbers look like using the modified payment of 775.00

mortgage	775
2nd mrtg	164
rental property mrtg	465
gas/elec/water	200
cell	50
car insurance	60
food	150
credit cards	60
auto expenses	50
total	1974

net income 2000
equals surplus of 26

Question....should I show a deficit of 264 which would really mean that if they lowered the payment to 775 that i could afford it or do they expect to see a surplus?

[julier883]

My sister in law works for a salon, where she gets paid cash. Does anyone know if a letter from the owner stating her gross and net income will work as proof of income?

[davephx]

Will still need tax returns that support the income from prior years.

For current years required I believe to report and without on certain amount for tips at least in restaurants. They would I assume want those reports. Income has to be verified.

[davephx]

Use the modified lower amount and have the small surplus