Help With Loan Modification Bank Statements

[nana1022]

Please bear with me this is my first time.
Hi every one this is my issue. We have a 30 year fix with 10 years interest only of 6.125 and a second with 10.5 rate. My husband has been able to pay the mortgage by himself for the past 3 year. The payment is $4,600 per month. But he can not do it anymore because of the gas price and the lack of overtime at his job. We did not make the July payment and are asking for loan modification. Countrywide Home Loans wants our bank statements but we have about $12,000 life saving in our accounts. We can not use all of this money to pay the mortgage for only 3 months with 3 kids. My question is would having that much money in our account be a problem for us?fficeffice" />>>

[Cat Damiano]

Hi nana1022,

Welcome to the forum and thank you for joining.................

There could be a potential issue with this...........modifications are given in hardship situations only and having 12k in the bank is not showing a hardship..........

Also you might want to ask Countrywide what options are available to you through your investor first because with an interest only loan at 6.125%
if the investor on your loan would require escrows as a part of a modification............your payment will actually increase............
rather than go through the whole process which could take a while........it might be beneficial to you to ask this up front.......

Please keep us posted on your progress............

[nana1022]

Cat thank you for your reply

Do I have to show all my accts? Will they be able to check on the # of accts i have. I just don't see how i can use all my money for only 3mos when it might no help.

[Cat Damiano]

Nana,

You will have to call and ask them what they require.........just check with them on Monday..............they will tell you what you need to fax them and as I said..........they will also tell you if they are even able to modify a rate that low that is interest only............

[Scott Hazlett]

Hi Nana1022,

As Cat said, Welcome. Is the 12K in a normal bank acct or do you have it in some type of retirement situation. That may help make a difference. Cat is correct that if you are showing it in your checking/savings it may be hard to show hardship. Also, before you contact them have a good idea of how much you need to save to afford your home just not your loan. What is your equity position in the property?

[angel83]

I have a similar situation in that I have been getting bonuses inthe past and have set a side these funds for property taxes. I will also incur a large IRS tax bill come April. I factored all this in in my income/expenses. Does that matter that it is sitting in bank waiting for tax bill?

[nana1022]

Scott Thank you for your Q

It all in diffrent saving accts.

[nana1022]

sorry..... the equity position is that we owe $625,000 and right now I am not sure if it will Apprise for that.

[sonvme1]

If your accounts are linked, they will be able to find it. Make sure your accounts have different account numbers, that way your statement will only reflect the amount (and account) you want to show........

[Scott Hazlett]

Angel,

You're doing the right thing by preparing for the future with your tax savings account. The modification process is just a negotiation. IF you choose to declare that account with your lender then explain to them what it's for and that you refuse to get out of one jam with them just to get into another with the state over missed tax payments. Are you in an adjustable rate loan? The real issue is that Fannie and Freddie were asked to relax their guidelines in '03, '04, '05 and so on, allowing people to qualify at the current interest only payment and not properly preparring the unsuspecting public of what was around the corner. Prior to that time most lenders qualified people at the "fully indexed rate" or the future adjusted payment. That's one of the main reasons we are where we are. You prepared for your future with your savings account - the lenders didn't. That's their fault!!!

nana1022,

My main concern for you is how much you need to save on a monthly payment to afford the home. With that low rate and already being an IO loan it may be very tough. Have you thought about attempting to negotiate away your second. If you are negative and can't keep the house then they have lost already since the first loan will collect all their money first. When that runs out...too bad second loan. Second lenders these days are negotiating cents on the dollar when they sense you are in a losing position. looking at your scenario it is probably too early for that play yet but keep it in mind. How much do you need to save?

[nana1022]

the first and second are both with Countrywide Home Loans. I don't understand when you say "How much i need to save?" do you mean on my monthly bill? if so than i need to save about $1000.

[nana1022]

Hi every one this is a different post. Because of the issue we have now with Countrywide Home Loans (post is Help with loan modification bank statement) we were contacted by agent about refinancing our loan. I knew nothing about this company so I have been doing some research about them and I am more confused than when I started. Some information is very very bad and some are good. I don’t want to get a loan that will get us into more trouble than we are in. can any one give us some info. PLEASE.

[Cat Damiano]

nana,

Please just stick with the modification process............there are alot of scam companies that will make contact by phoning and mailing you all sorts of info...........they prey on people and they are very convincing..............