GMAC MHA Loan Mod & rental income ?

[Positive]

Hello,

I originally submitted a loan mod application back in late April, which was denied because of sufficient funds (incorrectly calculated because of rental deposits). I was advised by loss mit to resubmit with corrected numbers. I faxed in on May 19th (not actually "received" until the 23rd.) I periodically checked in and for some reason this whole time customer service has never actually seen this 2nd application, but when I speak with loss mit they do see it (not sure why this is).

I have waited the 60 working day turn around time they continually quoted me over the past 90 days. After this time expired I called and loss mit said they were sorry that they never looked at it and that the information is outdated so I should resubmit. I have been trying to find a way to expedite this since I have already waited 60 working days, but they just keep saying to resubmit (which I will then be at the back of the line again). Does anyone know a contact I could use (rhode island home) or how to get them to listen?

My other question is regarding the rental income. I actually receive less income from the rental than the mortgage is let alone all the other bills so it is actually a loss (as shown on my schedule E form). GMAC is telling me that I am below the required 31%. This is due to the rental income being considered but the mortgage, insurance, etc is not backed out. Is this actually how it is supposed to be considered? Or should I just be claiming a negative income on the property and not bother to say just what I receive?

Thanks for the help and any current contacts that may be useful at GMAC. I should mention that we are current as of now, but have no savings and will be behind bu October 1st at the latest. We are trying to be proactive, but I am getting a severe run around with GMAC.

Thank you!!

[Moe Bedard]

Hello Positive and welcome to LoanSafe.org!

OK, I am going to be honest as to why I feel you were most likely denied and I am going to quote you.

I should mention that we are current as of now

That is probably your answer right there and it is rental. Two negatives in trying to obtain a loan modification. But, stay positive because I have seen many homeowners get modifications. However, may were late, much later than 30 days and they had to let their credit suffer because it was their reality. Many had attorneys that helped on those and some did do them on their own.

[Positive]

Thank you for the reply. Do you know at least if rent coming in should be backed out (i.e. mortgage of the rental property deducted) by the rental mortgage to show a negative income, or does the HMA loan mod program only count the rent coming in against the 31%?

[Positive]

I have a little more information that may help other people and hopefully others can provide more expertise. I was denied this second time due to my Front end DTI ratio being under 31%. It is that way because GMAC includes my rental income but not the PITIA from that property. The HMA loan modification information that I have looked through at financialstability.gov only states the the front end DTI ratio is to be calculated from PITIA to gross income. It does not state that the PITIA is only from one mortgage. Is this the proper way to calulate the front end DTI, or should it only include the PITIA from the loan being serviced and not the rental property loan?