Credit Counseling Requirement Links - Loan Modification Forum

BobandArlyn · 10-24-2009, 04:42 PM

Lighthouse asked a question about what it is, what's entailed, can you be denied after taking the credit counseling, etc. Thought the info I found about requirement should be included in a special link to be added to by other forum members.

First, this is the definition I found on a HUD approved credit counselor website which does not say you can be denied after taking the counseling. This is their definition: "For those homeowners who owe more than fifty five percent of their monthly income to debtors for all of their combined debts, the mortgage holder must agree to participate in credit counseling in order to form better habits and money management skills."

The HUD Credit-Counseling Requirement of the "Making Home Affordable" Plan (This is an e-zine article that talks about HUD approved credit counseling)

U.S. Department of Housing and Urban Development (HUD) (This is a listing by HUD that is updated often and is by State)

caldwellb02 · 10-24-2009, 05:22 PM

I'm in that group. Mortgage is 60% of gross. A few credit cards, nothing outrageous. My latest denial (through NACA after the STD event) is because of "insufficient income." These people are geniuses.

BobandArlyn · 10-24-2009, 05:28 PM

Makes you want to reply "NO 'CHIT' SHERLOCK! duh, that's why we can't pay!" Rocket scientists they are!

MyHAMP · 10-24-2009, 06:26 PM

Quote:

Originally Posted by caldwellb02

I'm in that group. Mortgage is 60% of gross.

I guess they mean 55% or more DTI after they modified the loan. Otherwise, almost anybody would be required to do that counseling.

IMO, this counseling is total nonsense. First, you have to have a HARDSHIP to be approved for HAMP in the first place - and the counseling is for your lack of ability to handle money.

Hmm, ever thought of the idea that your HARDSHIP brought you to 55% DTI or more in the first place? So a HARDSHIP means I can't handle my finances? I guess I learned something new today.

This counseling only complicates the entire process and is a waste of money!

litehouse01 · 10-24-2009, 07:34 PM

MyHAMP..thats what I was thinking it had to be the modifed payment or the majority would fall into this catagory....if it were the modified payment I would be ok but not with the original mortgage payment..And if they are basing it on original mortgage payment then what can or will a credit counsler say about that? Loss of income is what got us all here to begin with........

caldwellb..they denied you????? For insufficent income didn't give the chance for credit counseling?

davephx · 10-24-2009, 08:20 PM

Its your total debt payments on all debt that is over 55% you only have to "agree" that you will get credit counseling. It is not that big of a deal. I've already had two done, mostly its budget related. Most folks that go to HOPE go thru it before they help you with mod at least that was my experience.

My action items include:
Utilities: Enroll in a budget plan
Stop using credit cards
Open and review all mail (for debts you owe)
Get legal advice if you should be paying on your credit cards
Treat housing as your highest priority
Contact Mortgage company to discuss options to avoid foreclosure.

Not exactly rocket science and nothing is required that you do, only suggestions.

MyHAMP · 10-24-2009, 08:50 PM

It's not that I have a problem with seeking counseling - we actually met with a counselor already - just in case something goes wrong with the HAMP. But as you said, it's not a big deal so it's questionable if it does any good.

It just sounds like an advice from your doctor who's treating your broken leg that you should avoid accidents in the future....

wayward1 · 10-24-2009, 10:34 PM

Quote:

Originally Posted by MyHAMP

It just sounds like an advice from your doctor who's treating your broken leg that you should avoid accidents in the future....

MyHamp, too funny, yet true...

Riley18 · 10-25-2009, 05:16 AM

I'm thinking of going to HOPE in order to start paying the cc debt through them. I've heard they have a program where they take a set amount from you each month and distribute it to the companies. It usually takes 5 years to pay off the debt with them.

I was planning on doing this AFTER a modification, but doubt the bank will even bother offering me one. If I am going to lose the house anyway, it is probably best to be proactive with the debt I had let go in order to keep it.

My biggest worry today is being able to rent a house. The banks control rents at apartments, but I'm not sure about houses. I live in a small town, and am not looking forward to getting turned down over and over for a rental. It is hard to believe that 5 years ago I wasted so much money on a down payment for this place.

BobandArlyn · 10-25-2009, 08:08 AM

[QUOTE=Riley18;143015]My biggest worry today is being able to rent a house. The banks control rents at apartments, but I'm not sure about houses. I live in a small town, and am not looking forward to getting turned down over and over for a rental. QUOTE]

Riley, I've got to tell you that in the beginning of our trek, I purposely went on Craigslist and wrote to various house rental management companies and told them our credit cards being slammed by those greedy companies causing our Chapter 13 and now struggling to keep our home and wondered about being able to rent homes. I picked a home for each management company and you know what I was told? "We can work with you". Not one turned us down.

What is going on now to us, I believe, will be considered lightly when we go to look for rentals based on the responses I received from my inquiries.

Arlyn

Riley18 · 10-25-2009, 08:55 AM

[QUOTE=BobandArlyn;143037]

Quote:

Originally Posted by Riley18

My biggest worry today is being able to rent a house. The banks control rents at apartments, but I'm not sure about houses. I live in a small town, and am not looking forward to getting turned down over and over for a rental. QUOTE]

Riley, I've got to tell you that in the beginning of our trek, I purposely went on Craigslist and wrote to various house rental management companies and told them our credit cards being slammed by those greedy companies causing our Chapter 13 and now struggling to keep our home and wondered about being able to rent homes. I picked a home for each management company and you know what I was told? "We can work with you". Not one turned us down.

What is going on now to us, I believe, will be considered lightly when we go to look for rentals based on the responses I received from my inquiries.

Arlyn

Thank you for letting me know what you found out about rentals. It makes me feel better. I have never rented a house or apartment before because we have had a mortgage for one house or another for 30 years now. We will have to find something that takes pets because that is not negotiable, but otherwise, I think it might be liberating to not worry about repairs and taxes. I won't have to pay the ridiculous Florida property tax anymore. I'm trying to look on the bright side

BobandArlyn · 10-25-2009, 09:48 AM

oh yeah, I also said we had a 60 pound trained dog and 3 cats and asked about paying extra for the animals or doing special work needed around the yard, etc., and they ALSO said that would be doable even though it said NO PETS in the advertisement.

THEY JUST NEED INCENTIVE!

10-24-2009, 04:42 PM	#1 (permalink)
BobandArlyn Senior Member Join Date: Sep 2009 Location: Santa Rosa, CA Posts: 374 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Credit Counseling Requirement Links Lighthouse asked a question about what it is, what's entailed, can you be denied after taking the credit counseling, etc. Thought the info I found about requirement should be included in a special link to be added to by other forum members. First, this is the definition I found on a HUD approved credit counselor website which does not say you can be denied after taking the counseling. This is their definition: "For those homeowners who owe more than fifty five percent of their monthly income to debtors for all of their combined debts, the mortgage holder must agree to participate in credit counseling in order to form better habits and money management skills." The HUD Credit-Counseling Requirement of the "Making Home Affordable" Plan *(This is an e-zine article that talks about HUD approved credit counseling)* U.S. Department of Housing and Urban Development (HUD) *(This is a listing by HUD that is updated often and is by State)* __________________ __________________ Reps from loansafe needed for all states! If you are reading this thread, please join us in our effort to start mass campaigns on behalf of loansafe.org members. All ideas and input are welcome. See Thread title "Reps from loansafe needed for all states!"

10-24-2009, 05:22 PM	#2 (permalink)
caldwellb02 Senior Member Join Date: Nov 2008 Location: Northern CA Posts: 1,785 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Credit Counseling Requirement Links I'm in that group. Mortgage is 60% of gross. A few credit cards, nothing outrageous. My latest denial (through NACA after the STD event) is because of "insufficient income." These people are geniuses.

10-24-2009, 05:28 PM	#3 (permalink)
BobandArlyn Senior Member Join Date: Sep 2009 Location: Santa Rosa, CA Posts: 374 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Credit Counseling Requirement Links Makes you want to reply "NO 'CHIT' SHERLOCK! duh, that's why we can't pay!" Rocket scientists they are! __________________ __________________ Reps from loansafe needed for all states! If you are reading this thread, please join us in our effort to start mass campaigns on behalf of loansafe.org members. All ideas and input are welcome. See Thread title "Reps from loansafe needed for all states!"

10-24-2009, 07:34 PM	#5 (permalink)
litehouse01 Senior Member Join Date: Sep 2009 Posts: 497 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Credit Counseling Requirement Links MyHAMP..thats what I was thinking it had to be the modifed payment or the majority would fall into this catagory....if it were the modified payment I would be ok but not with the original mortgage payment..And if they are basing it on original mortgage payment then what can or will a credit counsler say about that? Loss of income is what got us all here to begin with........ caldwellb..they denied you????? For insufficent income didn't give the chance for credit counseling?

10-24-2009, 08:20 PM	#6 (permalink)
davephx Senior Member Join Date: Jul 2009 Posts: 1,175 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Credit Counseling Requirement Links Its your total debt payments on all debt that is over 55% you only have to "agree" that you will get credit counseling. It is not that big of a deal. I've already had two done, mostly its budget related. Most folks that go to HOPE go thru it before they help you with mod at least that was my experience. My action items include: Utilities: Enroll in a budget plan Stop using credit cards Open and review all mail (for debts you owe) Get legal advice if you should be paying on your credit cards Treat housing as your highest priority Contact Mortgage company to discuss options to avoid foreclosure. Not exactly rocket science and nothing is required that you do, only suggestions.

10-24-2009, 08:50 PM	#7 (permalink)
MyHAMP Senior Member Join Date: Oct 2009 Location: Florida Posts: 724 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Credit Counseling Requirement Links It's not that I have a problem with seeking counseling - we actually met with a counselor already - just in case something goes wrong with the HAMP. But as you said, it's not a big deal so it's questionable if it does any good. It just sounds like an advice from your doctor who's treating your broken leg that you should avoid accidents in the future....

10-25-2009, 05:16 AM	#9 (permalink)
Riley18 Senior Member Join Date: Aug 2009 Location: Florida Posts: 196 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Credit Counseling Requirement Links I'm thinking of going to HOPE in order to start paying the cc debt through them. I've heard they have a program where they take a set amount from you each month and distribute it to the companies. It usually takes 5 years to pay off the debt with them. I was planning on doing this AFTER a modification, but doubt the bank will even bother offering me one. If I am going to lose the house anyway, it is probably best to be proactive with the debt I had let go in order to keep it. My biggest worry today is being able to rent a house. The banks control rents at apartments, but I'm not sure about houses. I live in a small town, and am not looking forward to getting turned down over and over for a rental. It is hard to believe that 5 years ago I wasted so much money on a down payment for this place.

10-25-2009, 08:08 AM	#10 (permalink)
BobandArlyn Senior Member Join Date: Sep 2009 Location: Santa Rosa, CA Posts: 374 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Credit Counseling Requirement Links [QUOTE=Riley18;143015]My biggest worry today is being able to rent a house. The banks control rents at apartments, but I'm not sure about houses. I live in a small town, and am not looking forward to getting turned down over and over for a rental. QUOTE] Riley, I've got to tell you that in the beginning of our trek, I purposely went on Craigslist and wrote to various house rental management companies and told them our credit cards being slammed by those greedy companies causing our Chapter 13 and now struggling to keep our home and wondered about being able to rent homes. I picked a home for each management company and you know what I was told? "We can work with you". Not one turned us down. What is going on now to us, I believe, will be considered lightly when we go to look for rentals based on the responses I received from my inquiries. Arlyn __________________ __________________ Reps from loansafe needed for all states! If you are reading this thread, please join us in our effort to start mass campaigns on behalf of loansafe.org members. All ideas and input are welcome. See Thread title "Reps from loansafe needed for all states!"

10-25-2009, 09:48 AM	#12 (permalink)
BobandArlyn Senior Member Join Date: Sep 2009 Location: Santa Rosa, CA Posts: 374 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Credit Counseling Requirement Links oh yeah, I also said we had a 60 pound trained dog and 3 cats and asked about paying extra for the animals or doing special work needed around the yard, etc., and they ALSO said that would be doable even though it said NO PETS in the advertisement. THEY JUST NEED INCENTIVE! __________________ __________________ Reps from loansafe needed for all states! If you are reading this thread, please join us in our effort to start mass campaigns on behalf of loansafe.org members. All ideas and input are welcome. See Thread title "Reps from loansafe needed for all states!"

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