31% across the board??????

[ATVTHEO]

I am still trying to find out who was the dummy that devised this formula? 31% of your gross income should be your correct mortgage payment? Okay lets not take into consideration your second mortgage? Okay so a single man making $100000 and a married man with 3 children and a stay at home wife making the same income are held to the same 31%. Wow.................. If the government devised this 31% I can see why are country is in a defiect!!!!!!!!! If the banks devised the 31% I can see why they are going to again come out profitable in a financial economy crisis............ Government gives them bail out money and they can write off any loses due to forclosures........... Thats a win win situation................

Sorry forum I just needed to vent a little......

[SimonSaysSo]

I WHOLEHEARTEDLY AGREE. 31% of your gross income for a home is ridiculous even for the single person making 100K. If you are single making 100K then at least 31% of your income goes to pay taxes. Throw in health insurance and a retirement plan and that is at another 10 to 20%. Throw in the 31% mortgage and you have already burned through 80% of your salary and haven't even put a morsel of food in your mouth or paid for the gas or electricity with which to cook the morsels of food. Net income just seems to be a much more reliable number from which to base the mortgage as it takes into account at least your taxes (which you HAVE TO PAY).

[Sunbeam]

31% of gross income is the delineation for HAMP...if you do not qualify for HAMP, and if you are having financial difficulty meeting your mortgage, other debt obligations then you need to pursue a traditional modification with your lender. Tell them you know you don't qualify under HAMP and you need other considerations...you can do it, but you need to be very very persistent.

[Riley18]

Is it 31% of gross YEARLY income or monthly income? Some of my money comes from extra work which is not reliable. If I do not get called for extra duty then I don't make the money. I was doing the math the other day and it makes a difference of $100 a month.

They came up with 31% of gross, but really a more realistic amount should be no more than 25% of income. This is the first house I have had with a payment of 47% of my gross income. In the past my mortgage payments were always around 20% of my income, and that is why I wasn't in cc debt then. It's like even with 31% of income we will still be barely getting by.

It is not realistic for families because the payment is still too high. Especially since most of us have gotten into high cc debt while trying to pay our original mortgages. Right now though I would be happy to get a modification, but I'm not as hopeful as I was a few months ago.

[Sunbeam]

Originally Posted by Riley18

Is it 31% of gross YEARLY income or monthly income? Some of my money comes from extra work which is not reliable. If I do not get called for extra duty then I don't make the money. I was doing the math the other day and it makes a difference of $100 a month.

They came up with 31% of gross, but really a more realistic amount should be no more than 25% of income. This is the first house I have had with a payment of 47% of my gross income. In the past my mortgage payments were always around 20% of my income, and that is why I wasn't in cc debt then. It's like even with 31% of income we will still be barely getting by.

It is not realistic for families because the payment is still too high. Especially since most of us have gotten into high cc debt while trying to pay our original mortgages. Right now though I would be happy to get a modification, but I'm not as hopeful as I was a few months ago.

That is a good question....I was asked for paystubs for two months....I was also asked for W2s and tax returns from last year. This year my income is actually higher than it was last year....and the way my negotiator worked it, she used my regular paycheck. If I work extra I get a separate paycheck. She did not consider that income. Another reason to be civil to your negotiator once you get one. The rules are not hard and fast. A little hiccup this way or that can make a world of difference.