Can I get a loan mod if my wife resigned from her job?

[mrange25]

We weren't trying to scam the system, we just never saw our son because he was in daycare 12 hours per day and my wife wasn't really making that much money after you factor in commuting costs, wardrobe, eating lunches at work, etc. She resigned to be a stay at home mom and we thought about just declaring bankruptcy and starting over in a 1 or 2 bedroom apartment.

Would we be ineligble for a loan mod in this scenario?

[Maurice Bedard]

It depends if you have enough income coming in. I believe you'd mentioned on another thread that you're on unemployment. But in any event, it would be pretty hard to get a loan modification since she has no job and you are on unemployment. Maybe it is best to just rent an apartment. That way you can afford your shelter and not worry about where you're gonna live.

[imlars]

We weren't trying to scam the system, we just never saw our son because he was in daycare 12 hours per day and my wife wasn't really making that much money after you factor in commuting costs, wardrobe, eating lunches at work, etc. She resigned to be a stay at home mom and we thought about just declaring bankruptcy and starting over in a 1 or 2 bedroom apartment.

Would we be ineligble for a loan mod in this scenario?

The lender asks for proof of your current household income. If your wife isn't working at the time you request a review for a possible modification it shouldn't come into play. If it does, your wife was needed at home to care for your son. Is your son under the age of 3 years? I know in my state, a mother of a child under the age of 3 cannot be forced to go to work. You are essentially dealing with curtailment of income. Your wife's employer did not offer flex time options, and you could not find affordable child care.
Attempt the modification route first. Depending what state you are in, and at what stage of default you are in , you could have plenty of time to find a solution to your problem or next to none. You don't know if they will work with you until you try. Go to the lenders website, as well as makinghomeaffordable.gov to get as much information as you can get. Follow all instructions to the letter. FedEx a copy of your financial package to the lender in addition to faxing it to the fax number they give you. Faxes get lost. FedEx provides online proof of delivery that you can print for yourself. 3-5 business days after you send the package, call the lender and verify reciept of the package. Call for status updates at least bi-weekly. Take notes, document the time, date, number called, employee badge numbers and what was said. Be persistent.
If they deny you for some reason or another, you can file Chapter 13 up to 24 hours prior to the sale date, keep the house, and pursue a loan modification through the bankruptcy dept at the lenders after you file for the BK. You would just need to get a letter of permission from the BK court trustee allowing you to pursue a modification. You have options. You just need to explore them. Knowledge is power.