How much income do I need to land a modification?

[KeepHouse]

Would like to modify and keep and wonder what kind of income they need to see?
Also does the debt to income ratio include payment to the second.

Stopped making payments in August 2011, but am prepared to start again.

Selfemployed - income is variable.

PNC has had me send 3 chunks of paper and the latest requests income.
at least one of the loans is fannie mae

PITI first - 1225 (owe 160K to PNC - in loss mitigation now)
Second 245 (owe 35K ish to Chase - don't have a direct contact yet)
Estimated home value 125-150K

It's a duplex - will rental income from the other half count?

THANKS!!!!

[Evan Bedard]

Hey keephouse,

I posted some information for you in your previous thread.

[KeepHouse]

Thank you so much Eric!!! Sorry for posting twice - a move of desperation. Do you know what is the minimum gross or maximum percentage one would get approved for (I understand if you show too little you'll be too high risk)? This month, my income is higher than some and is @ 35% of the PITI not counting the second. It appears, based upon the rules, that I might be in good position for consideration.

************************
The other post is gone, presumably due to duplication of questions, so I'm pasting your answers here for others to benefit from (and for me to find again):

Does the Second loan payment count as part of the PITI to income ratio?

---End Quote---
No your second mortgage will not be factored into the ratio for the modification on your first mortgage. HAMP for example, your 1st mortgage's monthly payment must be above 31% of your gross monthly income to qualify.. Be aware that when you first apply for a loan modification they are going to review your account for this program so it is best to make sure you fit at least all the basic eligibility requirements to avoid wasting unnecessary time..

Below you will find some info on HAMP and the 2nd lien modification program (2mp) associated with it.. Not too many people are approved for the 2mp program but if your second is delinquent as well, and you are underwater on your property, you may want to consider settling your second later.. I will provide links to threads that will show you everything you need to know about settling your 2nd..

To qualify for a modification under HAMP, you must:

-Be the owner-occupant of a one- to four-unit home.
-Have an unpaid principal balance that is equal to or less than:
o 1 Unit: $729,750
o 2 Units: $934,200
o 3 Units: $1,129,250
o 4 Units: $1,403,400
-Have a first lien mortgage that was originated on or before January 1, 2009.
-Have a monthly mortgage payment (including taxes, insurance, and home owners association dues) greater than 31% of your monthly gross (pre-tax) income.
-Have a mortgage payment that is not affordable due to a financial hardship that can be documented.

If you do not meet these guidelines it is important you tell them you want to go for a regular in-house modification.

*You may be eligible for 2MP if you meet all of the following criteria:*
* Your first mortgage was modified under HAMP.
* You must not have been convicted within the last 10 years of felony larceny, theft, fraud or forgery, money laundering or tax evasion, in connection with a mortgage or real estate transaction.
* You have not missed three consecutive monthly payments on your HAMP modification.

*Settle second mortgage:*

http://www.loansafe.org/forum/debt-settlement/37996-strategy-settling-your-2nd.html (Strategy for Settling Your 2nd)Image: https://mail.google.com/mail/images/cleardot.gif
***************

[Evan Bedard]

Thank you so much Eric!!! Sorry for posting twice - a move of desperation. Do you know what is the minimum gross or maximum percentage one would get approved for (I understand if you show too little you'll be too high risk)? This month, my income is higher than some and is @ 35% of the PITI not counting the second. It appears, based upon the rules, that I might be in good position for consideration.

Sorry, I'm not sure why the other post was deleted.. Thanks for taking the time to repost the information from the previous thread.

Yes if your payment is 35% of your gross monthly income you should be in a good position to qualify for a loan mod under HAMP.. Remember you just need to be able to show your payment is above 31% of your gross income..

[KeepHouse]

Hi Evan,
I reapplied for HAMP with my new income and my reapplication is being reviewed. Racing against foreclosure now (date to be set June 3).

I learned today that they ordered an appraisal o 5/25 and wonder, chuckle, if I should cut the grass or not cut the grass. I may not have any control, but wonder- Do I want it to appraise for higher or lower?

if the appraisal is for $135K - $150K and my first and second loans are 160K and 30 K respectively, where do I sit?
Could it be a good sign that an appraisal was ordered? I'm now going to re-start the process with my second loan carrier.
Thanks for any further expertise you can share!!! The goal here - do anything I can to keep my house and get modified.

[Evan Bedard]

I learned today that they ordered an appraisal o 5/25 and wonder, chuckle, if I should cut the grass or not cut the grass. I may not have any control, but wonder- Do I want it to appraise for higher or lower?

if the appraisal is for $135K - $150K and my first and second loans are 160K and 30 K respectively, where do I sit?
Could it be a good sign that an appraisal was ordered?

Great job staying on top of your case and being persistent, I definitely recommend calling in at least once to twice a week for updates on your account. What they ordered is actually called a BPO or brokers price opinion and it is just an exterior valuation of the property to get a rough estimate of its current value, along with other factors such as local comps. I do not think cutting the grass will have much of an effect on their estimate. Being underwater seems to be a better negotiating tool on your 2nd mortgage than your 1st. If you do find your 2nd mortgage is completely underwater they are in no position to pursue foreclosure on your property so I would concentrate on getting your 1st mortgage modified and up to date.