not behind w/ ASC can I get a Loan Mod?

[FrankC]

I have not yet contacted ASC about a loan mod, will I be denied because I am current? I cant refinance to get my 2 loans rolled into 1 because I am upside down. Zillow has my home valued @ 146,000, I owe 296,500.
ASC holds my 1st mortg. 264,000 @ 6.75% my payment is 1994.95.
Green Tree holds my 2nd 32,500 @ 9% my payment is 283.52.
both are interest only loans locked in at 10 yrs.

I have great credit if that has anything to do with the process and i have never been late in making a payment as well.

The loan is under my name only, my wife is on the title but not on the loan. Will they only look at my finances only or will they combine my wifes as well? When calculating all our bills & expenses we are left with 200-300$ at the end of the month (making min. payments of course). Will this hurt my chance since I am able to a little cash left over?

[Moe Bedard]

Hi FrankC,


Welcome to the forum and thank you for joining..........

These are what most lenders consider to be generally acceptable hardships....

1. Loss of job or reduction in income
2. Death of the homeowner, spouse or family member
3. Illness of homeowner or family member
4. Divorce or separation
5. Forced job relocation by employer
6. Adjustable rate reset-payment shock

The best way to set up a hardship letter..........

* First, describe the hardship and the circumstances that caused it
* Explain what steps have been taken to correct the situation
* Provide the lender with your plan to get back on track and stay there
* Assure the lender that you are a responsible homeowner who just needs a second chance and that you are very motivated to save your home



The modifications given are up to the investor on the loan.......you would need to contact ASC and see what options there are from the investor on your loan............
ASC ART Team
1-866-398-7569

[FrankC]

Thanks ***, I still have not contacted ASC. I'm just afraid that because of the extra income I will not be given a shot at a loan mod. A couple of items that I did not provide was that my wife was informed that over 180 people in her school district will be layed off, my wife was hired last year and they go by senority. I also was informed that lay offs will start, but its unlikely that I will be a part of that. However, working 10 hour days have stopped the past 2 weeks. Will they tell me to try again when my wife gets laid off? I just want to be ready for when my wife does get laid off and i wont have to miss a payment. Also in the meantime, should i increase my credit card payments? I am making the min. payments on them. I dont see me paying off 2,000$ on 1 card 20$ a month any time soon. I have many cards that are that way. Also, the 200-300 surplus i have at the end of the month i dont see it. I have 3 kids 3 yr, 6yr &12 yr old i spend that on them on various items. How can I show that as a bill without any paper to back that up?

[Moe Bedard]

with expenses like groceries, gas, and necessities............they really don't have a way of double checking that..............so they just average what they think it should be for a family of five...........so you could put some in those categories...............

Since we don't have the formula that each investor is looking for...........the surplus of 2-300 might be o.k. with your investor......if they say it is too much............call back if your wife loses the income and let them know that you would need to submit updated financials.

[FrankC]

A co-worker told me today that we have access to a lawyer free of charge. The lawyer told him that since his wife was not on the loan they cannot ask for her income. Or should I say he shouldnt give them her income because she is not on the loan. Is this true? I'm curious about this because my wife is not on our loan. thanks.

[Moe Bedard]

For a modification they ask for household income and household expenses.........if he is going to not use his wife's income because she is not on the loan........that is entirely up to him.....if you want to do the same, and submit the financials without your wife's income, that is entirely up to you..............most need to show the extra income just to be able to get an approval to keep their house.
Modifications have a different criteria than loans...........

[FrankC]

Does ASC collect for other investors besides Wells Fargo?

Am I right to assume that under the Presidents new housing plan that I will not qualify? I owe about 150,000 more than what my home is worth at this time. I

[Moe Bedard]

the final guidelines will be out on March 4th so we will no more at that time.