Self Employed and trying for a modification

[puglug]

I've been reading here for a while. Wondering if anyone is in my situation or has the same servicer as I do. I've got my loan through a servicer called SPS Servicing and looks like Credit Suisse owns the loan. Does anyone go through SPS Servicing? Anyone have Credit Suisse holding your loan? I am looking to do a modification on our loan.

2 1/2 years ago, we got a 5 year arm at 8.35% interest rate. When I took the loan, I planned on re-fi within those 5 years. Now, I'm stressing that we won't be able to re-fi because things have changed and I got the home loan on a stated income being self-employed. We are a young, small business of about 4 years old. Banks now want 2 years of income taxes that show a lot of income to qualify for a 342K home loan. Our tax returns bottom line don't show all of our earned income because we invested most of our profit right back into the business for the first 3 years. Our house was purchased for 342K and now is worth 200K. SPS is offering to write down the mortgage if I can get a loan backer. Trying to get a bank to take the loan is almost 100% NO WAY!! Is anyone else in my position of being self employed and not able to prove what you made? Any having luck or no luck with a modification?

I have had the house for 2 1/2 years and never missed a payment. I have no second mortgage.

Andrea

[Moe Bedard]

Hi Andrea,


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


Have you tried to ask SPS for a loan modification instead of a short refi, or will it not help you if you are not able to have the short payoff, but rather a rate reduction and term extention of the current loan to lower your payment?

[puglug]

SPS said that they would don't modify the loans unless it's a freddie or fannie loan. However, they will re-write the loan if I can get a loan from a lender. The original loan is 342K and the house is worth 200K. They said they would accept the write down no problem. But as far as them doing anything for me, I don't think so.

Andrea

[Moe Bedard]

That may have been before they received the guidelines on Wed. the 4th...........you would only have to have Fannie/Freddie backed loans for the refi............not for the modification...........


You may want to try again and see if they have the new guidelines..........
http://www.treas.gov/press/releases/...guidelines.pdf


If you are not getting anywhere with loss mitigation...........you may want to see if the ombudsman can help..........


SPS
Loss Mitigation:
888-349-8968

SPS
Consumer Ombudsman
1-888-818-6032



Have you tried looking through the list of approved H4H FHA lenders.........if there is one near you...........they may be able to see if you qualify for the type of loan that you are trying to get...........

http://portal.hud.gov/pls/portal/doc...(01-09-09).PDF

[puglug]

Thank you ***. I'll give it a try and post here if I have any luck.

Andrea

[puglug]

Just wanted to post an update on my situation. I called SPS and filled out the paperwork for the loan modification. I talked to them today and they said as it stands, I am not eligible for a loan mod because of my debt to income ratio and the amount owed on the house. So next step they are going to do is access the house market value and then see if a modification would work. I'll let you all know what happens.

Andrea

[puglug]

Just found out that I was turned down for modification from SPS. They did a cost assessment on my house to see if I would qualify if the house was worth less. It is worth less. Original loan for 342,400. New value of $250,000. I still can't qualify because I don't have enough income. My loan payments right now are 2,883.00. She told me that even if I did qualify for the mod, my loan amount would go up to $3,000 a month and I would need to make $9,000 a month in wages. So now no modification, broker that I contacted said he couldn't find anyone to take my loan as a refi. So now what? Any advise?

Andrea

[Moe Bedard]

if you do not meet the criteria for the new modification program..............then you would need to ask if there are other options for your situation.

[puglug]

SPS said that the same thing as before. If I can get refianced through someone else, they will take the write down to $250,000 and have the new loan provider pay them off. I don't get it. I would take the full 342,000 without a write down if they would only refi me to a fixed 6%. But they won't.

Andrea

[puglug]

Update...I tried again with SPS to mod. They turned me down again because now I guess I have a $800.00 surplus after all business, personal and house payment expenses. They denied me the first time because I was coming up negative each month. Now I'm positive and still no mod. I asked SPS what the magic number is. Is it to come out with $0 at the end of the month? So I said well add $800.00 in an expense somewhere and then tell me if I qualify and she wouldn't do that. I'm so frustrated I'm thinking of hiring a lawyer to get in deeper to SPS because all I get is a customer service rep who tells me I don't qualify. I feel like this is such a scam. I told them that I am not asking for a write down on the loan. All I want is to get a fixed rate at 6% on a 30 year loan. They would rather write down the loan from 342K to 250K. But then they try their best to keep me from qualifying.

[puglug]

Also, both numbers that were suppose to go to someone who can help assist more than just a regular sales rep, go directly to the sales reps.

SPS
Loss Mitigation:
888-349-8968

SPS
Consumer Ombudsman
1-888-818-6032

[Moe Bedard]

Andrea,


If all you are trying to do is to get a fixed low rate...........and if this is the only property that you own.........you can try going through NACA instead and see if they are able to help...........they are a HUD approved counseling agency and the services for their Home Save modification are free..............
here is the link for the info...........
https://www.naca.com/refinance/refinanceTenStep.jsp

[puglug]

Thanks ***, I'll look into this avenue.

Andrea

[baileys dad]

Hello puglug,
NACA was able to work with me and I am self-employed...they wanted several months of bank statements to show cash flow. I don't know if it's working or not, my modification has been at Litton for only two weeks thus far....

[puglug]

Baileys Dad,
Thanks for sharing your experience. I actually signed up with them at the last time I posted. I have a meeting with them on 4/4/09. So we will see how things go.

Andrea

[Dan Bailey]

Good luck Andrea, Hang in there!