Debt Ratio for Loan Mods - Loan Modification Forum

anteater · 08-05-2009, 11:32 AM

What debt ratios are lenders accepting for loan mods? For mortgage only and for total debt (loan + car + credit cards). Is this something I should as B of A myself? I just want to get a heads up before applying for a mod, to see if I can be proactive.

Medora · 08-05-2009, 11:37 AM

Hi,
The general rule is 40-65% DTI before loan mod. But there seems to be other factors with BofA, such as amount of arrears (needs to be under $25K), income left over after debts and living expenses (shouldn't be too much or too little--around $500+/- I'm told).
The reps are really a mixed bag--some will give you a lot of good info, others really just mess things up.
Still going through it myself, hope to have it all resolved soon!
Good luck and hope this helps.

08-05-2009, 11:32 AM	#1 (permalink)
anteater Member Join Date: Aug 2009 Posts: 8 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Debt Ratio for Loan Mods What debt ratios are lenders accepting for loan mods? For mortgage only and for total debt (loan + car + credit cards). Is this something I should as B of A myself? I just want to get a heads up before applying for a mod, to see if I can be proactive.

08-05-2009, 11:37 AM	#2 (permalink)
Medora Senior Member Join Date: Jul 2008 Location: California Posts: 34 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Debt Ratio for Loan Mods Hi, The general rule is 40-65% DTI before loan mod. But there seems to be other factors with BofA, such as amount of arrears (needs to be under $25K), income left over after debts and living expenses (shouldn't be too much or too little--around $500+/- I'm told). The reps are really a mixed bag--some will give you a lot of good info, others really just mess things up. Still going through it myself, hope to have it all resolved soon! Good luck and hope this helps.

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