NACA Affordability Budget?

[whattodo]

Hi,

Does anyone have the information NACA asks to determine the affordability budget? How do they determine expenses? I mean, a family of 4 will have more expenses than a family of two, and some may spend much more in gas with long commutes, child care, etc.

Anyone have what they ask for? I'd like to plug some figures in to see if going through the process is worth it, because 31% of my gross isn't going to cut it.

Thanks

[Evan Bedard]

Anyone have what they ask for? I'd like to plug some figures in to see if going through the process is worth it, because 31% of my gross isn't going to cut it.

Welcome and thanks for joining the forum.

If your mortgage payment does not exceed 31% of your gross monthly income it is very important you apply for a traditional in-house loan modification and not the HAMP program.. For HAMP the main requirement is for your 1st mortgage payment to exceed this amount. For any type of modification even if you apply without the assistance of NACA you must list your monthly expenses whether it be food, gas, child care, etc, and this will give your servicer a much better look at your actual financial situation.. The Affordable Budget provides an analysis of your current financial situation. If completed accurately and completely, it will show the mortgage amount you can afford.

What hardship has occurred that is making your mortgage payments unmanageable?

[whattodo]

Thanks for responding. Was unemployed for an extended time, now working again but making quite a bit less than before. I have stopped paying CC's and will have to file BK, but want to keep my house. I'm current on both my mortgages and never missed a payment.

I'd be happy to keep my payments the same if I could get my HELOC at a fixed rate.
1st - Chase $89K
2nd - Chase HELOC - $114,000 (4 years ago I owed nothing on the HELOC)
Value of home $205,000 - recent CMA and online evaluation

HELOC has 4% rate i/o right now, but that will change go up at some point. Also, it will convert to a 20 year with principle and interest in about 4 years, which will make it impossible to pay. I'm thinking forward because this ch 7 BK will prevent me from getting relief when the HELOC changes.

[Evan Bedard]

HELOC has 4% rate i/o right now, but that will change go up at some point. Also, it will convert to a 20 year with principle and interest in about 4 years, which will make it impossible to pay. I'm thinking forward because this ch 7 BK will prevent me from getting relief when the HELOC changes.

I'm sorry for some reason when you type the percent sign it comes in weird coding.. What interest rate is your HELOC at and is it now affordable?

[whattodo]

Heloc is at 4 i/o right now. That combined with 1st which is fixed at 5 percent, I can do...tight but can do. Once the heloc rate goes up then it is a problem. When the heloc converts to p&i payments for the remaining 20 years, then I'm toast for sure.

[Evan Bedard]

Heloc is at 4 i/o right now. That combined with 1st which is fixed at 5 percent, I can do...tight but can do. Once the heloc rate goes up then it is a problem. When the heloc converts to p&i payments for the remaining 20 years, then I'm toast for sure.

Well filing for BK will not necessarily prevent you from getting assistance on your HELOC.. If your mortgages are protected under the automatic stay all you need is a letter from your BK attorney sent to your lender allowing them to negotiate on the account.. However, the problem you may face is the fact that it is quite difficult to get permanent assistance on a HELOC or 2nd mortgage.. It is possible to get a fixed rate through a mod, but lenders make it very tough and many times will only offer temporary 1-3 year mods on 2nds..

[paradise]

Hi,Does anyone have the information NACA asks to determine the affordability budget? How do they determine expenses? I mean, a family of 4 will have more expenses than a family of two, and some may spend much more in gas with long commutes, child care, etc.Anyone have what they ask for? I'd like to plug some figures in to see if going through the process is worth it, because 31% of my gross isn't going to cut it.Thanks

We too do not have a mortgage payment over 31% of our gross. but we were over-extended with credit card bills, past due bills, car troubles in Fall of 2010 and we fell behind on our mortgage. Long story short - we now owe $32, 000 in arrears but Americas Servicing Company just denied us again for any help - as we have had a modification in the last five years already and they say our financials show we can afford our current monthly mortgage payment. Yes, we can pay our payment at this point - after increasing my hours at work, and getting caught up on other bills. But we do not have any savings or funds to pay the amount in arrears. And our budget is still very tight. Will NACA even look at us if we are not like many of the unfortunate folks in the country that are so upside down in their mortgage? We are probably about even currently. Or if we have the income to pay the current payment but not the money to pay the arrears?? I am not sure what our budget needs to look like in order to get help at this point. Maybe i shouldn't have picked up more hours over the last year - only increasing our income. I am so tired......so distressed about all of this...it has been too long of too many faxes and explanations ....i just want to sleep and breath again.

[Evan Bedard]

Hello Paradise, Even though you are not underwater on your mortgages and you can afford the current payment (just not the arrears) that does not mean you cannot qualify for a loan modification or NACA will not assist you. It just needs to be brought up accordingly and not the same as if you are trying to qualify for a modification under HAMP, which only that program requires your mortgage payment to be above 31% of your gross monthly income to qualify. You need to make sure NACA is well aware of your current financial situation and they need to request a traditional in-house modification to help get your account current (by adding the arrears to the back of the loan) and either deferring some of the new principal as a balloon, extending the term of the loan, or lowering the interest rate so that the arrears will not make your new payment unaffordable..