I am posting to document my experience with SunTrust in hopes that it may help others in need of a loan modification.
Here‚€™s my situation:
Home purchased in 11/2006 with 1st loan 7/1 ARM of $226,800 @ 6.125 and 2nd loan 5/1 ARM of $56,700 @ 8.5% both with Suntrust. 1st loan owned by FNM, 2nd by Suntrust.
Current Value is around $280,000 (decent deal to start with + significant improvements).
Current Loan Balances: 1st is $219,545 and 2nd is $53,524.
Current Payments: 1st is $1715 and 2nd is $436.
When we bought the house, our monthly income was $8,700 Gross. That meant a DTI of < 25% (was actually a little lower at the time, but due to insurance increases and believe it or not tax assessment increases the payments are a little bit higher than they were).
I am losing my job, which leaves us with a gross monthly income of only $3,800. Based on $3,800 our DTI is 45% on the 1st loan alone, and 54% on both combined.
This doesn‚€™t consider that I will likely be able to draw unemployment of $1400/mo ( I think).
Anyway, I initially contacted SunTrust back in mid-June. They promptly sent me a letter requesting that I send them additional financial information (Past 2 tax returns including W-2s, Last 2 statements from all bank accounts and last 2 pay stubs.
I have assembled the information and will mail it tomorrow. I also wrote a letter explaining our circumstances, etc.
In the meantime, does anyone have any idea of what I can expect? It seems that Suntrust has a pretty bad reputation around here for dragging their feet on helping people. We have plenty of savings and are in no immediate danger of missing payments, but with the level of DTI and only 1 income, it could become a problem.