My turn for Urgent ??

[daytona1]

Hello:

Long story short I have been working with my lender for several months on a Mod and after getting run around and calling them on much incorrect info it looked like we were getting somewhere...I do NOT escrow taxes or insurance and paid 1st six months of insurance recently...taxes are not due until yr end. The bank Pays 2nd 6 months insurance and all taxes last month after setting up an escrow acct. I'm thinking it looks pretty good...well get a letter that I was Denied for Hamp due to "housing ratio exceeds the requirements as set forth by HAMP". "base in part on consumer credit reports.

Now I have stopped paying all cards recently because I plan to either settle them or Bk them. I have a couple of secured's that I continue to pay as it makes sense on what I owe vs value...not cars. I have a second I stopped paying long ago that is way underwater that will either be settled or Bk'd. (Home sale would not even cover the 1st mtg)

My income is complicated, but I easily qualify for a much lower payment and can cover it. Additionally my wife works but we did NOT income any of her income as she is not on the mtg and due to my complex income the bank told me NOT to include her.

I have read about a back end DTI of over 55% requires counseling...fine and I would be in that camp. However if I settle or bk then the back end is a non event.

My question is can they deny me because of back end based on credit reports and taking nothing else into consideration?

Personally I don't believe the lender is following HAMP nor have they offered anything else. The 1st mtg owns and services the note and it is a jumbo and is just now 90 days late.

I can't call them until tommorrow...what do you all think for next steps other than the obvious?

[davephx]

"housing ratio exceeds the requirements"

I don't understand what exactly they could mean by that! Which of cousre is why you are confused.

For the debt side assuming its NOT FHA, the backend DTI could be a problem with the NPV Test but that can be offset probably if far enough underwated.

It could also mean income not high enough.

Gross income x 31% =piti
But have to deduct taxes and insurance to get net pi which has to amortize at 2%/40 years assuming no forbearance.

[daytona1]

[QUOTE=davephx;148829
Gross income x 31% =piti
But have to deduct taxes and insurance to get net pi which has to amortize at 2%/40 years assuming no forbearance.[/QUOTE]

It meets the 2%/40yr...It has to be an NPV issue or them using the wrong inputs.