An Update on our story

[bobbitt]

i am unemployed mortgage processor who plans on being a stay at home mom for quite awhile into the future. My hubby has a stable job with 3k/month income and bonuses & commission, but he just started. So i believe we can only use the base salary for at least a year. House & most of the debt is in my name. About 500/mo in his name. We have good equity (about 40K) and about 625's on credit. No lates on mortgage as of yet. Can we refi anywhere? FHA says DTI is too high. Are there any subprimes left?

Thank you all,
JB

[Moe Bedard]

Hi bobbit,

Unfortunately you will have to go to a mortgage broker forum for this question..........this forum will not be able to give that sort of advice or referals..........

[bobbitt]

thank you. i am pursuing modification as well and this site has been extremely helpful.

[Moe Bedard]

Well if you would like help on the modification for your situation just go to the Tell us Your Story section and post your story there..........unless it is a CW or Chase or Option One............then go to that section and tell your story and we can try to assist..........if you would like.............

[bobbitt]

I used to be a mortgage processor (a good one, I promise) and my company closed it's doors in January. Since then we have managed to keep up with our payments (we are on an ARM resetting in July) with savings, budgeting, and unemployment income. We applied for a refinance with Chase and got denied, we do not qualify for FHA (DTI issue).

I tried to email Moe for a little advice, but it wasn't answered. I know, everyone thinks mortgage processors are evil. Sorry to inform you, we are just people too, and I for one couldn't foresee the mortgage crisis and we certainly didn't decide NINA loans were a good idea.

In addition, we were also denied a modification with ASC - however the financial information in the denial letter wasn't right. Has this happened to anyone else? I have been treated well by ASC so far, with the a few exceptions. We fell behind in May and we are in a repayment plan that will work for us and get us through the next six months. So hopefully the future will bring similar mild resetting ARMS we can handle until we can refi with hubby's credit (since mine is going to go down the tubes pretty soon). I am going to substitute teach in the fall to help out, but we probably can't afford to keep up all the credit-reporting debt on my credit report. My husband just got a good job, base+commission, but no one will count the commission until he's been at it a year.

If anyone has any thoughts or ideas, they would be appreciated.

Thanks for reading, it does feel good to get it out

Bobbitt

[wtbdj]

I don't think everyone thinks badly of mortgage processors. My sister has helped us with all of loans and I know she did not see this coming any more than we did.
As to your question about the financial information not being right.....what do you mean by that? Can you elaborate?

[bobbitt]

Sure-they said our income was 2311 dollars, when really it was 3000.00 per month. They said our car payment was 700 when really it was 450 - then they denied it based on these issues.

[bobbitt]

Sorry, I am new to posting I mostly lurk. That very first post was from May. I tried to post a new thread but it somehow got stuck onto my old one. crazy.

[RudyJay]

Hi Bobbit..

Have you checked the success stories about ASC?.. rj

[bobbitt]

i sure have rj. They are inspiring. Right now we are OK - we are in a forbearance we can afford for the next six months until our next adjustment. I think I can apply for the modification while we are in our forbearance and hopefully avoid the next rate adjustment. I just get discouraged because everyone says ASC is tough, and my credit will be worse then then it is now. Thank you!

[bobbitt]

i got a new job pretty happy about that. No longer unemployed, and hubby's job is going great. We are still on our ARM which has adjusted once. We are in forbearance and we can afford the payments for now. Unfortunately, my being unemployed and us getting too far in over our heads in debt has meant we are behind on most of our debt. The important stuff (the forbearance plan, the car) we are OK on.

Our plan is to pay off our old debt ASAP (small credit cards & medical bills mostly), then clean up our credit as best we can. We want to be debt free 'cept for the mortgage after all this hub-bub. Hopefully in about a year to 18 mos, we can refi out of the ARM. with luck, our adjustments will remain modest.

I did apply for one modification with ASC before the forbearance plan. We were denied- i didn't have the job then. Now i have the job, but the credit is toast. It's just always something. Luckily hubby's income should be steadily yet modestly increasing every year. Does anyone know the extent to which they count other debts on your credit report when reviewing for a modification?

I just wanted to share in case any of you members had some good ideas or thoughts for us. This isn't going to be a quick "we fought, we won" deal. This will be years in the making, and will probably end up in a hard-fought-for-refi but my husband and I feel it's worth the fight. We have 50K in equity in our home, and hopefully more when things turn around. On top of that, we heart our house

thanks for reading, it's wonderful to have this forum to vent.

bobbitt

[Moe Bedard]

Hello Bobbitt!

It looks like things are going much better financially for you now and this would be the perfect time to try for a loan modification ASAP.

As far as your debts are concerned, they will look at your total household expenses that are within reason for your situation and income. From a car payment to food and your cell phone are all taken into account. If you make $30k a year and have a $100k mortgage and have $70k in credit cards and $2k a month in payments, that would be "unreasonable" for that income and mortgage. But if it was $10k in credit cards and $500 in payments, then that would be reasonable.

Hope that helps and keep up the good fight!