Aurora Loan 1st and 2nd- Need Help - Loan Modification Forum

WeNeedHelp · 12-30-2008, 01:18 PM

Our mortgage is in my husband's name. We obtained it when my income was much higher than it is today, although only his name is on both the 1st and 2nd which are both with Aurora.

We very foolishly bought this house and financed through the builder with the assumption that the next day we could refinance for regular terms. I was a 1099 contractor at the time and didn't have two full years docs for income. Our credit scores were 780+ at this time. Surprise, the market tanked and we couldn't finance as we were upside down within one day of closing.

Fastforward two years, my business went under and I now have documented income oh and I'm pregnant and due in May.

We were told by a realtor to short sale our house since we are upside down, but we really love our house and would like to stay here. We could afford it if we had normal interest rates.

Get this, our interest rates. 1st is 7.75% and will adjust in about 1 year. Our second is 15.95% and is FIXED. YIKES!

For the loan mod/financial worksheet for Aurora. Do we need to only show his income since the loan is in his name only? Or should we include both knowing in May we will have the expense of day care on top of everything?

I read that the worksheet needs to show a 20% surplus each month. Is this with the existing mortgage and the existing rate and terms or with no mortgage in the expense or with a new realistic mortgage payment? Why would they approve a loan modification if you showed a 20% surplus with your existing loan terms? Shouldn't it show financial hardship?

Thanks for reading my lengthy post. I appreciate all your help and advice!

Moe Bedard · 12-30-2008, 02:02 PM

Hi WeNeedHelp,

Welcome to the forum and thank you for joining................

The financial questions you would need to go over with a rep from ALS......as it is their investors criteria. Call and see if you can start the process on both loans, with a rate like that on your second it would seem that even a nice drop in that one would lower a payment pretty significantly...........that is one high rate.......

Call ALS to go over the financials and get the process started....
Home Retention Group
1-866-521-3828

Please keep us posted on your progress.........

12-30-2008, 01:18 PM	#1 (permalink)
WeNeedHelp Junior Member Join Date: Dec 2008 Posts: 1 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Aurora Loan 1st and 2nd- Need Help Our mortgage is in my husband's name. We obtained it when my income was much higher than it is today, although only his name is on both the 1st and 2nd which are both with Aurora. We very foolishly bought this house and financed through the builder with the assumption that the next day we could refinance for regular terms. I was a 1099 contractor at the time and didn't have two full years docs for income. Our credit scores were 780+ at this time. Surprise, the market tanked and we couldn't finance as we were upside down within one day of closing. Fastforward two years, my business went under and I now have documented income oh and I'm pregnant and due in May. We were told by a realtor to short sale our house since we are upside down, but we really love our house and would like to stay here. We could afford it if we had normal interest rates. Get this, our interest rates. 1st is 7.75% and will adjust in about 1 year. Our second is 15.95% and is FIXED. YIKES! For the loan mod/financial worksheet for Aurora. Do we need to only show his income since the loan is in his name only? Or should we include both knowing in May we will have the expense of day care on top of everything? I read that the worksheet needs to show a 20% surplus each month. Is this with the existing mortgage and the existing rate and terms or with no mortgage in the expense or with a new realistic mortgage payment? Why would they approve a loan modification if you showed a 20% surplus with your existing loan terms? Shouldn't it show financial hardship? Thanks for reading my lengthy post. I appreciate all your help and advice!

12-30-2008, 02:02 PM	#2 (permalink)
Moe Bedard Founder Join Date: Aug 2007 Location: Southern California Posts: 16,887 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Aurora Loan 1st and 2nd- Need Help Hi WeNeedHelp, Welcome to the forum and thank you for joining................ The financial questions you would need to go over with a rep from ALS......as it is their investors criteria. Call and see if you can start the process on both loans, with a rate like that on your second it would seem that even a nice drop in that one would lower a payment pretty significantly...........that is one high rate....... Call ALS to go over the financials and get the process started.... Home Retention Group 1-866-521-3828 Please keep us posted on your progress......... __________________ Moe Bedard Founder LoanSafe.org "America's #1 Home Loan Forum" LoanWorkout.org "America's # Loan Modification Blog" Get My FREE Loan Modification E-Book \| Please donate to LoanSafe.org \| Loan Modification Training For Attorneys \| Rate Your Mortgage Servicer The comments by me and the materials available at this web site are for informational purposes only and not for the purpose of providing legal advice. Most of the information you find here is easily available on the internet. You should contact your attorney to obtain advice with respect to any particular issue or problem. The opinions expressed at or through this site are the opinions of the individual author and may not reflect the opinions of the firm or any individual attorney. Please Read our Privacy Policy and Legal Disclaimer Here.

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