Is a Loan Modification Possible with limited income

[homeownerinneed]

Hello, thanks for your helpful site. I have read a lot of posts and I am educating myself on the process. Here is our story:

I have two mortgages- Wells Fargo and CitiMortgage. I am self employed, but did not have any income in 2008. My husband is the primary income earner and was laid off from his job in August of 2008. We have depleted savings, and 401K plans. We are not behind on our mortgage or other bills, but the funds have run out at this point.

We are afraid we can not make the February payments. We receive unemployment and child support each month totaling $2,000 in income. Our monthly expenses are over $6,000.
We are both actively seeking employment and our income situation should turn around in the next few months. However, we can not currently pay our mortgage.

Is a loan modification possible with the low income to higher debt ratio? The loan is only in my name, should I only report my debt in the expenses portion of the hardship paperwork? Should I wait until the income situation improves to apply for modification?

Thank you in advance for your help and assistance. I am grateful!

[Moe Bedard]

Hi homeownerinneed,

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


You would need to include all income and all expenses for the household but when the income is not enough to support the expenses by a large deficit...........the investor may have you wait or may be able to offer some sort of special forbearance for 90 days to give that amount of time to establish more income. You will need to call Wells Fargo and and CitiMortgage and ask if this may be an option for you.

Wells Fargo Loss Mitigation
1-877-216-8448

CitiMortgage for LoanSafe members (make sure that you let them know that you are a member here)
1-866-255-3901



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

[nisb4]

I was told by Wachovia my husbands income (he is not on the note of the house) that only 30 percent of his income would be counted. Not sure if this is normal?