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Find out Now If you even QUALIFY for a Loan Workout Solution. Post Your Situation

Discussion in 'Loan Modification' started by Michael Nazarinia, Apr 21, 2011.

  1. Michael Nazarinia

    Michael Nazarinia Michael Nazarinia - Mortgage Expert 619-379-0654


    Loan Mod Help Center has decided to post a thread here on loansafe to help out people here on the forum that really might be trying for a modification and have no idea, that they are already in a much better situation then a modification could help with.

    So many times we find out after having done thousands of complimentary income and property analysis that the mortgage is not the problem.

    We have turned down so many loansafe.org members who would not benefit from a modification, since they make too much income, or too little, or didn't have a proven hardship, or had more than 25% equity, these folks would not benefit from a purchase, unless they wanted to prove that a short sale or foreclosure had a higher NPV than a modification so they could pick those option.

    In addition, something very important to realize when looking into a modification is the monthly household budget and your credit report liabilities, and we use a balanced budget approach as the basis for some of our inputs, and can help you correct budget issues as part of our support.

    You can have a perfect scenario for modification however if the budget is not a "cash flow solvent" budget as opposed to an "insolvent" and balanced budget, to the widely accepted statistical norms and household allowances, you could be denied for having too much debt or excessive monthly obligations in relation to income, or having too much of a surplus.

    You can save yourself time and a phone call by posting the following information or emailing the below information to loansafe@loanmodhelpcenter.com.

    ***A modification is not a way to get a refinance and will impact your credit so if you are not late because of hardship, and can't prove an income decline hardship or expense hardship that is long term, then you should reconsider a modification attempt.

    Please us this format only and let us know the urgency of your situation so we can prioritize scenarios depending on proven hardship:


    1. Loan Balance Now=
    2. Past Due if any=
    3. Gross Monthly Income for Borrower and Co Borrower=
    4. Mortgage Payment without taxes and insurance (do not include taxes and insurance) =
    5. Real Estate Taxes per month=
    6. Insurance and/or HOA per month=
    7. Home Value (check eppraisal.com and chase home value estimator)=
    8. Mortgage Servicer and Investor (check if fannie or freddie or MERS below links)
    9. Other monthly debt payment total for credit cards and collections =
    10. Current interest rate =
    11. Fixed Rate or Adjustable Rate? =
    12. Have you been modified before? if so, what date? =
    13. When did you get this loan, what year? =
    14. If you own any other properties, include PITIA for each property and gross rental income for each=

    Does Fannie Mae Own Your Mortgage? Loan Lookup Tool Fannie Mae Look up

    http://www.freddiemac.com/mymortgage Freddie Mac Look up
    if not fannie or freddie, look up your loan at MERS:


    Qualifying for a modification:

    Spending more than 31% of your gross income on PITIA or are more than 60 days past due or soon will be· Having enough income to support a mod is critical, too much income and you don't qualify and too little you don't qualify·

    No documented hardship makes getting mod more difficult as a mod is not a refinance

    How your modification is figured out:

    NEW as of 7/1/2014: Calculate payment of between 10% to 55% of gross income using benchmark freddie mac market survey rate rounded to nearest 0.125% if loan is owned by fannie or freddie.

    Use up to a 480 month amortization on new unpaid 1st mortgage loan amount of past due plus existing balance.

    Target payment of 31% housing PITIA to gross income ratio if possible using a rate of as low as the floor rate of 2% as first option under HAMP Tier 1 over 480 month maximum term allowed.

    This new 1st mortgage housing payment must fit the targeted debt-to-income (DTI) ratio and is dependent on other credit reported debt liabilities for a total debt to income ratio of 55% to 65% depending on mod program.

    The HAMP mods do not have a total (back-end) DTI ratio for all credit report liabilities,
    Review for principal reduction using alternative published loan modification waterfall HAMP Tier 1 and HAMP Tier 2 techniques with principal reduction as first step down to 115% of market value from several online sources.

    Reduce the interest rate in 0.125% increments to find a payment that is as close to the targeted DTI as possible. However, the lender does not have to go below a 2% interest rate.

    If the targeted 10% to 55% housing to income (31% to 42% is preferred for most servicers) ratio goal cannot be reached, the length of the loan may be extended to be up to 40 years long.

    If the 31% goal still cannot be met, the lender can, but does not have to, start to forbear or forgive principle.

    Forbearance of the lesser of up to 30% of the new unpaid principal balance or 115% of market value, is allowed by Fannie and Freddie (they do not allow principal reduction alternative under HAMP tier 1 and do not participate in tier 2) and other servicers as a last resort and means a specific amount will be due in one payment at the end of the loan.

    Forgiveness means that the principal and/or past due is written off for some investors that participate in principal reduction.

    email loansafe@loanmodhelpcenter.com the above inputs to get your own unique, unbiased loan mod scenario evaluation and analysis.



    email us with the 14 inputs above at loansafe@loanmodhelpcenter.com or post the answers at the end of this thread.
    Last edited: Aug 20, 2014
  2. diesillady

    diesillady LoanSafe Member

    1. Loan Balance=$222198
    2. Past Due= $7452
    3. Gross Income=$78000
    4. Mortgage Payment=$1366
    5. Taxes= $141
    6. Insurance=$69
    7. Home Value=$113k+-5k
    8. Investor= Bank of New York/ B of A service the loan
    Currently in a 3rd month of a 5 payment HAMP plan, my payments are $1491.36.
    I really have no idea where they got that amount from but not willing to pay them anymore.
  3. dab68

    dab68 LoanSafe Member

    1. Loan Balance=$218,056.00
    2. Past Due=$38,86.00
    3. Gross Income=$3,324.00
    4. Mortgage Payment=$1,398.97
    5. Taxes=$236.00
    6. Insurance=$55.27
    7. Home Value=$222,000.00 Per County assessors office$215,000.00 Per Chase when I tried to refi in 2009
    8. Investor=Freddie Mac
  4. Michael Nazarinia

    Michael Nazarinia Michael Nazarinia - Mortgage Expert 619-379-0654

    Wow.... yes they 100% for sure don't have that income on file for whatever reason, kif they did you payment would be deemed more than affordable. 1366 divide by 6500 you would already be at 20%... Keep us posted on how your HAMP mod comes out. Glad you got one. Good work.

    With that situation you would need about half as much income 3300-3500
    Michael tracy likes this.
  5. Michael Nazarinia

    Michael Nazarinia Michael Nazarinia - Mortgage Expert 619-379-0654


    You situation is great spending 42% of your gross income on your mortgage payment, and your income does support a mod in a perfect world for 2% over 40 year term you would need 3500 gross income, in order to hit the floors. With that being said, im using numbers from your mouth, not from the bank. Ususally gatheriing the NPV inputs right away same day is the best. Anyways... You look great and are over 31%, and do have enough income to support a mod

    How has it been going thus far getting a mod? You should be at a payment of 774.37 w/ TI = 1066.14 In my experience, and opinion. Not a huge savings but, at the same time you are already behind and just getting current again will save you all the money you have no paid. Good luck, any questions let me know.
  6. dab68

    dab68 LoanSafe Member

    Well thanks Charlie for your quick response...This is about my third attempt to try for Mod. The last time I tried was with my husbands unemployment> I was denied in Dec of 2010. I since have gotten a divorce and have tried on my own with income form a pension ssi and child support. Will they up the ssdi income to 125%? Will this help? I got the home in the divorce and have filed a quit claim deed brought up all the hoa fees current.

    However....being that I am a nice X-wife I have allowed my X-husband to remain in the home with me. I have wondered if I do not meet the Mod, Can I have my X pay me rent and use this toward income? If so How do I do this? I am told as of April 12th per my Relationship manager at Chase, that I have gone to underwriting.
    Another question....I have just gotten word from my bank that my debit card has been used by someone and I have been racking up fees for insufficient funds on my checking acct. This is just a mess now. I wonder when it comes time for me to update my bank records if they (Chase) will freak when they see the fees. My bank is looking into the matter and told me they will reimburse the fees after an investigation. Also how would I know really what my home is worth? Do I go by the last appraisal from Chase or the county assessors. office.
  7. Michael Nazarinia

    Michael Nazarinia Michael Nazarinia - Mortgage Expert 619-379-0654

    Yes you can figure out what income you need and use him as a renter no problem, as long as he is not on the loan. SSI will be grossed up x 1.25% you can give us a call ill use what your numbers would be to see if it makes sense, and see first if you should need more income, this way you do not keep getitng denied we see people that get denied 2-3-4x then use product, and realize finally that servicers really have no desier to modify the loan as they make more dragging out the process, and letting home goto forelcosure. I have no problem looking at the would be new numbers, anytime here or you can give me a call. You were denied 1st time for unemployment there is a HAMP-UP program, but sounds like unemployment will not be an issue this time.
  8. diesillady

    diesillady LoanSafe Member

    Yes the note is affordable and my house is nice. However the value of the property and the adjustable rate loan or not. I have done all the number and it not to my best interest to stay in this house. The neighborhood is mostly investor owners now with some renter from hell and only a few old head left. I don't think my home value will reach par in the next 15 years so basically we are renters also.
  9. Michael Nazarinia

    Michael Nazarinia Michael Nazarinia - Mortgage Expert 619-379-0654

    as long as you looked at all your numbers, that is all the matters. Do what you feel is right, good luck and keep us posted.
  10. ChaseIt

    ChaseIt LoanSafe Member

  11. Michael Nazarinia

    Michael Nazarinia Michael Nazarinia - Mortgage Expert 619-379-0654

    Fannie mae and Freddie Mac do not require you to have negative equity. Yes, actually just got off the phone with cperry here on loansafe who used rest report, we just called Fannie Mae together, they are the investor, so they love to see how they are going to make more money by modifying the loan, and also they are aware servicers make more on foreclosure, so there is the obvious conflict of interest. Servicers work under a PSA that states they must work in the best interest of the investor, but how would you prove that they did not try? Now you can. I would go direct to Fannie, we get mod packages out in 3-5 days typically if its Fannie Mae, we only offer a product and can't by law offer a service. So we support our product. Kinda crazy but have to follow the rules. Have any questions, let me know! I would be more than happy to point you in the right direction. I am not here to only offer a REST REPORT, granted i personally think its the best thing in the world, I still help anyone with anything. Thanks for the kind words.
  12. feebee

    feebee LoanSafe Member

    Loan Balance=$141,967.29
    Past Due=$10,236.86
    Gross Income=$4,500
    Mortgage Payment= was $1,298 escrow reduced so now $1,145 as of May 1,2011
    Taxes= Included in payment
    Insurance=Included in payment
    Home Value=$130,000
    Investor=FHA--US Bank

    Ok here is some background. Purchased home in March 2009 (so making home affordable not an option). Separated in June 2009, Divorced in December 2009. Missed some payments via struggle with ex-husband. Ex-husband did not make payments as agreed per divorce settlement and refused to give up property interest. Payments were 3 months behind. In July 2010 ex-husband filed Ch 13. I brought mortgage current. Received a statement from US Bank that next payment was due 10/2010. Made 10/2010 payment and 11/2010 payment. In December 2010 I receive a mortgage statement but there is no info for next post petition payment. I contact US Bank and was informed that payment was being made via trustee. I contact ex-husband and he has no idea. Contact US Bank again and get no information. Back and forth ensues and meanwhile no payments were made by my ex-husband or the trustee. Prior to 12/2010 I had made the payments. End of February I receive notice from US Bank's attorney to lift the bankruptcy stay and foreclose on my ex-husband's interest in the property. My ex redoes his Ch 13 paperwork and claims 0% interest in the property. I contact an attorney, still cannot figure this out. US Bank has finally sent me a workout package. Foreclosure process starts May 10, 2011.

    My escrow account was previously overcharged. I need to pay the past due amount and then US Bank must refund me $1,500.

    Sorry for the long post, this is long confusing and frustrating.

    I should also mention I am the co-borrower on the loan, but I was told this did not matter.
  13. RKMESB

    RKMESB LoanSafe Member

    1. Loan Balance= 369,400
    2. Past Due= approx. 34,000
    3. Gross Income= 69,000
    4. Mortgage Payment=2154 (int. only)
    5. Taxes=5445
    6. Insurance=640
    7. Home Value=217000
    8. Investor=FannieMae
    Just discharged yesterday from CH 7 BK (not because of excessive debt but a 2nd lien holder from an investment property trying to sue). Trustee sale scheduled May 31. We tried before the BK to get loan mod paperwork from the bank (B of A) but they refused to send it to us because we had received a NTS. We had sent paperwork months earlier with no success. Thanks.
  14. vadimm

    vadimm LoanSafe Member

    1. Loan Balance=240k 2. Past Due=0 3. Gross Income=2700 4. Mortgage Payment=1850 5. Taxes=escrow 6. Insurance=escrow 7. Home Value=224k 8. Investor= GMAC
  15. dcrc49

    dcrc49 LoanSafe Member

    loan balance 295,875 past due 0, gross income 5000,payment1634 escrow 442 value 365,000, 50 year balloon 2037 200,000 nationstar 6.25%
  16. RobbieSF

    RobbieSF LoanSafe Member

    1. Loan Balance=$635000 (2 loans 1st loan $515000)
    2. Past Due=$13000 (1st loan only)
    3. Gross Income=$120000
    4. Mortgage Payment=$3000 (1st loan only)
    5. Taxes=$8000
    6. Insurance=$6000 (hoa fees)
    7. Home Value=$580000 (est)
    8. Investor=BOA (main loan), GMAC (2nd loan)

    My situation is actually pretty grim as I'm also locked in a lawsuit for predatory lending with the lenders (probably did everything wrong in going to an attorney for a $6k fee but here I am). BOA seems not to want to do a loan mod while the lawsuit is going on through my attorney is trying to work on that as part of a settlement with their attorneys -- though that seems to be spinning in circles.
  17. Scarlett

    Scarlett LoanSafe Member

    This is great thank you...so if I may, here are my numbers. We are current but won't be much longer!
    1.loan balance=417,000
    2.past due= 0
    3.gross=5,400 (I think self employed)
    4.Mort payment=2126
    7.Home value=404,000
    8.investor=Fannie M and Chase-servicer
  18. Michael Nazarinia

    Michael Nazarinia Michael Nazarinia - Mortgage Expert 619-379-0654

    Just got home, will make sure I answer every post first thing in the morning. Hope you all had a great Easter. Sorry for the delay.
  19. ad2001

    ad2001 LoanSafe Member

    1. Loan Balance= $244078 <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:eek:ffice:eek:ffice" /><o:p></o:p>
    2. Past Due= $2311 <o:p></o:p>
    3. Gross Income= $85000/year <o:p></o:p>
    4. Mortgage Payment= $2311 (includes escrow for taxes and insurance) <o:p></o:p>
    5. Taxes= in escrow<o:p></o:p>
    6. Insurance= in escrow<o:p></o:p>
    7. Home Value= 247680 (county assessor assessment) <o:p></o:p>
    8. Investor= GMAC<o:p></o:p>
    FHA loan originated after January 2009. So far we have been making the payments, but with great difficulty because the mortgage payment was increased with $500 last year (due to property tax increase). In addition we have a significant amount of other debts, and get even more into debt every month, because after we pay the mortgage there is little left. This month we failed to pay because of other bills and applied for modification. <o:p></o:p>
  20. traymerz

    traymerz LoanSafe Member

    Thanks so much for helping!
    Here are our numbers:

    1. Loan Balance= $208,900 - we also have a HELOC with $24,175 balance-but are only working on modifying the first right now.
    2. Past Due= 2 months (about $3700)
    3. Gross Income= $40,000/yr salary (probably about $3000-5000 in commission/yr, but new job so not sure)
    4. $1367. 12 principal and interest $507.92 escrow total monthly payment $1875.04

    1. Taxes= in monthly payment
    2. Insurance=
    3. Home Value= $250,000
    4. Investor=Fannie Mae
    thanks so much for your help.

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