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Help Help Help!! Menace, Anyone!!

Discussion in 'Bank of America Mortgage Help' started by NewStart, Dec 30, 2010.

  1. NewStart

    NewStart LoanSafe Member

    I have been trying to get a loan mod since July 2009 to no avail. I've tried on my own and through NACA. At the beginning of Nov 2010, I was told by a negotiator and another Rep in OOP that I had passed the Hamp final QC and I would be receiving my trial docs any day. Well on Nov 29th, I was denied hamp and received the letter on Dec 10th...due to excessive forebearance. I was then asked to submit docs for an in-house loan. Well today I was denied for an in-house due to too low income. Of course they blamed everything on the investor Freddie Mac. They could give me no numbers and told me Freddie Mac does not allow a deferment of principal (forebearance) as a balloon payment (which we all know is a lie). I have a friend who is willing to move in immediately and pay up to $1200 to rent my basement. Using the info below will I qualify for an in-house.

    I owe $316,000 on the 1st. Behind by $42,000 while waiting on a Hamp.

    I have a 2nd of $70,000.00

    My income is $3300.00 per month disability. Net $3,200.00. I will get this for life.
    Per Zillow, home is worth $306,000.00
    My expenses without mortgage is $1,200.00. $2,000 left to pay mortgage.

    They used my second mortgage to figure out if I qualified, i didn't know they did this.

    Please help...will I qualify for a Mod with add'l rental income of $1,200.00 per month.
  2. NewStart

    NewStart LoanSafe Member

    I forgot to add, current mortgage is $1800 interest only and second mortgage is 650.00.
  3. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    Your $3200 income means you qualify for a payment of about $1000(31% of $3200) Your total amount owed looks like pretty close to $350k. Under HAMP, the minimum payment on a $350k loan is based on 70% of the balance at 2% for 40yrs with the allowed maximum of 30% forbearance(deferred principal due as a balloon). 70% of $350k is about $250k. At 2% for 40yrs, the payment on that is about $750. That is the absolute minimum payment on your loan. Then you have to add in your escrow payment. Your loan payment plus your escrow payment has to be less than or equal to your alllowed payment of $1000. Since the laon payment is $750, and your PITI paymrent has to be $1000, it only leaves $250 for your escrow payment. If your escrow payment is over about $250, you do not qualify for HAMP.

    If you had $1200 additional income from rent, like a roommate, they would count 75% of it. That would make your income about $4000 total, and you would qualify for a payment of $1240(31%) and you would qualify if your escrow is less then about $500 a month($1240 PITI allowed minus principal and interest payment of $750 minimum leaves almost $500.

    If the rent is from a seperate property, they take 75% minus the cost of paying for the property. So if the rent is $1200, and they take 25%, it leaves $900. If the payment on the property is $700, you would only count $200 of rental income.
  4. NewStart

    NewStart LoanSafe Member

    Thank you Menace!!! My escrow is $343.00. I am writing a new letter to the OOP so I can get assigned a new negotiator. My former negotiator was full of crap. With the new figures (renting my basement) it looks like I would qualify for Hamp. But I want to attempt an in-house because I need to file bankrupt ASAP!!!

    Thank you so much for helping everyone, you are a God send!!
  5. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    Since you won't be renting out a seperate place, they will count $900 as income. You should call te servicer, tell them to cancel your request for help, and tell them you are going to look for a roommate, and will reapply when you find one. It is important to close out your current request for a mod, or it could cause problems when you reapply. I would tell them that you have a roomate, not rent from a seperate apartment, or they will get confused. You will need a rental agreement, and a couple of copies of rent checks.

    If you are now current, it might be good to miss two payments, because it is very hard to qualify while current. If you do skip a couple payments, save it in cash, or cashier checks just in case you get another denial and need to get caught up. Keep in in a safe deposit box or something. Your credit will recover from a couple late payments.

    The 2nd is a completely seperate issue, and until you finish with the first, you can't do much about it.

    As long as your escrow payment is less than $500, you should qualify

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