Question about modification eligibility

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knitty

LoanSafe Member
Oct 14, 2012
21
0
1
Hi, I’m applying for a modification with both of my loan servicers. I have a mortgage with M & T Bank and my payment is $1052 a month and a home equity loan with B of A and that payment is $980 a month. My gross income is about $4500 a month.

So if each servicer were to only consider their loan i’d be under 31%. But if they consider both I’d be well over. Does anyone have experience with this or could tell me how they handle this? Thanks!
 

Erik Sandstrom

Mortgage Expert - Call 1-619-379-8999
Staff member
Loan Safe Mortgage
Jan 14, 2011
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San Diego, California
www.loansreduced.com
I'm sure someone will come in and comment on this that is a bit more knowledgeable on the current modification guidelines but it also seems that you are familiar with how most servicers view loan mods and that is 31% of your gross monthly income is what they will modify the payment to (with taxes and insurance). I really don't think the 1st mortgage will care about anyone else besides themselves but again as mentioned I could be mistaken.

Can you please update us as to how the progress is coming with your mod and how they are looking at it?
 

knitty

LoanSafe Member
Oct 14, 2012
21
0
1
I was denied a modification on the first lien. I was offered a repayment plan instead, which sucks. Now I have to pay $500 more a month for 7 months. I was only 2 months behind. I want to apply for the Freddie Mac stream line modification but I’m not sure if I can now that I am in this repayment plan. I’m wondering if that’s possible.

I am still trying to get a modification on my second la I am still trying to get a modification on my second lien.
 

OneHugeMess

LoanSafe Member
May 30, 2016
597
53
28
Bank of America is usually fairly decent with Mods. Is your 2nd underwater at all?

Was your original loan with M&T Bank? They tend to acquire a lot of "risky" or delinquent Fannie & Freddie loans, and act as a default servicer. But from what I've noticed, usually around the 90 Day mark or so, they turn the loans over to Bayview or Lakeview Loan Servicing. You might have better luck with Bayview or Lakeview, but... it's not guaranteed. They tend to go for 3-4% Interest Mods, over 40 Years, and capitalize any past due amounts. 2% is now a little rare, unless the first lien is completely underwater.

When was your original (first lien) loan made? Was it before January 1, 2009? Have you tried for a HAMP or In-House Modification before? Again - who was the original lender? Is the loan underwater at all, or does it have massive equity?