Mortgage Limit ?

[furr2ball]

[debtinohio]

That's pretty high, so it is probably like 65-70% of your net?

Regardless if allowed or not it might just be a losing battle. It is just too expensive to carry, keep working on the mod request this would possibly be a viable option.

Check the PITI payment against the IRS standards. Mine was never questioned and I'm over the standard on it by $1000/month but I'm only at 22%, others should respond.

[SMinGA]

No - but you have to be able to submit a doable plan to the trustee. If you're expecting to pay a mortgage that is such a high % of your income, how can you afford utilities, food, etc. etc. etc.?

Unless that is including a 2nd that will be lien stripped due to negative equity? Or there are others in the household while you posted your own ratio???

[furr2ball]

Thank you for your replies, I realize my mortgage is quite high as a percent of my total gross, fortunately I have very little unsecured debt, the largest hit will be the payback of the Mortgage arrearage 40K.
There is a 2nd Heloc of 100K which puts my ratio at 49.80 %. The 1st Mortgage is under water by 200K. This is why a loan Mod makes sense for all parties, unfortunately the process has been on going for over a year and I don’t trust the lender, (First Horizon/Metlife), just received the Notice of Trustee Sale.

Can I save my home in a chap. 13?

[NoTomatoCan]

The first is underwater by $200k? Why not just walk away? That seems like a lot to try to recover, particularly with such a high ratio.

Will a CH13 allow you to reorganize, pay back your arrearage, and and prevent an immediate sale of your home? Yes.

Will it ultimately "save" your home? That seems like a steep uphill climb with those numbers.

On the plus side, you would be able to strip off your 2nd mortgage...

[momofthree]

What is your ratio without the 2nd mortgage? That $40k in arrears will cost you $667/mo over a 60-month plan or $1111/mo over a 36-month plan + attny fees + trustee fees. Can you realistically create a workable budget around that?

If your first mortgage is underwater by $200k is it really worth it to try to keep it? I think you need to take a good long look at the numbers. Figure out a budget based on keeping it and a budget based on giving it up and renting for a few years & then buying a comparable house for $200k less. You'd probably be looking at a savings of $400k+. Imagine what you could do with that money. Fund your children's college educations? Retire early? Take lavish vacations every year and live a comfortable lifestyle? And the real sacrifice is really just a few years of renting...

[biotechsolution]

if you are waiting for a principal reduction of near 200K, I don't believe that will happen.