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Mortgage Limit ?

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    Mortgage Limit ?


    #2
    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.
    19% dividend

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      #3
      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???
      Get mortgage modified: DONE! 7 months of back interest payments amortized, payment reduced over $200/mo
      (In the 'planning' stage, to file ch. 13 if/when we have to.)

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        #4
        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?

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          #5
          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...

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            #6
            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...
            Filed Chapter 13 on 2-28-10. 341 completed 4/14/10. Confirmed 5/14/10. Lien strip granted 2/2/11
            0% payback to unsecured creditors, 56 payments down, 4 to go....

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              #7
              if you are waiting for a principal reduction of near 200K, I don't believe that will happen.

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