What exactly is a hardship? Making home affordable

[Sham11801]

Hello again all,

I am not discharged as of yet since i filed 9/28/09, I called Bank of America to see if the Obama MHA would work for me. They started asking me the usual questions then got to "hardship"..I said if i didnt have a hardship, would i have filed BK? He said it does not qualify since my debts are being wiped out and that would leave me with more money to pay...which in a sense he is right..my home is a bit upside down from where we bought it 4 years ago so even a refinance would be out of the question after discharge.

My main issue is the fact that it is an ARM that sets to adjust in September 2010. Currently 5.85 Interest only (since thats all weve been able to pay)..
When it adjusts it will be a random rate adjusting every year with principal. They said the rate adjustment would be considered a hardship since its an increase in payment but i wont qualify for that until it happens..(grr)

My sister is the joint owner of the property with me and our parents who dont work, live with us..she will be married soon and be living out of state,and no longer contributing to the mortgage. DOes anyone think or has anyone experienced this to be considered a hardship as well? Since its a loss of income supporting the loan..not necessarily a loss of income due to umeployment but still loss of income? I dont want to bother calling them again and waiting on hold for an hour just to get no where. Any help would be appreciated. Thanks!

[Sham11801]

*bump*

[Lookadat]

www.efanniemae.com has alot of useful info. This is the link to the Hardship Affidavit. I am trying this modification, too. I was asked to get discharged first after I filled out all the preliminary paperwork which was based on post Chap 7 'life'. Then after I was discharged, I got to talk to someone 'new' and was asked if I still needed help since all my debt was discharged. I said yes, and here we go again. This plan is really confusing, and the people at the banks are still learning. I reaffirmed my mortgage because I thought you had to, (Up to them) and because I couldn't afford it anymore (Job Change) and needed some help. I'll never know what I should have done...

https://www.efanniemae.com/sf/formsdocs/forms/pdf/servicingtrans/1021.pdf

[StartingOver08]

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My main issue is the fact that it is an ARM that sets to adjust in September 2010. Currently 5.85 Interest only (since thats all weve been able to pay)..
When it adjusts it will be a random rate adjusting every year with principal. They said the rate adjustment would be considered a hardship since its an increase in payment but i wont qualify for that until it happens..(grr)

Just a comment here: when your note adjusts, it will not be a random rate. It is a formula that is specified in your note that you signed at closing. If you read the note, you will see the index, the margin and the applicable change periods. It might help you to know the note particulars so you can check the history of the index. Not that the history will predict the future, but it helps to know how the index moves.

My sister is the joint owner of the property with me and our parents who dont work, live with us..she will be married soon and be living out of state,and no longer contributing to the mortgage....

Clarification here: Although your sister is getting married and leaving, she is still obligated to pay her portion of the note when she leaves. From a practical point of view I see your point, but since you filed BK the lender can come after your sister for the entire payment if she did not file and you did not reaffirm and if you have stopped paying. The lender will come after any and all people that signed the note - no matter where they are located. Your BK just discharges the personal liablility you have should you decide not to pay, it does not discharge the lien.