Hello all.. my questions pertain to a loan mod on first. If I should post in another place let me know and I can move. I dont see a category for modifications just foreclosue.
My husband owns a s-corp that we are shutting down as its been failing. Its going to take us a couple of months to officially shut down. We plan to claim chapter 7 in 6 months or so as we have to show his income has dropped significantly.
So, I now have been researching doing a loan mod on my first. I am way upside down.. I owe $186,000 and its appraising for about $130,000. (my second mortgage is another story)
So I qualify for the Make it Affordable Program with the exception of the Payment being more than 31% of gross. However, with my husbands income dropping, I think we might make it by $30.00 or so. My husbands income has changed effective June 1st from $4,000 per month to $1,200 per month. P&L show a total loss.
Questions,
1. How long does mortgage company look back at income?
2. Will mortgage companies also look at excessive debt and change the 31% rule?
3. Do most people do apply for a loan mod before or after a chapter 7 bk?
Thank you!
My husband owns a s-corp that we are shutting down as its been failing. Its going to take us a couple of months to officially shut down. We plan to claim chapter 7 in 6 months or so as we have to show his income has dropped significantly.
So, I now have been researching doing a loan mod on my first. I am way upside down.. I owe $186,000 and its appraising for about $130,000. (my second mortgage is another story)
So I qualify for the Make it Affordable Program with the exception of the Payment being more than 31% of gross. However, with my husbands income dropping, I think we might make it by $30.00 or so. My husbands income has changed effective June 1st from $4,000 per month to $1,200 per month. P&L show a total loss.
Questions,
1. How long does mortgage company look back at income?
2. Will mortgage companies also look at excessive debt and change the 31% rule?
3. Do most people do apply for a loan mod before or after a chapter 7 bk?
Thank you!