Modification when mortgage is on one's spouse name only

[marchelala]

Our first mortgage with BoA on my husband name only, so if we would apply for modification I assume only he's income needs to be listed. What about expenses?

Basically my husband income is significantly lower them mine. Current mortgage payment is >31% of HIS income (but not the combined income). I think income situation is straight forward (from hamp website) only mortgage signing people need to provide information. But again what about expenses?

Another words:

We have 2 cars, daycare bill, utility etc. If we would list all of those in mod papaerwork, they will say - he simply does not make enough money for all of this. Do I have to list them ? Or he can just say - I pay mortgage and taxes, and everything else is my wife.... Thanks for your help, I am confused.

[Pandora]

HAMP doesnt care about any expenses other than the mortgage payment, they do not account for any of it even though when you fill out the paperwork, its something you have to list. Hard to swallow, but its true.

I believe your income will be counted as it falls under the "any other income / child support / alimony / social security / disability / etc" area. You also have to provide tax returns - so if you file joint returns, your income will count for the mod.

Make sure you understand how HAMP works - if your loan is Fannie backed, its easier to get HAMP as well. If denied for HAMP, the lender may go for in-house, which sometimes mimic's HAMP in terms, but in-house mods do account for other bills you have. HAMP can take anywhere from 9-18 months and is not gaurenteed just because you enter into a "trial" period - and its never "only 3 months of trial payments." We were lucky and were approved for HAMP in about 8 months, but it was pure hell.

[marchelala]

Thanks Pandora.
If they will count my income it will probable wont work

One think I am not clear about ... so mortgae is discharge in BK, we are current, apply for a mod. If It got denied -now what ? can I go back to the previous mortgage terms or not? I do want to keep the house. Thanks.

[Pandora]

Thanks Pandora.
If they will count my income it will probable wont work

One think I am not clear about ... so mortgae is discharge in BK, we are current, apply for a mod. If It got denied -now what ? can I go back to the previous mortgage terms or not? I do want to keep the house. Thanks.

You've already gotten a discharge and included your mortgage? Is that what I'm reading? If thats the case, then did you reaffirm your mortgage or just do a ride through? If you reaffirmed, and are denied a mod, yes it reverts to org. terms. If you didnt reaffirm and are just riding it through, and are denied a mod, its the same terms as before as well. Just be very careful because once you enter into a trial agreement, if you didnt reaffirm and are riding through, I believe that constitutes you reaffirming at that point in time by signing, so you'd be on the hook for the mortgage and cant walk away unscathed.

Best to check with your lawyer on how it would work.

[marchelala]

yes discharged, not-reaffirmed and we just riding through. From what I read modification sign up is not reaffirmatio. Just refinance is.

[Pandora]

I dont know about that... ours is definately a full contract, its the original contract, just modified terms. You do have to sign paperwork that has all the mortgage jargon in it - right down to MERS and RESPA. In your case, since you didnt reaffirm in your BK, I bet they will require you to sign reaffirmation paperwork in order to get a completed modification.

Where are you looking that says it doesnt reaffirm if you mod?

[marchelala]

right original contract, just modified terms - therefore if original contract is not reaffirmed so is modified one. I did read it somewhere here on this forum.

[Pandora]

yeah, I was just reading the same thing on here...but I was also reading other situations where it depended on the lender on whether or not they allowed a mod without a reaffirmation and re-wrote the entire loan.

Guess its a crap shoot at this point and its up to your lender.

ETA: found this info as well:

".....won't be able to refinance or get a loan modification as you did not reaffirm the loan. Since a discharge was granted, there is no personal liability to pay off the loan, so the lender has no reason/benefit to let you refinance or help with a modification. If you stop the payments, your house will be taken away by the lender. You may try to reaffirm the mortgage if that is possible. However, this would make you personally liable for the mortgage again, therefore if you default you are on the hook for the mortgage in full."

So apparently it is up to the lender on how they decide to proceed.