Modification Frustration

[azballer]

I applied for a modification through GMAC at the end of June and was told by July 9th that my income level was too high to qualify for the Obama modification program. I was then told that my information would be reviewed for a traditional "in house" modification. I find out yesterday that I did not qualify for that because my expenses are to high in relation to my income.

The lady I spoke with actually said that since the income was basically equal to my expenses, they would not be able to work with me. She then implied that I should take a look at my expenses and see if there is anything I got wrong on the report. I would have a better chance of qualifying for a traditional mod if I had some free money at the end of the month. I told her that was the idea behind getting the modification...to give me some breathing room. She agreed, but said GMAC likes to see some free cash available each month to ensure you can keep paying your mortgage if you have unexpected expenses.

My question is this: For those of you who have been approved for a traditional modification, what is a good ratio of income to expenses to show to get these approved? How much free cash is too much? I will be reapplying soon and want to get it right this time. I guess I understand what GMAC is saying, just doesn't seem right.

Thanks in advance for your opinions!

[andy28]

Hello! If you look at my post today.. you know what I'm know what you going thru too..

GMAC agree to mod. loan.. and now he denied it..so Trustee sale on Aug. 30..

[calgirl67]

Don't listen to a word of lender's lies. They have NO intention of ever modifying your loan. Just stay as long as you can for free before they auction off the property, then move into a rental.

[SMinGA]

With BofA, I didn't show alot. My budget w/ my old mortgage amount showed $125-150/mo 'extra'. But then I did not include things as detailed as w/ a ch. 7 or 13 budget. Left out the things that would be skipped in a month when you had to cut back. Like did not include entertainment, holiday/birthday spending. Then the mod of course lowered the mortgage payment improving the cash flow...

[azballer]

I appreciate the responses guys. We recently got rid of our two vehicles and replaced them with much more affordable ones, saving us around $1000 per month (don't ask...LOL). We are now showing around $1200 extra funds per month. I will update in the next 30 days and let you know how it goes...

[espo1357]

Don't listen to a word of lender's lies. They have NO intention of ever modifying your loan. Just stay as long as you can for free before they auction off the property, then move into a rental.

This is unfortunately happening often.

You could do the "move" made by my advanced defaulters...pay every other month. It will be difficult for them to foreclose on you, because you are attempting to pay!

Or you could hire a lawyer and "throw the book" at them. My friend gave his lawyer 3k, and he got about 3 years of no mortgage payments...

and that put him in a position to put a down payment on another property.

If you stay educated on your options, you can take advantage of them.

[knitty]

[QUOTE=espo1357;534834]This is unfortunately happening often.

You could do the "move" made by my advanced defaulters...pay every other month. It will be difficult for them to foreclose on you, because you are attempting to pay!

Didn't work for me (HSBC)the every other month thing...they applied the payment to whatever month came next..March not March, actually last November, etc. For a whole year we were attempting a mod with different companies plus HUD...by the time we actually talked to the HSBC person (in July) we were $16,000 behind and they had sent back the payment I had made in May. We were denied all along, too much income.

[drowning123]

No one gets modified.

[ValleYum]

Trying for a loan mod seems a lot like this:



They keep you running and running and you never get anywhere!

[drowning123]

Love it ValleYum!