Loan Modification Help: Get Your Loan Modification Approved

What is the function you used to get the Debt to Income ratio? I am looking for it all over the web and can't find it.

just divide relevant debt amount by the gross income

Morgan, you might want to have your readers check out www.modfraud.org. This company provides a service to help victims of loan modification scams get their money back! They also have pre-screened services to help customers get matched with a company that is legit. They helped me get $5300 back from a company that was giving me the runaround. Hope they can help someone else! Thanks!

Morgan, you might want to have your readers check out www.modfraud.org. This company provides a service to help victims of loan modification scams get their money back! They also have pre-screened services to help customers get matched with a company that is legit. They helped me get $5300 back from a company that was giving me the runaround. Hope they can help someone else! Thanks!

Your best / worst scenario for companies is not correct. Some firms (like mine) offer a 100% guarantee if they can't get a mod offer from your lender, and check the BBB ratings. Since it takes just 60-90 days to get a modification, even the newbies to the industry cant hide for long and the complaints will be rolling in on the scammers. Last night I had one company tell me they are members of the chamber of commerce. LOL. I have been in banking / law for over 17 years, and while I won't advertize my organization here, I will say that you should let the professionals save your home. This is a negotiation, based on a complete and accurate package presented to a lender. Without a senior processor/underwriter putting your docs together, your chance of blowing the modification at the submission stage is too great. So, like I said befiore, leave this to a professional, its your families security at stake.

allanr, how do I find someone like you or your firm? Where do I start looking? What am I searching for? I just made my first call today to my lender and they are going to send the paperwork for me to fill out. Any response is appreciated. Thanks.

we are on the internet, but I am not looking for your business... I don't want to "banner" my company here... Blogs are more forum to help those who need guidance. You have contacted your lender, and I will gladly assist you (pro bono) in putting your package together. Feel free to e-mail me at my office allanr@usmortgagefunding.org

I have been working so hard (7 days a week 12 hour days) just not to be in a financial difficulty. I have an ARM at 9% on the first and 11% on the second. Can i have my loan modified? if i quit one of my part time jobs, this will put me in financial difficulty. thanks for the advice.

modifying your loan with two mortgages is tough. you should talk to a
reputable modification company to help you out with that. trying to do that
on your own w/two mortgages is extremely difficult.

michael:

morganb is partially correct, however, he failed to ask the most important question, with respect to your two mortgages... Are both loans with the same lender? While a mod with two loans is more difficult than dealing with one lien holder, if there are many issues that must be looked at. Split lender mods are done everyday, especially with your rated bring so high.

So, gather your paperwork, and tell me... Do you have two differnt lenders ? Many buyers during the purchase craze were put into 80/10/10, 70/20, 80/20 and other wonderful combinations, to provide more cash at closing, and help the borrower avoid mortgage insurance. If you are one of those buyers, then both loans are probably with the same lender. If you took out an equity line after you bought, then its less likely that you have the same lender for both liens. Let me know, this will be the foundation of how we proceed. And yes, I will walk you thru this. If you are comfortable with doing it yourself, you have my help. If not, then a mod co is the right way to you. But, lets gather everything up first because regardless of which way you decide to go, the burden is still on you to put all your docs in order. The list is detailed... check the site for paperwork required for mods usmortgagefunding.org, there is a tab for paperwork and in the dropdown, you will see the "documents needed"... Any questions, please email me.

the blog cut me off... so this is part 2 of what I was saying: terest rates you quoted are so high, in relation to todays market. So, gather your paperwork, and tell me... Do you have two differnt lenders ? Many buyers during the purchase craze were put into 80/10/10, 70/20, 80/20 and other wonderful combinations, to provide more cash at closing, and help the borrower avoid mortgage insurance. If you are one of those buyers, then both loans are probably with the same lender. If you took out an equity line after you bought, then its less likely that you have the same lender for both liens. Let me know, this will be the foundation of how we proceed. And yes, I will walk you thru this. If you are comfortable with doing it yourself, you have my help. If not, then a mod co is the right way to you. But, lets gather everything up first because regardless of which way you decide to go, the burden is still on you to put all your docs in order. The list is detailed... check the site for paperwork required for mods usmortgagefunding.org, there is a tab for paperwork and in the dropdown, you will see the "documents needed"... Any questions, please email me.

Allanr, i apologize for replying late. i have 2 mortagages from the same lender. I have not taken any equity out of the property as it did/does not have any. I have a couple of part time jobs, should i declare all or just one one or two to show that I dont make that much. Thanks os much!

No apologies needed, your situation is exactly what I had pictured, and the reason that morganb was too quick to the draw with his conclusion. Many borrowers are in the same boat you are in... That is, having a first and second with the same lender, as you took on an 80/10/10 to purchase your home, and only put down 10%. The fact that the same lender holds both notes makes it easier to negotiate as a package and puts you in a better position to receive a loan mod than any other situation. You borrowed 90% from the bank and now the home is worth less and you are struggling. You didn't take out an equity line to and blow the cash, so the lender looks at your hardship in a better light than your neighbor, who bough, refinanced and took out equity, bought a car and paid off paid off credit cards with that cash, got in more debt and now applies for a mod to save his sinking ship... You situation is an honest one, with no cash out of the property, so the bank doesn't feel like they are just giving away cash when they do your mod. Lets get that financial statement together, but make it a truthful one. Don't leave out your income from your second job, but counter that income with ALL of your justified and allowed expenses. please download my financial statement and complete it... www.usmortgagefunding.org, under the paperwork tab. And, please feel free to email me for FREE advice. I promise to help you complete everything, so you can submit it and get some assistance. PRO BONO (no charge)... As I said before, I run a succesful company and make a good living, and I am blessed... It is a pleasure helping those in need. www.usmortgagefunding.org

Allen. The lender and/or servicer has little to do with it. It's the
end investors that hold the interest in the notes that matters and I'd
bet that they aren't one in the same. So jut because this gentleman
has one serviced doesn't guarantee a thing in regards to the increased
difficulty involved with a 1st/2nd mod.

Also, I recommended using a firm in my original comment due to the
complexities involving two mortgagea and you're doing the exact same
thing. So I don't see how your opinion is validated over mine.

If you want to promote your business on my blog it doesn't help to
call me an idiot.

First, my apologies, as i was not inferring in any way that you are an idiot. I was just pointing out that many borrowers are not in the equity take out scenario. That being said, yes, they could be with split lenders, but even if not, the fact that he did not take money out for friv. spending will help him and not hurt him when applying for a mod. As to promoting my business, that would be point #2, and since i only offer pro bono on the blogs, how would that promote ? Please look up my office. We have ZERO complaints with the BBB, have been doing mods for over two years, and our sister side is a debt settlement room, accredited members of TASC. I take helping others very seriously... and do it with passion. So, please do not confuse my enthusiam and thoroughness with regard to my comments... You are hardly an idiot and I hope that we can move the world in this wonderful forum. AMR

no worries allan - best of luck to you and thanks for sharing you insights
here! :)

anyone who could help me understand how loan modifications work, would be appreciated...thx.
I am having a little trouble understanding the whole concept of loan modifications. I have read that lenders can and are writing off 2nd mortgages? is that true? is it a 100% write off? or do you have to pay 10% of the whole amount? so if it is a 20k 2nd loan do I have to pay a $2,000 dollars?
On the first loan I've also read that in some cases they are reducing the principal value. Lets say that the principal value is 150k and it is modified to $100. In the event the house is sold a few years from now and if there is a profit on the sale of the house, lets say it sells at 200k, then would we have to pay the bank back the 50K that they reduced? and would we have to pay back the 2nd lender for the portion that they wrote off?

I have applied by myself for loan modifications for both of my loans (80/20). They are now with two separate companies. It's been 3 weeks and I haven't heard anything, and when I call in they tell me to wait for a phone call. How long do I have to wait, I am getting anxious and really worried they will not help me, and I get no answers.

I applied on-line with my two lenders for a loan mod (80/20) about 3 weeks ago. I subsequently faxed all desired paperwork they asked for, only after calling them. They both said to wait for a phone call, but I'm getting anxious and worried I will not be helped. They say they can't give me any more information. How long will this take, and what are the chances of this working? Also in response to chaqui......Since I did them both separately and not through a company because I have no money to pay anyone, would the benefit of getting the second loan written off not be available to me if that is an option?
Thank you for any help.

Do we assume that this will be for the life of the loan or for only a few years?

Most modifications are for a five year period.

I have a question. We just closed on a refi 4/17/09. The other loan was paid off 4/24/09 and I'm supposed to be with a new bank. In the interim my husband was told by his boss to "stay home" for a week or two while they were waiting for a job to be ready (construction). Yesterday my broker called me and said that my new bank was unable to verify my husband's employment and when they called his employer they said that he was temporarily laid off and entitled to unemployment (which we just began collecting) but that he will be called back at some point - they don't know when. Can they bank reject our loan now?

Hi Shar,
They could reject it. It sounds like a verification of employment was a
funding condition - the last of the conditions needed to push the loan
through. Depending on your situation they may be able to do the
verification of employment again; or your broker may need to submit your
loan to a new bank when your husband is working again.

Verifications of employment are usually almost always required at closing.
Did your broker inform you that this would need to be completed to close
the loan?

I assumed they did all verifications of employment and were satisfied with the results. I know that they called my work on the day of closing so I assumed that they called his as well. We already closed and they paid off our previous loan. I really don't know where we stand now.

Guidelines are becoming more standardized it seems at least among the remaining larger lenders, with most either conforming to Making Home Affordable, or FDIC's Mod-in-a-Box Guidelines, or some close variation thereof. Morgan, you provide great advice for homeowners, and I think that now more than ever homeowners are going to finally be able to have a higher success rate in doing loan modifications themselves. If you're a homeowner that is curious as to whether or not your lender will do your loan modification, look up NPV test -- this can help you calculate and weigh the cost of the modification for the bank vs the cost of foreclosure. If it costs less to do the modification, after accounting for re-default rate and the current Freddie Mac weekly indexed rate, as well as a few other factors including duration on the market, legal fees, et. al., then your modification most likely will be approved, provided you fit the DTI and net cash flow requirements. Best of luck to all!

Hi there- unfortunately, I have already sent my lender my F/S before I found you. I expect my lender to re-open my loan mod file and begin the loan mod negotiation with them. In my f/s submission, I did not include my desired monthly mortgage amount which you suggested because the f/s form came from my lender and specifically asked for me to include our expenses towards food, gas, car insurance, cell phones, etc. - I had to include them in my monthly expenses. However, my declaration of expenses were lower than our current income and makes room for a modified mortgage budget. I made sure that our debt to income ratio not including mortgage allows 30% to be budgeted for mortgage- in short, our expenses is 40% of our income. I hope this is good enough.

I have mentioned above that I am hoping for my lender to re-open our loan mod file. Here's what happened- Back in April, I sent them all the docs they where asking except for one. The next thing I found out just last week was that we were scheduled for auction on 7/17. They failed to communicate to us that they closed our file due to the missing doc until I called last week. Yesterday, I sent them the missing doc. I asking loss mitigation to re-open our file and cancel the auction slated on 7/17. I also found out that they are not the lender of my loan but they service my loan. Apparently, they sold our loan to another financial institution. My question is should I be dealing and negotiating with the 3rd party or should i be dealing directly with the owner of my loan which is the lender? BTW, I called the lender and they could not find our loan. Where should I start? should I ask for a copy of of the deed we signed? should we file papers in the court in order to stop the proceedings? what is our defense? should we do it ourselves or should we hire? I have been looking around as to who can help but afraid to hire anyone. We are obviously under the gun. I also feel I need help in the negotiation part. FYI, I was laid off from my job 2 years ago because of a medical condition, hence, we lost half of our income.

Please HELP!! Thanks a million.

Hello, me too i have 2 loans with the lender, the lender want to charge me for the 2 loans, and he is raising his commissions , and also he sent me on top of this a fee in a letter for $700.00
my concern is why does he charge me for each loan separately + an additional fee so i will have 3 fees, and he is telling me that his commission now have increase.
Having a low income now .. having a deficit each month... but I am still current with my payements... I am scare to lose everything... and my income is so limited,
I have no trust in my lender at all... Iam with Imact who have my notes.. I was from countrywide but Impact had my notes.
Please forgive my english I am from France if this is not perfect..
Thank you so much
Sonia