Your Questions About Loan Modification Program
John asks…
Foreclosure: What income determines what type of loan modification program you qualify for?
My relative is in foreclosure. He’s been in contact with the lender and is trying to work out a modification. They ask about income, rental property, all expenses, etc, then determine what type of program you qualify for. What determines which plan? They have said that he may not qualify for any based on his income. Is there a certain calculator they use or a certain percentage?
Joe answers:
He probably would have had to have a LARGE income DECREASE (loss of job), etc since he got the original mortgage to have any chance of getting a modification –
if it’s just gotten too expensive or he had an adjustable rate that just went up – he won’t get any modification
Joseph asks…
Can I get approved for the new Obama loan modification program while my house is listed for sale?
I will be applying for a wells fargo loan modification. I switched jobs about a year ago and make significantly less than when I purchased the home. Currently my monthly mortgage payment is much more than 31% of my gross income. Will I be denied because my house is listed for sale. The house is not in foreclosure. I know the question: “Is your house listed for sale or do you intend to sale your home?” is specifically asked in the wells fargo questionaire. What should I do?
Joe answers:
You can’t lie. Your house is for sale. If you apply for the refi and a buyer comes along you are screwed.
With a refi your principle, property tax and homeowners insurance are not reduced. Just the interest and a longer term. You do not realize much savings. It only pays if the rate is 2 points.
Helen asks…
What branch of the government oversees the loan modification program?
For almost two months I have asked my bank to help me with the loan modification that I know I’m eligible for. They continue to blame Freddie Mac for the failure to get paperwork of any great value out to me. I want to contact whatever branch of government is responsible for this modification and get my bank off their ass…
Joe answers:
Call 1-888-612-4850 they have the details.
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