Posted on: 29th Oct, 2008 08:31 pm
I'm 56 and underwater on condo in CA. owe 370-current mrt value around 295. I put down 20%. Important: loan was approved based primarily on savings (from years back) and current income from work which is low. Expenses increased in last 2 years since purchase and have drawn sav. way down due to health issues which continue. I have always used some savings combined with current income to make payments. My expenses are twice my current income. I cannot sustain the current loan for future turnaround(est. 4-5 yrs min) unless adjusted to reflect current market value lowering payments. I sent lender hardship letter and received a financial statement to complete.
Based on how loan was approved, I am unsure how to respond on income/expense issue to show need for loan modification. This is not the usual ratio of income to expenses and I have used savings to pay loan with work income since the beginning except now expenses higher. I cannot show income overage on sheet. How is this positioned and explained to lender? I do not want to lose property or walk away and can remain here only if they adjust current loan. I need help responding. I am stressed in not knowing how to deal with this and appreciate any help.
Based on how loan was approved, I am unsure how to respond on income/expense issue to show need for loan modification. This is not the usual ratio of income to expenses and I have used savings to pay loan with work income since the beginning except now expenses higher. I cannot show income overage on sheet. How is this positioned and explained to lender? I do not want to lose property or walk away and can remain here only if they adjust current loan. I need help responding. I am stressed in not knowing how to deal with this and appreciate any help.
Welcome Susanspencer,
I can understand your position. If you're going for a loan modification, you need to check if your monthly payment is increased due to addition of any dues into your loan balance. regarding the income/expenses ratio, well, you need to show your income such that you can afford the payments under the loan modification plan. Didn't your lender speak about any probable payment under the plan? I suggest that you talk to a loan modification specialist for further assistance.
I can understand your position. If you're going for a loan modification, you need to check if your monthly payment is increased due to addition of any dues into your loan balance. regarding the income/expenses ratio, well, you need to show your income such that you can afford the payments under the loan modification plan. Didn't your lender speak about any probable payment under the plan? I suggest that you talk to a loan modification specialist for further assistance.
Thank you for your response. I am not sure if it was clear that I do not have an offer from lender as yet. My monthly payment has not changed since beginning. Lender approved loan based on assets and job income which is low. I understand I need to show I can afford payments, this was basis for my question in how to do so. It is the monthly expenses that are driving the need for loan mod. When looking at total savings, it needs to be understood or will be denied that monies will be gone in less than the year is loan not moditified. Question was in regards to explaining this in income/expense sheet and possibly in letter. Need to send out ASAP.
Hi susan spencer!
I can understand that you are in a tough situation. You can provide the lender with a copy of a monthly budget, if you have one, which will show that you expenses are more than your income. Or else, if you have any credit card debts or other liabilities, you can show the receipt of that to the lender. I hope this will help you to prove that your expenses are more than your income.
Thanks
I can understand that you are in a tough situation. You can provide the lender with a copy of a monthly budget, if you have one, which will show that you expenses are more than your income. Or else, if you have any credit card debts or other liabilities, you can show the receipt of that to the lender. I hope this will help you to prove that your expenses are more than your income.
Thanks