Posted on: 12th Jul, 2009 05:33 pm
We are in default on our mortgage (my husband is unemployed and I am starting a business after losing my job as well). A foreclosure action has already been filed but was put on hold because we filed for a HEMAP loan (in PA) which is an emergency loan to help catch up on delinquent mortgage payments. Well, we were denied on the HEMAP loan request because the state claimed we "overextended our credit." I had perfect credit but we were forced to pay the mortgage on the credit cards which left us with huge credit card debt. I had also requested a loan modification through my mortgage company and after months of waiting was informed they had sent all requests to an outside company. Well, after another month we were informed we do not qualify for a modification. Our housing counselor did not see any reason we would be denied. What's worse is the outside company my mortgage company now requires me to deal with cannot tell me why we were denied. They offered a 6 month forbearance, but I am apprehensive because I don't know where we will stand at the end of the 6 month period. I do think we can make the payments the Homesaver forbearance plan specifies but is it worth it if we can't modify the loan and our income status at present is up in the air? Please help...I don't know what to do :-(
Hi Guest,
A lender will accept your loan modification request depending upon your financial situation. If the lender finds you are capable of paying the dues, then he would not consider your request. However, it is true that the lender should explain why you were denied a loan modification.
As far as forbearance is considered, I think it is a good option as it will help you in saving the property right now. Depending upon your financial situation, the lender would either suspend or reduce your payments for 6 months. After 6 months, if your financial situation does not improve, then he may offer you a loan modification. I think it would be good for you to accept this plan.
Thanks
A lender will accept your loan modification request depending upon your financial situation. If the lender finds you are capable of paying the dues, then he would not consider your request. However, it is true that the lender should explain why you were denied a loan modification.
As far as forbearance is considered, I think it is a good option as it will help you in saving the property right now. Depending upon your financial situation, the lender would either suspend or reduce your payments for 6 months. After 6 months, if your financial situation does not improve, then he may offer you a loan modification. I think it would be good for you to accept this plan.
Thanks