Posted on: 08th Jul, 2010 12:26 pm
My husband and I qualified for a loan modification Oct 08 for 2 yrs. This Oct the loan mod will be up & the loan will go back to an ajustable loan. That rate can go as high as 11% & there is no way we can afford that. I am trying to reapply for a new loan mod but it the mortgage company is telling me that our mortgage payment needs to be 31% of our gross income to qualify for the loan mod. Currently our loan payment is 25.11% which means as of today we do not quailify. But they said to send in the completed paperwork & maybe we can quailify for an internal loan modification with the lender, not the government offer. What if we don't qualify for that option. We are upside down in our home, we owe more on our home then what it is currenlty worth which means we can not refi. I am concerned that come December my family and I will not be able to afford our home. Are there any other options out there for us?
Hi jborelli,
If you do not qualify for the loan modification option, then the loan will become an adjustable one. If you cannot pay the mortgage dues, then the lender will foreclose the property. If you want to save the property, then the lender needs to modify the loan or you need to pay the dues on time.
If you want to get rid of the property, then you can apply for a deed in lieu of foreclosure. The lender will sell off the property but you won't be liable for any deficient amount.
Thanks,
Jerry
If you do not qualify for the loan modification option, then the loan will become an adjustable one. If you cannot pay the mortgage dues, then the lender will foreclose the property. If you want to save the property, then the lender needs to modify the loan or you need to pay the dues on time.
If you want to get rid of the property, then you can apply for a deed in lieu of foreclosure. The lender will sell off the property but you won't be liable for any deficient amount.
Thanks,
Jerry