my husband recently lost a job got a new one 2 mo later then 1 mo later i now lost my job we are almost 3

Asked by Deborah, Port Richey, FL Mon Feb 9, 2009

months behind in an upside down mortgage. we owe more than we make. can the mortgage company still do a loan modification? or do we have to have totally enought to pay present day bills first?

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Jacqueline Clarke’s answer
Jacqueline C…, , Orlando, FL
Mon Feb 9, 2009
Dear Deborah,

As the other writers have said, contact your bank first. Ask for the loan mitigation department and be prepared to submit a list of your monthly expenses along with copies of your most recent paystubs.

It has been my experience that the banks usually don't respond immediately.

I also refer clients to ACORN and Consumer Credit Counseling. These non-profits do not charge a fee to contact your bank and work out new terms.

Good Luck,
Jacqueline Clarke
1 vote
Trey Miller, , Tampa, FL
Mon Feb 9, 2009
Hi Deborah,
Sorry to hear about your situation. Call your lender and tell them about your difficulties. They may be willing to work with you. Honestly, the bank does not want to take possession of your home if they can avoid it. If the lender is not willing to do a loan modification they may recommend a short sale. Based on your statement I would say that you would most likely be approved for a short sale. Contacting your lender is vitally important, please do it right away.

Trey Miller
Prudential Tropical Realty
1 vote
Ryan Branden…, Mortgage Broker Or Lender, Boca Raton, FL
Wed May 27, 2009
I am sorry to hear about your unfortunate situation. First thing you want to do is stay away from all of the solicitation for loan modifications and loss mitigation support. Most of these companies are owned by ex-subprime mortgage compnay owners and are nothing but scams! There is plenty of FREE help out there and you DO NOT have to pay a nickle for it.

Your lender is propbably is offering the Obama Administrations Hope for Homeowners Programs. The unfortunate part is you need to have a job or some form of steady income to be approved for this modifiacation. They will not lower your principle balance but they will reduce your mortgage payment to reflect 31% of your income. If you are collecting unemployment they will also allow you to use this income in your ratios.
If you do not qualify for this modification you need to explore the alternatives of either a short sale or Deed in Lieu of Foreclosure. Your lender can help you structure these alternatives at no cost and im sure one of the great realtors with Trulia can help you get your house listed.

Best of Luck to you and your family!

0 votes
Lana Robbins…, Agent, Beach, ND
Wed May 27, 2009
Sorry to hear about your situation. I have worked with some homeowners who are concerned about the basics like food, water, and shelter. I know this is late but I hope you have contacted your lender(s.) Sometimes they work with you. In my experience many of them have been helping homeowners so it does not hurt to ask.
0 votes
Julie, , 33901
Tue Mar 31, 2009
The HOPE for Homeowners (H4H) program was created by Congress to help those at risk of default and foreclosure refinance into more affordable, sustainable loans. H4H is an additional mortgage option designed to keep borrowers in their homes.

The program is effective from October 1, 2008 to September 30, 2011.
Borrower eligibility: Lenders that determine the H4H program is a feasible and effective option for mitigating losses will assess the homeowner’s eligibility for the program:

The existing mortgage was originated on or before January 1, 2008;

Existing mortgage payment(s) as of March 1, 2008 exceeds 31 percent of the borrowers gross monthly income for fixed-rate mortgages; For ARMs, the existing mortgage payment(s) exceeds 31 percent of the borrowers gross monthly income as of March 1, 2008 OR the date of the new loan application.

The homeowner did not intentionally default, does not have an ownership interest in other residential real estate and has not been convicted of fraud in the last 10 years under Federal and state law; and

The homeowner did not provide materially false information (e.g., lied about income) to obtain the mortgage that is being refinanced into the H4H mortgage.

You may also want to check to see if The SHIP program in your county can help you.

Please feel free to email me I would be glad to try and help I am a licensed Mortgage Broker in Florida
0 votes
Lars Kier, Agent, Wesley Chapel, FL
Mon Feb 9, 2009
As the rest of the group said, contact your bank, they are slow in dealing with you. But keep trying, if not I know a company that can help, they do charge for their service, but well worth it if you cannot get it done.
For information or help, call me or e-mail me
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0 votes
Lisa Reeves, Agent, Tampa, FL
Mon Feb 9, 2009
If you try to work with the lender and it seems like you aren't getting anywhere - try a modification company. Having representation can help you get rate reduction and sometime principle reduction. I have attached an article about finding the right company and avoiding scams. I have their contact information if you need it. Good-luck
0 votes
Dallas Texas, Agent, Dallas, TN
Mon Feb 9, 2009
Contact lender determine how they can work with you. You will have request for hardship package complete all required paperwork. Lenders dont want your property returned hopefully you can resolve a "happy solution for all parties" you dont want damage to your credit scores.
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