We have an upside down mortgage. In order to make mortgage payments we pretty much maxed the credit cards. We were told by Bank of America the only reason we did not qualify for HARP was b/c we were 30 days late paying June 2012’s mortgage. They told us that since we did not have any other lates if we paid on time for the next 6 months we’d qualify for HARP. So we borrowed money from my in-laws for the mortgage and used the credit cards to make our other monthly bills. Since then BoA has turned us down for HARP. They’ve turned us down for a modification last year. Not only that but we have since found out that they sold our mortgage and as of May 31st 2013 they will no longer our servicer.
For the next 3 months BoA can’t help us and what’s worse it that once we are officially with our new company Green Tree they can’t help us because they can not loan in the state of New York. My wife has called around a few different places to see if they can refinance us. These are the places we see and hear ads for because the local banks won’t do anything because the house is under water.
She called Quick-in-loans the other day and they turned us down for 2 reasons. The first being we had that late payment in June 2012. The rep said that the guidelines they follow say we have no have had no late in 12 months.
The 2nd reason they turned us down was because we did not have enough income. My wife has been unemployed for a while. The rep said if my wife was able to find a job and show proof of working there for 30 days and pay 3 more months mortgage we would fall under the no lates in the 12 month category. It was at this point my wife told the rep that this probably wouldn’t happen because we’ve been borrowing from the family for months and we would/could not ask again.
My question is this: Quick-in-loans called twice today and left us messages stating we should call them back because they might be able to do something. Something about us being selected for a “2nd look.” I have not called them back yet because I’m starting to wonder if Quick-in-loans is a reputable company? If they are not can you recommend some company that is reputable? Our goal is to stay in the house if at all possible. Thank you.
You need to know that no bank is required to modify any mortgage. And I admit that trying to get a bank to modify a mortgage, even when they have an internal program is painfully difficult and there is no guarantee they will ever approve you. Readers have said that even after years of trying they have not been able to get the loan modified.
In your case, if the modification is what you want to try to do then I would suggest you call a free government subsidized HUD Housing Counselor. They can help you to determine if there is a program you qualify for that your bank participates with.
Regarding Quicken Loans, they are a legitimate loan broker but it sounds like you are getting a follow-up sales job. Since you have a fairly specialized issue you might want to find a local mortgage broker you can deal with face to face and develop a relationship with. The local mortgage broker will represent a number of different resources and can help guide you to a lending program that will fit your situation.
Be sure to first read How Not to Get Scammed by a Mortgage Loan Modification Company.
First you’ll need to determine your current debt-to-income ratio. The target debt-to-income ratio under the Home Affordable Modification program is 31%. Use this free online DTI calculator.
Mortgage Modification Calculator
The mortgage modification eligibility calculator will ask you several questions and then show you which programs you may be eligible for.
Free Mortgage Modification Help and Counseling
If you have questions about the process or eligibility you can call 888-995-4673 and get connected with an mortgage modification adviser for free. This help is provided by government subsidized HUD Housing Counselors and they can be a big help in navigating the modification process.
In order to assist you, the housing expert will need to gather some information from you. Have the following documents handy:
- Information about your first mortgage, such as your monthly mortgage statement.
- Information about any second mortgage or home equity line of credit on the house.
- Information about the monthly gross (before tax) income of all household members contributing to pay the mortgage, including recent pay stubs if you receive them or documentation of income you receive from other sources.
- Information about your savings and other assets.
- Account balances and minimum monthly payments due on all of your credit cards.
- Account balances and monthly payments on all your other debts such as student loans and car loans.
- Your most recent income tax return.
- It may also be helpful to have: A letter describing any circumstances that caused your income to be reduced or expenses to be increased (job loss, divorce, illness, etc.), if applicable.
You can also get free help and housing counseling from a local HUD approved counselor. You can find your local free housing counselor, here.
Contact Your Mortgage Company
Not sure if your mortgage company offers modification programs? Not all do. You can contact your mortgage company to ask them about mortgage modification programs you might be eligible for. Click here to find your mortgage company.
Want to know the net present value (NPV) of your home for the mortgage modification process? No problem, use the free NPV calculator to find out. The NPV calculator is right here.
The calculator can be used by homeowners who have been denied a HAMP modification because of their NPV result or can also be used by homeowners prior to applying for a HAMP modification to help them better understand the NPV evaluation.
No Advance Fees
The Federal Trade Commission has a Mortgage Assistance Relief Services Rule which prohibits advance fees for mortgage rescue services or mortgage modification help.
Please post your responses and follow-up messages to me on this in the comments section below.
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