Denied for mortgage modification program after waiting for over a year.?

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Welsh Fargo denied me for the mortgage modification. They stated that they denied because I am current on my mortgage loan and after reviewing the financial information I provided them, they have determined that I am not at risk of default. My husband has been unemployed for almost 2 years. He received unemployment benefits for the past year now benefits exhausted themselves and he is not eligible anymore. We are going to lose our house and just don’t know what to do. Please help with any advice.

The loan company had an appraisal done on our house and the 1st appraisal came in at 125,000 which was extremely low. When I had a second appraisal done it came back at 145,000 which was still low but acceptable. When I say low I mean that I had opinions made by other appraisers and real estate agents. Now, my loan company is telling me that it has been sent to an enhanced desk review and we will have to spare the cost. What is this?

  1. Reply
    April 29, 2011 at 9:10 pm

    The governement has a program to help you.
    You must make the first step and contact your mortgage lender – DONE.

    Google Making Home Affordable . gov
    The government is trying to prevent foreclosures.
    This non-profit may contact your mortgage lender and give them a push to help you.
    Call the 800 number on Monday – don’t do this by email.

  2. Reply
    April 29, 2011 at 9:35 pm

    It sounds like you need to reapply again, however, with no employment you are unlikely to qualify.

    Since your husband has been unemployed for years now maybe it is time to move to where he can find a job any way.

  3. Reply
    April 29, 2011 at 10:28 pm

    u have 2 “other” options……….

    a; see how quickly you can convert your house to an “assisted care facility”

    b; trade your house for something much less expensive. CALL real estate offices
    and see who handles trades–aka 1031’s.

    [c, sort of; see if someone would like to buy PART of your house and you live in it as
    majority owner]

  4. Reply
    ibu guru
    April 29, 2011 at 11:12 pm

    Practically everyone is being denied the mortgage modification program. And of those relative few who have been approved, over half default and go into foreclosure within 6 months, over 70% are in foreclosure within 9 months. They now expect a foreclosure rate in excess of 90% within one year. In short, it probably wouldn’t have helped anyway.

    What kind of work are you doing and are you earning enough to pay the mortgage? What else are you two doing to keep going? Have you tried to sell your house? Have you tried to rent it out (for more than the mortgage + taxes), while you move temporarily into a cheap studio or 1 BR apartment? Is your husband really, really looking and networking to get work, or just looking for what’s advertised, then applying? Has he picked up any odd jobs or day work?

    The Second Wave Down in this Depression is now starting. So you have to get your butts in gear really fast to save yourselves. That’s more important than saving the house at this point. Have at it, and good luck.

  5. Reply
    Big Tom
    April 30, 2011 at 12:00 am

    Seriously. If your mortgage is being paid as agreed and you are not behind then they would be ignorant to change the terms just because you want to lower your payment.

  6. Reply
    April 30, 2011 at 12:08 am

    You should have listed the house for sale the day your husband lost his job. Put it on the market tomorrow and pray for a short sale (or if you’re really ambitious pray to sell it for as much as you owe).

  7. Reply
    April 30, 2011 at 12:51 am


  8. Reply
    April 30, 2011 at 1:14 am

    guidelines have changed a lot if your employed you might be able to do the HAM(home affordable modification program) if the only source of income is unemployment you can no longer qualify for a modification he may need to find a job I know its really hard in this market but even if its part time income they can use that for possible modification if you have income call and apply again. The HAM does not require you to be delinquent but a traditional modification(a alternate type to the ham) does require you to be delinquent depending on the investor of your loan FNMA and FHLMC both require you to be delinquent so that is why you were denied. going delinquent will not help you to qualify though. Your income and expenses need to show your in a hardship but at the same time show you can afford to make a payment your net income minus all your expeneses need to be within 300 negetive or positive no more or less. If not then the last option would be to possibly look at a special forberance plan which would allow you to make 70-80% of your pmt for a few months if he is expecting to go back to work but the pmt your not making during that time is due at the end of the pmt plan so it might just put you in a worse situation. I hate to say it but if your not expecting the situation to change and you dont qualify for a mod traditional or HAM then you might want to consider selling the home or doing a short sale.

  9. Reply
    April 30, 2011 at 1:22 am

    First off I would need to know whether you are dealing directly with the actual lender or if there is a broker in between.

    Assuming you are dealing with the lender they are going to review the appraisal and find out why the 2nd appraisal is higher. THey are going to look at the comparable sales in the area as well as the details of your house compared to the oher houses that have sold to see if the age , quality , desirability are truly equal. they may be a concern with manipulating the appraisal. A technicality to protect themselves

    I wouldn’t think they are going to charge you for that…that seems a little fishy…maybe I misunderstood though.

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