Mortgage modification questions?

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I hope someone can help me. Here’s a little background-my husband and I own a home in NJ. Original mortgage is for $ 314k..currently owe $ 302k. Just received tax assessment stating home is now worth only $ 218k (over $ 100k less than we bought it for). I lost my job in ’09 losing over $ 40k in income. I had a baby in late ’09 and still have not been able to find work. My husband makes a substantial amount of $ $ ($ 85k/yr.) Now here is the problem, my husband is a laborer, and granted he makes this amount of money, but he can work 2 weeks straight-12 hour days…then he could have 3 weeks unemployed…so the money comes in, and we are playing catch-up. I have credit card payments, but I am doing a counseling program where I make 1 lump payment a month to all the cards. My husband only has a small amount of credit card debt. The smartest thing we ever did was cut up every single credit card since I was laid off. We are paying down our balances…totaling about $ 15k. Plus we have 1 car loan, $ 475/mo. (not including utilities @ approx. $ 1,000/mo My husband was recently laid off for 3 weeks, and we were late on our mortgage for the past 3 months…but not 30+ days…just after the 15 day grace period. I am trying to figure out if we are even going to be able to modify–Any help would be appreciated.

  1. Reply
    the kid
    April 30, 2011 at 11:51 pm

    “Just received tax assessment stating home is now worth only $ 218k” – tax assessed value does NOT indicate actual sale value.

    Modification only changes your interest rate, it’s not going to reduce the payment all that much.

  2. Reply
    May 1, 2011 at 12:19 am

    No since you income is INADEQUATE to qualify. No lender gives more then 3 times income which is 245k and that does not cover what you owe. Your credit is now poor so overall you can’t refinance or expect them to modify the loan

  3. Reply
    May 1, 2011 at 12:39 am

    No, they can not modify it enough to help you avoid foreclosure. If you will foreclose anyway they will not bother modifying the loan. No matter what the payments on 302 are going to be more then you can afford since you are not working.

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