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Ask Law Educator, Esq. Your Own Question
Law Educator, Esq.
Law Educator, Esq., Lawyer
Category: Consumer Protection Law
Satisfied Customers: 116716
Experience:  Attorney experienced in commercial litigation.
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I will ask my question under this category though i;m not

Customer Question

Hello I will ask my question under this category though i;m not 100% certain it belongs here. My question has to do with Mortgage Loan Modification. Specifically, I'm referring to the Hardest Hit Fund Nevada. We applied as an elderly disabled
couple on a fixed social security income. We provided lots of documents and then ran into a problem with an underwriter. This underwriter noted direct deposit income that belongs to my son who stays in our home but who has a limited income for his own expenses
and DOES NOT PAY US RENT. We suffered loss income due to a death in the family at the end of 2014. We started feeling an overburden of expenses in 2015 and fell behind on our mortgage and other expenses. We are seeking Principal Balance Reduction assistance
from the Hardest Hit Fund in our state. Well the underwriter seems like she is purposely trying to deny us. She demanded paystubs be provided to them although our son is NOT on the Mortgage Loan or title of the property. After receiving the information she
cameback with a DENIAL on the grounds that "Household ratio DOES NOT EXCEED 38% of Gross household Income." My question is the following. I have read the underwriting guidelines and DO NOT find anywhere where it mandates that INCOME from OTHER PARTIES NOT
on the MORTGAGE DEED/LOAN/DEBT need to be disclosed and COUNTED as part of the determination on eligibility or what kind of modification options can be offered. As far as we are concerned only I and my spouse are on the hook for the mortgage debt and only
we pay the Mortgage Company. When we consider the guideline that says that our PRE-ASSISTANCE PAYMENT including escrow amounts MUST BE GREATER THAN 38% of Gross Monthly Income and it DEFINITELY is so for myself and my husband. we have a serious problem with
this BOGUS DENIAL. What this underhanded underwriter is doing is trying to fabricate additional income to me and my spouse by hijacking my disabled sons income and tabulating it as part of the mortgage debtors income, when in truth is NOT. When she adds his
income to ours then yes the current PITI payment is NOT GREATER than 38% of that total gross monthly income. I had tried to read program guidelines that mandate that ALL INCOME in the household must be disclosed and CALCULATED as part of any Modification granted
under Hardest Hit Fund but I have found NONE. Our home is UPSIDE DOWN by atleast 30% and perhaps as much as 40% when considering how much we owe to the Mortgage Company and what the prevailing value of properties in our area are and the fact that is home is
OLDER and needs repairs. We sought Hardest Hit Fund outside of any HUD counseling Agencies or working direct through BOFA for the Principal Balance Reduction to cure our NEGATIVE EQUITY STATE. Please guide us and help us resolve this issue in a fair manner
which is the principal balance reduction to atleast put us at a 100% LTV ration on our home and accordingly make our payments more affordable. Thank you for your time.
Submitted: 1 year ago.
Category: Consumer Protection Law
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes only.
You can appeal the decision of the underwriter on the basis that the guidelines do not mandate including the income of a party not on the loan. The issue you have is that while he may not be on the loan, there is direct deposit of funds showing into your account, which then allows the underwriter to include that income at the discretion of the underwriter, even if he is not on the loan because it is going into your bank account. So this is a legitimate reason for them including his income and now on appeal it is up to you to show he is not paying you that money as rent or the money is not going towards your personal bills but is paying his own separate bills to seek to have that income excluded from the underwriter consideration.
Customer: replied 1 year ago.
Well sir to clarify further. The reason why the Underwriter saw his income listed on Bank Statement we provided her is because I and my son have accounts in common meaning "JOINT ACCOUNTS". You are right he has his own expenses. Whereas he may contribute to a utility bill or some other household related expenses it is of an incidental nature and DOES NOT include paying "Rent" or allotting me x dollars to pay toward the Mortgage Payment. This son is disabled and is in our home due to those circumstances. The amount of income received is approximately $1000 per month and he has no medical insurance hence medical expenses as the biggest part of where he spends money.
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your reply.
You have to file an appeal on this matter and provide the evidence to HUD and the mortgage company, since they are the parties that control this program and any appeals must go directly through them. That is the next step you need to take.
Customer: replied 1 year ago.
Well this particular matter is going through Nevada Affordable Housing Assistance Corporation and its independent of Bank of America Home Loans whom I'm NOT working with at the moment. What I was asking through the Justanswer service is to find an attorney experienced in Mortgage Loan Modification and the government programs that are out there to help distressed home owners. I was looking for you to verify the actual regulations/rules to confirm that this Underwriter technically has NO right to take someone elses income and call it 100% my own or that of my husband. Where as this is a Community Property State a JOINT ACCOUNT between a Mother and Son DOES NOT mean that his money is my own money. That is where the flawed logic of the underwriter is. What I needed from you was the actual regulation/rule is there is one allowing that underwriter to use her "discretion" as you put it to count that extra income or for you to DIRECTLY say to me THERE IS NO SUCH RULE. God only know what the appeal process will be like or how long it would take and we needed the financial assistance NOW. Thank you for your time.
Expert:  Law Educator, Esq. replied 1 year ago.
Thank you for your reply.
We cannot actually represent anyone from this site. As I told you, there is a right of appeal through the NV Housing Corporation, which is your next step. The underwriters have the final say on these loans, subject to your appeal to the corporation of the decision. That is your next step. The guidelines say all available income is to be considered, since the money went into your joint account that is available income until you prove otherwise on your appeal.
So you have been given your next step in the process, appeal to the NV Housing Corporation to prove that this was not available income as it did not belong to the borrower and was not available for your use.

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