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Attyadvisor
Attyadvisor, Attorney
Category: Real Estate Law
Satisfied Customers: 6725
Experience:  29 years of experience in General Practice, Real Estate Law and Estate Law.
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I am interested to apply loan modification with my mortgage

Customer Question

I am interested to apply for a loan modification with my mortgage servicer. I stopped earning business self employment income. Before I had that and social security. My gross social is $2670 approximately. My wife also gets social security ($930 gross)
who lives in our home. We file taxes married filing seperate. My daugher pays $600 in rent per month. Would the mortgage servicer acknowledge contributions from a non-borrower besides my wife as a non-borrower as supplemental income that would be acceptable
on the hamp or other loan mod application? Do they need two bank statements or more to verify the non-borrower contributor?which if any? Do they need a letter/statement from that non-borrower? Do they do a credit check? Do they need or require or count the
non-borrowers entire wage income as the amount of the contribution or just the amount that they give per month?
Submitted: 1 year ago.
Category: Real Estate Law
Customer: replied 1 year ago.
The mortgage servicer says that the reinstatement amount is over 86k.
They have been returning monthly payments since Feb 2014 or 2013.They previously made an offer to resolve the default in Nov 2013 after offering a permanent approval of a hamp after a successful trial. Their hamp increased the monthly by 1k. So I accepted their second offer. I paid their flat one time fee and they refused to honor the deal and kept the money. The DFS and Ag is unproductive.
Then I applied for another loan mod and had the housing counselor submit the whole package.
Ocwen made contradictory claims that they did not receive a dodd frank (though they did so they want new info) and start the process all over again. They received a complete package and I believe that we would have qualified for a hamp mod.
They wont tell me if they approved or denied the loan mod app.
They are offering To consider yet another app.However they sent and I received today, a certified letter to myself and a seperate to my wife, co-owner that the mortage is in default and they may foreclose.we were never served with foreclosure papers.
Customer: replied 1 year ago.
I found out recently after calculating the escrow to taxes and insurances that the total they were charging did not match up.
Then I found out that they were creating an escrow cushion over $200 per month.
That makes our escrow over $1950 per mo which is expensive.
Is there a way to get them to drop their escrow cushion?
Imam trying to lower prop taxes but it is not instant.
I Previously lowered the prop tax by an appeal showing the under water value with a certified appraisal to the county.
This time the county would not lower it and sent an inspector despite an appraisal and comparables.I dont know the outcome though he verbally acknowledged that the house is comparable to a knockdown just worth the land.
He is overinflating the value of the land.Fyi,
My wife and I are senior citizens.
I would apply for enhanced star prop tax deduction but the county will only rely on the prior years tax return when I had self employment income.
Expert:  Attyadvisor replied 1 year ago.

Many people are surprised to learn that you can go through a HUD counselor directly for a loan modification.

Have you tried this avenue or contacting your state for assistance?

Customer: replied 1 year ago.
Please review my entire info.
Yes I used a hud counselor.
Customer: replied 1 year ago.
I need the answers before communicating with another hud counselor.
Customer: replied 1 year ago.
I used them in the past when I had self employment income besides social security.
Expert:  Attyadvisor replied 1 year ago.

I am sorry I did not see that you worked with HUD directly, only that you were working with your servicer.

This is what I see

"I am interested to apply for a loan modification with my mortgage servicer. I stopped earning business self employment income. Before I had that and social security. My gross social is $2670 approximately. My wife also gets social security ($930 gross) who lives in our home. We file taxes married filing seperate. My daugher pays $600 in rent per month. Would the mortgage servicer acknowledge contributions from a non-borrower besides my wife as a non-borrower as supplemental income that would be acceptable on the hamp or other loan mod application? Do they need two bank statements or more to verify the non-borrower contributor?which if any? Do they need a letter/statement from that non-borrower? Do they do a credit check? Do they need or require or count the non-borrowers entire wage income as the amount of the contribution or just the amount that they give per month?

The mortgage servicer says that the reinstatement amount is over 86k.They have been returning monthly payments since Feb 2014 or 2013.They previously made an offer to resolve the default in Nov 2013 after offering a permanent approval of a hamp after a successful trial. Their hamp increased the monthly by 1k. So I accepted their second offer. I paid their flat one time fee and they refused to honor the deal and kept the money. The DFS and Ag is unproductive.Then I applied for another loan mod and had the housing counselor submit the whole package.Ocwen made contradictory claims that they did not receive a dodd frank (though they did so they want new info) and start the process all over again. They received a complete package and I believe that we would have qualified for a hamp mod.They wont tell me if they approved or denied the loan mod app.They are offering To consider yet another app.However they sent and I received today, a certified letter to myself and a seperate to my wife, co-owner that the mortage is in default and they may foreclose.we were never served with foreclosure papers.

I found out recently after calculating the escrow to taxes and insurances that the total they were charging did not match up.Then I found out that they were creating an escrow cushion over $200 per month.That makes our escrow over $1950 per mo which is expensive.Is there a way to get them to drop their escrow cushion?Imam trying to lower prop taxes but it is not instant.I Previously lowered the prop tax by an appeal showing the under water value with a certified appraisal to the county.This time the county would not lower it and sent an inspector despite an appraisal and comparables.I dont know the outcome though he verbally acknowledged that the house is comparable to a knockdown just worth the land.He is overinflating the value of the land.Fyi,My wife and I are senior citizens.I would apply for enhanced star prop tax deduction but the county will only rely on the prior years tax return when I had self employment income."

Is it possible to add the daughter or wife as a co-borrower?

Expert:  Attyadvisor replied 1 year ago.

http://portal.hud.gov/hudportal/HUD?src=/states/new_york/homeownership/foreclosure

What they want is income they can count on by virtue of the other financial contributors being added as borrowers to the loan.http://www.dfs.ny.gov/consumer/hetpopts.htm

Customer: replied 1 year ago.
if it matters, I had some debts discharged in chapter 7 back in 2012.Probably not compantible for daughter as a co-borrower who has ssi to be a coborrower or wife with social security in that their credit reports are adverse due to credit card debt.Son, visits and can contribute. He has a local bank account showing my residence.Side question, Would the servicer accept a bank statement of my wifes for the supportive docs if my name is ***** ***** the statement and I am not an account holder on her account?
I would be able to show contributions from her sole account.
Alternately Would they accept it ina corp name?
Expert:  Attyadvisor replied 1 year ago.

Thank you for the clarification. I understand.

The issue becomes that just because your wife has finances doe not mean that she is obligated to pay the mortgage. They would want to add her as co-borrower. I under the situation is very frustrating. Unless this was a stable source of income paid directly to you it would not help unless she signed on as a borrower.

Expert:  Attyadvisor replied 1 year ago.

You can try to resubmit under an LLC however all members of the LLC would be bound by the loan.

Expert:  Attyadvisor replied 1 year ago.

The key is that the borrower(s) make enough to pay the loan. Outside income that is not court ordered would not qualify. Is it at all possible that the wife would sign?

Expert:  Attyadvisor replied 1 year ago.

"When it comes to your home and your mortgage you have certain rights under the law.

Contact a Not-For-Profit Housing Counselor

Housing counselors that handle foreclosure-related issues can give you advice on your options and resources at little or no cost. They may also be able to negotiate with your lender for free and help you find free legal services in your area.

Find an approved not-for-profit housing counselor in your area

Homeowners seeking counseling or advice can also call the 24-hour toll free HOPE NOW HOTLINE at 888-995-HOPE(###) ###-####. HOPE NOW is an alliance of HUD approved counseling agents, servicers, investors and mortgage lenders that provide free foreclosure prevention assistance.

If you live in New York City, you can also call the Center for New York City Neighborhoods (CNYCN) at 311 or(###) ###-#### ***** partners with more than 50 agencies and coordinates foreclosure prevention and intervention services in all five boroughs. CNYCN can help you find the right services for your needs."http://www.dfs.ny.gov/consumer/mortg.htm

Expert:  Attyadvisor replied 1 year ago.

If your servicer is playing games with you escrows you can contact the FTC at http://www.dfs.ny.gov/consumer/mortg.htm

as well as the NY Attorney General at http://www.ag.ny.gov/consumer-frauds/help-homeowners

Customer: replied 1 year ago.
I already had complained to the DFS and Ag, about the resolution that they did not honor, see above. They were unproductive. Ocwen wasted their time with false information.If she would not be a co-borrower, and her income is not any higher as before, just social security, and she is still a contributing non-borrower, wouldnt it be beneficial to have my son contribute amd would the mortgage servicer acceot that as income?
Expert:  Attyadvisor replied 1 year ago.

The person that contributes needs to be a co-borrower or thet have no obligation to the lender to pay.

The best bet would be to show up in court and tell your side of the story. The other option is having an attorney represent you. There are many legal aid and Pro bono attorneys that assist in these matters, I know because I provide these services as well, unfortunately we are not permitted to engage in an attorney client relationship with the customers on the site.

Your issue is that you need a co-borrower to satisfy the lender’s income requirements or a reduced loan.

Which county are you located in so I can provide links for Pro bono and legal aid attorneys.

Customer: replied 1 year ago.
do you think that if there was another 4k contributed to the household besides the $4200 from social security and rent. without adding another borrower, the loan mod would be denied or the servicer would look at the application unfavorably?
Customer: replied 1 year ago.
Nassau county.
Unfortunately I have been unsuccessful at getting a Pro bono attorney or from legal aid.
Customer: replied 1 year ago.
In the past my wife was a contributor not a co-borrower, but I had biz income that supplemented the social security.
And we qualified for a Hamp.
We just didnt accept the permanent loan mod because it was an extra 1k, per month and they offered a second resolution option but they did not honor it.
Customer: replied 1 year ago.
Also, what if in emrgency we had to file chapter 13. Would we qualify for a loan mod? Again the house value is under water.Fyi, I just submitted an application to the irs for currently uncollectible status collection hold. Would bankruptcy disrupt the irs collection hold?
Expert:  Attyadvisor replied 1 year ago.

That is typical.

Unless this was court ordered payment such as alimony there s no guarantee that it will be paid. All the lender cares about is having someone else on the hook. Let me check with the American Bar Association. They may be more helpful,

https://apps.americanbar.org/legalservices/findlegalhelp/pb.cfm?id=NY

Thank you for using JA! We appreciate your business. If you would rate my service positively so I may receive credit for my work I would appreciate it.

Customer: replied 1 year ago.
Again would Ocwen accept a bank statement from my wife as a nonborrower contributor as one of thesupporting bank statements that has some income. My name is ***** ***** the bank statement.
Expert:  Attyadvisor replied 1 year ago.

BK stays/stops the foreclosure. Again the lender want the person that would be contributing to be a co-borrower or the lender has no ability to force their payment since they did not sign the loan obligation.

Expert:  Attyadvisor replied 1 year ago.

If the money were going to directly to you that would be another matter as would her signing as co-borrower. Only those people that sign the note and mortgage are obligated to pay.

Expert:  Attyadvisor replied 1 year ago.

Explain the situation to the court. They may require the seller to accept your payments and dismiss the proceeding.

Expert:  Attyadvisor replied 1 year ago.

As a general rule a lender is not required to provide a loan modification unless the borrower qualifies on their own, I think people are under the misconception that lenders are required to provide a modification and unfortunately that is not the case. These are factors that the lender takes into consideration http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/nsc/faqlm

Thank you for using JA! We appreciate your business. If you would be kind enough to rate my service positively so I may receive credit for my work I would appreciate it.

Customer: replied 1 year ago.
I am not in bankruptcy at this time. I was just discussing it as an option.
Also, please also respond to some of the questions above ...regarding the world irs and
Again would Ocwen accept a bank statement from my wife as a nonborrower contributor as one of thesupporting bank statements that has some income. My name is ***** ***** the bank statement.
Expert:  Attyadvisor replied 1 year ago.
No, ocwen is only interested in income you receive such as social security or wages, disability etc., in your name. They have no interest In your wife's bank statement if she is not a co-borrower. They want her signature on the loan documents and only then would they consider her finances. This would be the same for your children or other relatives. Is there some reason your wife would not qualify as a co-borrower? The restrictions have tightened from the days of no doc loans that caused the financial collapse. Filing a chapter 13 would stop/stay the foreclosure. This may be an option. I did not see a question on world irs. Owen is notorious for stringing people along and then not approving a loan modification. I wish I could provide you with the answer you would like to hear however the income coming from other sources would need to be court ordered or from co-borrowers. I apologize for being the bearer of bad News I hope you will not be unhappy with me for providing an honest answer even when it is not the answer you wanted to receive.
Customer: replied 1 year ago.
Could my wife buy my interest in the house since the value is severly under water?
Is there a minimum amount to pass the smell test?
Could this be done without the consult of the mortgage servicer or anyone else, irs, etc.?
I would like to protect my home as an asset. I owe taxes that I will ultimately apply for with an offer In Compromise. Recently applied for a currently uncollectible tax enforcement collection hold.
Also, I had asked if I put some of my income and our combined income into my wifes bank account, and have to provide bank statements to Ocwen, will they accept the bank statement for the loan mod if the bank account is only in her name?
Expert:  Attyadvisor replied 1 year ago.
She would need to buy the property for the amount that is owed on the mortgage. The lender will only apply the bank statement if she is added as a borrower. Only a borrower's income is taken into consideration. You can sell the property in a short sale to a third party (not your wife or a family member) provide the lender with a deed in lieu of foreclosure or file for bankruptcy. The only other option is a loan modification with a credit worthy co-borrower. I am sorry that this is not the answer you were hoping to receive.
Customer: replied 1 year ago.
An attorney cpa
said that my wife could buy my interest in the home for my share and since the value is under water the amount she could pay would not have to be that much.
Expert:  Attyadvisor replied 1 year ago.
What you are referring to is called a short sale which is permitted between parties that are not related. If your CPA believes he can get your lender to agree to a short sale he should contact the lender and receive their permission. If these were legally permitted family members would be exchanging property that is underwater all of the time. Unfortunately the rules are very strict and unless she is your ex wife this is not likely to happen. Does your CPA also have a law degree? You can certainly try to resubmit with your wife's income since she is not a borrower you would have to see if they would be willing to accept it. The rules are very strict and the best bet is for you to have a co-borrower if that person's income brings you to the level to be qualified. Thank you for using
Expert:  Attyadvisor replied 1 year ago.
Sorry this portion did not post.

"Short sales, or selling homes for less than their mortgage balances, are an increasingly common alternative to foreclosures. In some cases, you can short sell your home and your lender will forgive any negative loan balances as well. However, to short sell your home you'll first need your lender's permission and you'll have to abide by its sale rules. One home short sale rule almost all lenders enforce is that homeowners can't short sell their homes to relatives.



Fraud Prevention Measure

Mortgage lenders require short sales to be "arm's length" transactions between sellers and buyers. Home short sale arm's length transactions rules also prohibit sales between relatives as a fraud prevention measure. For example, you might short sell your home to your sister at a steep loss and have her sell it back to you at her purchase price. By short selling your home to a relative and then repurchasing it after the lender writes off the loss, you've ducked significant mortgage debt."

http://homeguides.sfgate.com/can-someone-related-purchase-short-sale-58936.html

The only other thing you may wish to try is to see if a family member can rent a room in your house and if the lender would accept a signed lease as income.

Customer: replied 1 year ago.
My daughter already rents a room for $600 per month. We have a lease. We have applied for a loan mod a few months ago when I had business income to supplement social security, my wife's ss as a contributing non-borrower and daughters rent.
I believe that I would have been approved for HAMP.
However, the housibg counselor submitted the docs on the first of te month instead of before when I instructed her.
Then there was no response after thirty days. The AG office had communicated with Ocwen to make sure that they begin processing the application. No response after thirty days then when the ag office inquired Ocwen said that because they did not receive certain docs like the dod frank from me, they need a whole new package and the prior is out of date. I believe that te dodd frank was submitted with the rest of the docs. I think that Ocwen is lying.I stopped earning business income but can regroup to bring in other income like more rent or an other kind per your suggesstion. However it will take two more months so I can show them that new income on the bank statement. I would prefer to show contributions made by another non-borrower family member. Does the contribution amount need to be consistent every month? Will the borrower accept that as the additional income?
Customer: replied 1 year ago.
The contributors money was deposited into my wifes account. My name is ***** ***** her bank statement. Would Ocwen accept that bnk statement as one of the supporting bank statements if my name is ***** ***** it?
Expert:  Attyadvisor replied 1 year ago.
If you can somehow prove the money is yours even though your name is ***** ***** the account the underwriter may be willing to accept the statement. I am glad the AG was helpful since their job is to protect and assist consumers. As far as rent this would be an underwriting decision as well and each underwriter has their own policies. A consistent amount of rent would be looked upon more favorably. This is certainly worth a try. Thank you for using JA. Let me know how everything works out. Best wishes.
Expert:  Attyadvisor replied 1 year ago.
The only other thing you may wish to try is to see if a family member can rent a room in your house and if the lender would accept a signed lease as income.
Expert:  Attyadvisor replied 1 year ago.

I wanted to follow up with you to see how the situation turned out for you with the loan modification?