Need a loan mod and chapter 7

[hereforinfo]

You will have to show all sources of income, so if he's taking draws from the business and it's counted as income on your tax returns, then you have to disclose that. I don't think the mod on the 2nd mortgage will have any negative effect for you. Basically what they want to do is get your mortgage payment down to about 31% of your gross income by lowering the interest rate and possibly extending the loan to a 40 year. As far as I know, they aren't concerned about your other debts.

[2Bshinyandnew]

I just re-read that your total monthly household gross income is $73000. Is this correct? If so, HAMP might be little help to you. You must include income from all sources even if a spouse is not on the mortgage. They are going to ask for most recent paystubs as well as most recent tax returns, so unless you recently became unemployed yourself, your income must be included.

Even so, if your planning on filing for BK, it's useless to pay those monthly CC minimums unless you have recent balance transfers, cash advances or luxury purchases.

[2Bshinyandnew]

Since I plan on filing for bankruptcy eventually, I stopped paying the minimums on my 70K of CC debt and DID not include those payments on my expenses for my HAMP application. My application was submitted through ACORN housing to my servicer and the ACORN rep said if I wasn't paying the CC I need not include them on my application. In fact she said it can look BETTER for your chances at a MOD because your mortgage should always get paid before your CC. They are going to pull a credit report anyway. What matters for HAMP is:
~principle residence
~monthly PITI is greater than 31% of your gross
~Loan is less than $730K (approx)
~must have a hardship

Your unsecured debt really does not factor into the equation unless YOU add it in and that gives them a reason to deny you.

Some of my CC have gone unpaid for almost a year, and I haven't heard anything. It takes awhile for your unsecured creditors to get a judgment. The very soonest they would file suit, and RARELY do they do this so soon is 6 months. Chase and Capitol 1 may file sooner for amounts that they can file in a small claims/lower court, usially less than $3000. It then takes a few more months to go through the legal process, so at a minimum your looking at 9-10 months AT LEAST from the last payment to a judgement, and that would be a super-fast turn around. It's more likely double that.

If your planning on filing BK your just throwing that money out the window. Apply for a mod, if your eligible, finish out the 3 month trial period so that the mod is permanent and then file for BK. This process I'm guesstimating should take 9 months.

I still have not gotten my mod yet. Although HAMP is supposed to help even if your not late, my request has been under "review" since May. As of August 1st I am 30 days late. Because my HAMP request is being reviewed there has been NO collection activity from my mortgage servicer. The gal I spoke with in loss mitigation today told me that now that I'm late I will probably see some progress on my mod, although it's NOT supposed to be that way.

check out this:

https://www.efanniemae.com/sf/mha/mhamod/#

If you are in trouble and can't pay your mortgage, your unsecured debt goes to the bottom of the heap, especially if you plan on filing BK. If you file BK first, the automatic stay makes it very difficult to work on a mod so your bettter of applying and completing a mod and then filing for bankruptcy.

ALSO, I would check on this but I think NC is a non-garnishing state except for child support, taxes and the like. If so, those unsecured creditors are SOL, even with a judgment, which will get discharged with your bankruptcy, they can't collect anything, unless you have a ton of $$$ in a bank account which they can easily find.

[Lovesgirl]

We are going to try to get a loan mod with harp. My husband makes on his W2 $1947 per month gross. Our payment for 1st mtg is $1326. He is the only one on the mortgage. He and I work for a corporation and pay bills out of the corporation and checks if we need money. At the end of the year, the tax guy allocates it all to joint return as income, adjusted gross income. Can we do the Harp by just showing the W2 and if so, we might be declined because of not enough income to pay monthly expenses and the new house payment. But if we show the adjusted income jointly it is about $73,000 (course mine could be taken out). We do have about $40,000 in credit cards that cost us $1600 a month and I can come up with more expenses that currently the corporation is paying. Just not sure which way they will go, W2 or tax return? If we send his credit cards to CCCS thereby reducing our monthly expenses, will that hurt our chances of a loan mod thru HARP/BOA? if we file chapter 7 now, will that hurt our chances of a loan mod thru HARP? we are current on our mortgage and never been late.

We hvae a second mtg with BB&T for about 37,000 at 8.75 percent. They can give us lower rate about 6% but have to keep it at 15 years so we'd only save $70 a month. if we do that loan mod, does it affect us being able to do the 1st mod with hARP?

We really need to get out of the credit card payments but know the loan mod could take months and don't want to give them time to come after us before we can file bk. Doing a DMP would reduce our payments and help a little but I don't want to do it if it will hurt us.

Please advise if you know anything about this situtation. WE are in NC.