Monthly Archives: June 2015

What if I’ve lost my income?

Lost incomeWhat if I’ve lost my income? Is a loan modification possible then? We’re not underwater, so I feel the bank is less likely to by sympathetic since we won’t walk away. I’d like to keep our home and feel that eventually we’ll be working again, but we need help through this difficult time.

I can’t collect unemployment because I still own a business. The business hasn’t been able to pay me for nearly two years and in fact I’ve been putting money into it to the point where I’m nearly broke. The trend is currently up however, and I think we could be making money again by the end of the year if we can hold it together that long. What we need is a pause in our payments. I’ve been paying mortgages steadily since 1975 and I’ve never been late with a payment, but somehow I don’t think that will get me anywhere.

If you use a Fed. Credit Union, see if they have a card. I did just get the go ahead to tranny about 3100.00 of high interest cc debt to one of my FCU’s cards for 13% APR.

I got my plastic, took down the acc # and sec code, and cut it up.

Sometimes you need the number and sec code to change your password and such, but I might never need that… but no actual card in my hand.

But this’ll give me a leg up in beating those two higher interest debts down.

Justin K.:You need to talk with your bank. I know the bank that I work for will use unemployment benefits as income, others will help you in different ways. Many lenders are willing to do a moratorium on mortgages if you can meet a given set of conditions. I do not work in that depart in my bank so I could not comment on the criteria, but I do know that we offer 6 month moratoriums. The big downside to this is that at the end of the term all 6 payments are due.

Regarding Self Employment, we will look at 12 months of bank statements (business only, at 50% of total deposits) to determine income for SE borrowers who have not drawn a personal paycheck in awhile.

Again, I would highly recommend that give your bank a call. If they have received money from the FDIC programs they work off of very similar guidelines, aka FDIC mods.

Hope this helps.

The answer to that would be no. Asking for a Loan Mod, or even receiving one from the bank that I work for will not impact your credit score at all. What will impact your score, and I see this all the time, is when someone applies for a Mod, and decides not to continue paying their current mortgage. I would recommend that if you have a financial hardship talk to your bank, they do not want your house, they have too many REOs as it is. If you do not actually need a Mod, but you are attempting to get one because “everyone else is getting one” please do not apply, I turn down about 40-50 applications a day because there is not an actual hardship.

Loan Mods are for people who are suffering a financial hardship. If you are, please call your bank as soon as possible, right now we are taking 60+ days to book a loan mod from the time we receive the WOP (work out package).

Call your mortgage company and tell them

Mortgage companyCall your mortgage company and tell them you are having a hardship and want to know if a loan modification is possible. I did it with my HELOC and got the 3 parts of my HELOC reduced as follows for 1 year:7.29% down to 3% 8.29% down to 3% 3.4% down to 3%. In addition one of my loans is having payments postponed until the end of May 2009. I’ m waiting for my first mortgage company to process a similar request.

Thanks for the information about the loan modification. I did call my bank, and I am in the process of getting all my documents together to present to them. They have a committee that meets once a week (it is a small bank) to consider the loan modifications.

Well, if a client of ours is interested in a loan mod, I would recommend that they contact customer service (call the number on the mortgage statement) and let the rep know you need to speak with someone in Loss Mitigation, or that you are suffering a financial hardship and need help with the monthly payments.  The CSR will be more than happy to transfer you to the right department.  If you are currently deliquent the same conversation can be had with one of the mortgage collectors.

I do not think I should disclose which bank I work for, but it is one that received bailout money, and FYI, the FDIC is actually defining what and how loan mods are done.

Hope this helps.

Has anyone else noticed that it’s impossible to get new cards with a large enough limit to transfer balances?

We currently have a chase cards with 16.99 percent that I don’t think we’re making any progress on.

Does anyone have any advice for me?

There is website that you can check out about

U.S. Department of the TreasuryThere is website that you can check out about the new stimulus plan that will kick in on March 4th.

It is If you have a loan that is Fannie Mae or Freddie Mac, you might be able to refer to a fixed rate 15 or 30 yr loan at the current interest rate. There are qualifications that must be met.

Check out the website. I am in Customer Service with a Mortgage Company so I also get a little inside info. If you want to apply for that on March 4th, you can start gathering documents that you will need:

  • info about the gross monthly income of everyone listed on the loan,
    including your most recent pay stubs and other income you receive.
  • your most recent income tax return.
  • info about any second mortgage on the home.
  • payments on each of your credit cards if you are carrying balances
    from month to month.
  • payments on other loans such as student loans and car loans.

Have a great weekend!

It Really Does Make A Difference

I do something similar, and it really does make a difference.

I pay all my bills twice a month, as soon as I get paid. I divide all my payments in half (plus add $10 extra to each CC minimum) and pay that amount. The card I’m working to pay off first gets every other spare cent. By paying twice a month, my debt has really started to decrease much faster than before.

I highly recommend this practice–it does reduce the daily balance, so it helps drop your balances faster. It may take a little juggling to get it set up at first, but it’s worth it in the long run.

If you, like many people, are just having a hard time paying your bills at all, start with the minimums. It’s all about doing what you can to get rid of this albatross we’re all carrying.

Loan Modification Question

Loan modificationAfter doing some research on our finances regarding our ARM mortgage, I have come to the conclusion that we need to do a loan modification. When I had talked to the refinance guy a couple of months ago he said my FICO score was not high enough to qualify for a refinance.

After looking on the web, I find there are a zillion companies for loan modification, like people are jumping on the bandwagon to make a quick buck and take advantage of people in dire circumstances. Has anyone on the list used a reliable company? I would appreciate your feedback.

What I have gotten into the habit of doing is if I see a company listed, I check them out at If someone has reported a bad experience with that company (and I have had my experiences, too) then I  don’t even contact them.
Thanks. Vicki.