What if I’ve lost my income?

By | June 27, 2015

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).

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