Your One Stop Resource for Saving Money.
Mortgage Modification Balancing Act - The Bills.com Blog
Bills.com Blog > Mortgage Questions > Mortgage Modification Balancing Act
Mortgage Modification Balancing Act
Monday, Aug 24, 2009
Question: My husband has been on workman's comp since 12/08, until 5/09 I still had a job. Back in 03/09 I sent in the mortgage refinance worksheet to my mortgage company. I never let them know that I was unemployed, I still have not heard from them 08/09. All I need is $10,000 to get the mortgage caught up. I am starting a new job this week and hopefully my husband should be released to go back to work in the month. What should I do?
Answer: Unfortunately, this is a difficult situation that you must approach with extreme care. If your lender thinks you will not be able to continue making your mortgage payments, it may decide to reject your loan modification application and proceed with foreclosure.On the other hand, if your lender discovers that you failed to disclose a significant reduction in your income, it could reject your application for misrepresenting your ability to pay.
In my opinion, the most important factor in deciding how you will proceed is how certain you are that you will be going back to work soon. If you are already
working by the time the mortgage company begins processing your application, than there is no reason for them to suspect that you were out of work for several months.
If the lender contacts you before you are able to find work, you should be honest about the fact that you have lost your job, although disclosing the fact may result in rejection of your loan modification. The lender will likely want proof of employment, so it is unlikely that you would be able to avoid the issue anyway.
Although no one wants to lose a home, if you cannot afford the payments, there is little reason to continue trying, because if you don't have the money, you will likely end up in foreclosure at some point in the near
If the lender contacts you before you are able to find work, you should be honest about the fact that you have lost your job, although disclosing the fact may result in rejection of your loan modification. The lender will likely want proof of employment, so it is unlikely that you would be able to avoid the issue anyway.
Although no one wants to lose a home, if you cannot afford the payments, there is little reason to continue trying, because if you don't have the money, you will likely end up in foreclosure at some point in the near
future despite your efforts to keep the home.
Also, misrepresenting your employment status could be considered mortgage fraud, which can be a serious criminal offense. While you probably don’t want to broadcast the fact that you lost your job, but if your lender asks you about your employment status, you need to be honest, even if the consequences are unpleasant.
If you would like to read more about foreclosure and the options available to homeowners who are trying to save their homes, I invite you to visit the Bills.com foreclosure page .
I wish you the best of luck in your efforts to keep your home, and hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com
Also, misrepresenting your employment status could be considered mortgage fraud, which can be a serious criminal offense. While you probably don’t want to broadcast the fact that you lost your job, but if your lender asks you about your employment status, you need to be honest, even if the consequences are unpleasant.
If you would like to read more about foreclosure and the options available to homeowners who are trying to save their homes, I invite you to visit the Bills.com foreclosure page .
I wish you the best of luck in your efforts to keep your home, and hope that the information I have provided helps you Find. Learn. Save.
Best,
Bill
www.bills.com
Also, make sure to get a free financial health check-up with Bills IQ!
Submit questions/comments about this post:
Bill has answered all sorts of questions and has been able to provide those in need of financial guidance with helpful and valuable advice and information on their specific financial area of interest. If you need specific guidance on any of the above mentioned financial areas, feel free to Ask Bill your financial questions and get better informed. Also, make sure to get a free financial health check-up with Bills IQ!
Information provided by Bills.com is for general informational purposes only and is not be
construed as legal, financial, bankruptcy, tax or other professional advice. Should you
require more detailed information or specific professional advice tailored to your situation you
should consult an attorney, financial planner or tax advisor.
While we believe all information provided by Bills.com to be accurate as of the date of its posting, we cannot ensure its accuracy. Use of this site and any information contained on or provided through this site is provided without any representations, warranties or guarantees. Bills.com is not responsible or liable for any decisions or actions anyone may take based on the information provided. Please see Terms of Use.
While we believe all information provided by Bills.com to be accurate as of the date of its posting, we cannot ensure its accuracy. Use of this site and any information contained on or provided through this site is provided without any representations, warranties or guarantees. Bills.com is not responsible or liable for any decisions or actions anyone may take based on the information provided. Please see Terms of Use.
© 2006 - 2009Bills.com LLC. All Rights Reserved.