Anne P

[Joel Fraser]

:rolleyes: Scenerio - Let me know your best advice on how I should best pursue a loan mod while I have time before my rate adjusts and I get married. I am considering hiring the attorney/loan mod specialist who I think may offer me the best direction. *In 2005, purchased our at 100% financing, $885,000. *In 2006, property appraised for $1.1 million, so refinanced with Chase for combined loan amount of $940,000 reimbursing for home improvements which can be verified but probably irrelevent for loan modification. Terms are: Chase First Loan3 Year Fixed, Fixed Interest only, 5.75% expires in SeptemberChase Second LoanPrincipal and Interest Fixed at 7.5% for 20 years Problem: My problem is my income is down dropped by over 60% from net income of $110,0000 for two years and my income will be closer to only net income of $55,000 for 2008 I am guessing. I am current but that is primarily due to my excellent credit scores still allowing me access to up to $150,000 in credit line and I am paying low interest rates at 3.99% fixed for life of the loan (credit cards also happen to be with Chase). My credit cards are at about $60,000 but I have retirement account for about half that i would be willing to take the penalty to reduce to help get me qualifed for a loan mod. I am also getting married next year but we can plan this only if it helps us. We rather figure out our game plan in the next six months before we make these important decisions. Questions1.) Can you add a second borrower, like my fiance to the note if we disclose tax returns, bank statements, etc for him too? It would be stronger to do this then just add rental income. 2.) My mom is going to move in and she will pay a small amount to for rental income to? If we are getting border income, does it help to begin having this deposited into our bank accounts?3.) Our credit card debt is with Chase too, does it help us negotiate with lender if we have all the debt with Chase?4.) We have relatives to help reduce all our credit card debt to get a better loan, should we propose that? Or even for them to pay down some principal only if they meet us half way. 5.) This home costs us over $5,000 in mortgage payments and $1,000 in taxes and insurance each month and our net income is about $6,000 too so almost every dollar toward mortgage payments with a home worth almost $100,000 less than current value. My mother in law will help contribute whatever rent and move in to help us qualify. She really is dedicating the little money she has to helping. 6.) Is it better to qualify now while i show stronger tax returns for 2007 and 2006 and P & L that will still show a big drop? any advantage? With all the details, let me know your thoughts on how you would be approach this plan while marriage is not taken place but willing to add to note, home is still current but should not be if not for relying on great interest rate credit card also with Chase, and the help of our mother in law willing to rent. We want to plan this carefully and then involve an attorney. We are prepared to leave the home and short sale after we've exhausted all our efforts in doing loan mod. Again, we have time to plany this closer to the re-set next year and closer to when we get married if that helps or not.