loan modification negotiation (short sale, foreclose, mortgage)

[gudhumor]

I am in the middle of a loan modification negotiation. I was notified that they are considering me. They are asking for my income and how much I am paying out. Are they looking for a negative income or a positive income but barely enough to make payments for me to qualify?

[dweej]

They are trying to find evidence that if they do not modify your loan, you will have no choice but to foreclose. If there is any way for a person to make their mortgage payment, generally they will, so unless you can prove to them that you will be absolutely incapable of making the payment in addition to your other required life expenses, they have no reason to grant the modification. So if you are making 'barely enough', they'll probably deny your app. Show them that you are absolutely unable to make the payments so they're willing to offer you some alternatives. Good luck.

[streetscenes]

Show them your actual income and expenses. This is essentially a loan application. If you lie it's mortgage fraud, a federal crime.

[EscapeCalifornia]

You're asking for a loan modification, not a short sale approval. So you'll want to show that you can actually afford whatever new payment you're asking for, but not afford the current payment.

[Loss Mitigation Expert]

Lenders are usually asking for a little excess in your income after you take away all expenses and bills to prove that you are able to afford the modified loan.

[JennyKnows]

Make sure they dont think youre too poor, or else they will not give your loan any help since they will think that youre doomed no matter what!