We received a nice loan mod today with a P&I payment of only $746. For our bartender client that is great news and very affordable! She had even had a loan mod previously but had lost her job and was unable to pay so Wells Fargo filed another foreclosure action after the last one was dismissed. We then delayed the foreclosure and kept re-applying after a denial for a loan mod as her income and expenses fluctuated. We never gave up.
This client had an FHA loan and there are a number of hoops an FHA loan mod has to undergo. The first question our client was what her payment would likely be to determine whether it would be affordable or whether she should simply look elsewhere to live and let this house go. A target payment is determined by three values for an FHA loan:
- 31% of gross income;