Mortgage modifications are a tricky thing to get done. There is a fine line you walk between financial hardship and being able to make the payments on a modified loan. This is why the banks typically require proof of hardship as well as proof of stable income. Most people are able to provide the information needed to show a financial hardship, and the need to change the payment terms of their mortgage. But it is a different story when it comes to being able to show you have the income to maintain payments, even at a reduced amount. If you are married you get the benefit of providing proof of income for both you and your spouse, if you are both on the note, but if your spouse is unemployed the matter becomes more complex.
Your spouse’s status as unemployed can affect an attempted mortgage modification in a couple of ways. Here are some examples:
• A lack of income goes a long way to showing you are experiencing a financial hardship, and in need of a modification. If there is only one income in a household where there were previously two paychecks coming in every two weeks, it does not take a rocket scientist to know you are experiencing a hardship.
• Being unemployed necessarily means you do not have an income, so when asked to show you are able to make payments, you will be required to prove the one income you do have is sufficient.
Lenders may initially shy away from a request to modify a mortgage where one spouse is no longer working. If this is your situation, you should not take this as a final answer. Many times the figures on paper, like pay stubs, do not tell the full story of a couple’s financial condition. It takes artful negotiation and consistent hard work to get lenders to take notice of intangibles and listen to the needs of their customers. This is where we come in, as we have a great deal of experience working with many of the major lenders. We have been successful in all sorts of cases with varying fact patterns, and can help you too.
For more information about how a mortgage modification can help you, contact us today at www.DsouzaLegalGroup.com. We will go over the facts of your case and let you you’re your next step.