Sometimes the questions you don’t ask are the ones that really perplex you. Sometimes it’s embarrassing to ask certain questions – sometimes you just do not think of the question at the right time – whatever. That’s why these Q & Q sessions are so helpful. We gather online each week to answer questions about loan modifications…about who qualifies, about how much relief to expect and about getting through it successfully. With so much misinformation out there we cut through the BS and tell you what real people are doing to make it work.

Theresa says, “When my husband and I add our incomes, our home payment is only 25% of that.  Does that mean that we will not be able to qualify?”  Theresa, you are thinking correctly and thinking clearly.  Here’s what I would recommend to you.  First of all, are both of you on the loan?  A lot of times husbands and wives think that they’re both on the loan but check real carefully to make sure when they send the statement, does it come to both names?  That’s the first question.  If only one of you is on the loan, then you can use just a portion of one of your income and then you could qualify.  Secondly, I would ask you to check to be sure absolutely certain that you’re calculating your payment correctly its principal, interest, tax, insurance, homeowners association dues, private mortgage insurance, all that lumped together.

So, make sure you got both of the factors right. 

Next, make sure you’re calculating your income correctly.  I can’t tell you how many people calculate their income wrong because they think I get paid – yes, I get paid twice a month.  Well, then you get the paperwork and you realize they get paid every other week.  That’s different.  And they say, yes, I get paid about, you know, $1,400 every paycheck, so it must be below $1,400.  Well, it turns out they net $1,400 and they have medical and 401k and taxes taken out of their checks.  So, make sure you are calculating correctly as well, Theresa.

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