Mortgage assistance program: significant decrease in income?
Mortgage assistance question: Significant decrease in income. I had a good job and was paying my mortgage faithfully since it was originated in April 2014. I lost my job in 2016 Feb and filed for chapter 7 bankruptcy because of zero income. I have been using my savings to pay the mortgage ever since. I never knew that right after I lost my job was the best time to apply for mortgage assistance. I paid my mortgage from savings while job hunting until June and got financially exhausted. I finally found a job this Aug/September (school teacher) with an income that makes it impossible for me to pay the amount I usually pay for my mortgage. Besides, I have been behind on the mortgage since July after my savings was exhausted. I have applied for mortgage assistance (Chase bank). They have many options, and I only qualify for a couple due to a bunch of different rules that make it impossible for many people to qualify (date of origination must be before the 2000s, balance must be 1.15 times the value, etc.).
HARP is the federal assistance program to help save your house or your state may also have a program to do so
"They have many options, and I only qualify for a couple due to a bunch of different rules that make it impossible for many people to qualify"
= of course, most people don't qualify. I haven't figured out how come there is mortgage assistance at all. You made a commitment to the bank. Just because your circumstances change, why should you be off the hook for that commitment?
1. They don’t take taxes into consideration, even if I pay taxes (fed, med, ss…)
Yeah, that's the way ALL BANK LOANS work. When you purchased the house to begin with they used your gross income - that was all fine & dandy (you wouldn't have been able to receive the loan amount you did, had you not included the gross amount). Now that it doesn't work in your favor, you want it excluded. GET OVER YOURSELF!
2/3. They don’t take my expenses into consideration, (only mortgage and child support, nothing else) /
Other expenses: feeding, insurance, health insurance, etc. are not considered. (why did you use two bullet points to say the same thing?)
They do take standard expenses into consideration - it's called debt to income. If yours are higher than that, learn to budget better.
You are a teacher. Why don't you educate yourself on basic financial management?
"I want to keep the house until my kids grow up in it". That's great. Figure out how to afford it!! if not, sell it.
Do your Research for any available government assistance programs. Check with your school district for employee housing assistance financing. Consider that you simply may no longer be able to afford the mortgage payments on that property and find one more suitable to your finances. Act while you still have options.