Unless you mentioned those accounts , they will have no idea you even have them . The application does not ask about those types of accounts and you shouldn’t provide any extra information than the items they specifically ask for
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When SIS posts a deal, the deal is so big it would choke an anaconda 
Good luck to all the CA residents who are able to take advantage.
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Will they look at employment if it is voluntary terminated?
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If you aren’t employed, there’s no employment income to look at . They will look at your prior income but are concerned with your current income to see if your mortgage is greater then 38% of current income , and whether you can make even the modified payment .
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Do they look at 401k contributions? If I maxed out 401k to get under the $130k threshold, all is good, right?
This won’t affect credit also, correct?
What about rental property? If, on paper, rentals are a loss, it should be good, right?
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If your rentals show a loss on tax returns you should be good because they do not add the gross rental receipts to your income . Now Whether a rental loss will get a too high w2 income figure below the limits is something you will need to ask the loan counselor or better yet , Just apply. It’s free to apply and I can’t fathom why anyone would not apply
The new lower principal amount being reported on your credit is generally a good thing
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HI SIS, urgently need your advice. I sent you a PM, can you please check and reply.
Thanks.
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I’ll be speaking with a counselor this afternoon but I believe we qualify.
I know everyone’s case is different, but how much lower?
If we qualify and get this principal reduction, how does this affect my credit? I’m guessing I cannot refi while on this program? We have PMI and I want to get rid of that.
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Yes you can refi yiu just can’t pull cash out with the refi
You’ll be able to drop pmi as the mortgage balance will be lowered with the principal reduction
As you said everyone’s payment will differ . If your current loan balance is $250k with 29 years left and you get the full $100k assistance , your lender recalculate your loan as a $150k loan with 29 years left so the payment will be much lower
your new payment is simply a function of the new lower principal amount and the same term , everything else like the interest rate stays the same
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I contacted my mortgage company to verify what I would have to pay to get rid of PMI. They mentioned an amount but also mentioned that I’d have to pay PMI for 11 years! We have an FHA loan. I was unaware I’d have to be paying PMI for that long. I would like to pull cash out to pay off some CC’s. If we qualify for this, do we still go through with a refi (and not cash out?) What other options can we do?
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I skimmed the FAQ and don’t see anything mentioned specific about the terms of the mortgage… could one refi a 30 year to a 15 year for a higher payment to get closer to being over 38% PITI of income? Or on that matter do a cashout refi to raise the monthly payment… wait and then try.
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SIS, can you tell me how long it typically takes them to fully process an application? Could the whole process be completed in a month, or is that a pipe dream?
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Alpinewhite, I think they say they use gross income, so 401k and IRA contributions won’t help. I’d be interested to know if they meant AGI or MAGI.
Also, what is the 130k limit you mentioned? Is that the moderate income threshold for your county?
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Question 4 is “Is your Orange County household income equal to or less than $124,071?”
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Did anyone here ever figure out if “gross income” means AGI?
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I would say one month is optimistic , assuming you submit all their requested documents and any extra documents they request . Two to three months has been my experience . They review your docs then often request additional documents or letters of explanation for unusual deposits or withdrawal from your bank statements - if you engage in heavy MS with huge monthly deposits and expenses it may be difficult to explain as someone with a financial hardship
Note that when you do get the assistance you would not Need to make a mortgage payment for two months , as they will recast your loan with first payment starting on the 1st approx two months later with the new lower principal amount . That’s a huge relief for those who do have hardship making their mortgage payment - and is especially helpful during the holidays
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Do we have to show statements of the various accounts we use for MS? Mine are all separate from the organic checking account.
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SIS, how long of a financial documents they look for (other than Tax papers…I mean about bank statements and such)? If they look for a year worth, I am screwed but if they look for 60/90 days, I think I qualify for that.
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We spoke with a counselor over the weekend - unfortunately, we were not approved. They have 4 different programs, and the principal reduction was the only one we’d stand a chance at qualifying for (also, this was the plan I was most interested in). Our housing situation is a little complicated, but our debt to income ratio was too high (they looked at our mortgage payment against our gross income).
In case you’re curious about the process: We first opened up a case a few weeks back and provided preliminary info. This past weekend, we called in (all people on the loan note need to be on the phone). We also had one additional person who was on the title on the call. First person we spoke with gave out a basic outline, then were put on hold for about 20 minutes before we talked to the actual counselor. They went around and spoke to all the parties to confirm/obtain basic info, then ran a credit report to gather our mortgage info. We then proceeded to provide our income sources and amounts, plus they asked about the hardship. Interestingly enough, they did not ask about our expenses. After our denial, they have some possible scenarios on how we might qualify - again, we would need to go through another counselor session. FYI - if they can’t bring you down to a 38% debt to income ratio on the mortgage, you might also not qualify. Sounds like you can’t be in a super dire situation either to qualify for the principal reduction program.
BTW - I did provide some stock/RSU figures to the counselor, but they excluded it from their calculations since it was variable and not fixed. I think they’re more concerned about steady income that you would use to contribute to your mortgage payment.
Despite the outcome, I had a great experience with the counselors. I normally cringe at having to call into a place (i.e. customer service, etc), but these folks were clear, patient, and seemed to know what they were doing.
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My piti payment is a tad under 38%. Would they factor in the HOA dues as well? With our rather large hoa dues, our all in payment is above 38%. Thanks in advance.