Posted on: 19th Jan, 2012 01:10 am
I have a mortgage with Bank of America since 2005. I am a self-employed and due to the economic downturn, my income was downed and could not pay my home mortgage since Aug. 2011. I have submitted an application for loan modification but was denied. I have received a letter which also states that they will start off with the foreclosure process. I need to know whether being a self employed makes it difficult to get the loan modification. Also, if I submit the loan modification application again, can the foreclosure be delayed? What else can I do?
There is no such rule which makes it difficult for the self employed to qualify for loan modification. However, it is a fact that you need to show some kind of income to the lender when you apply for loan modification so that he is assured that you will be able to pay off the mortgage after modification. If you submit your request for loan modification again, then you may be able to stop the foreclosure process for the time being.
If you are denied again for the loan modification, there are several other options. You can initiate the HAFA short sale, you can do the deed in lieu or you can send in a qualified written request demanding the bank produces the note, that you are liable for the repayment of the debt. If they cannot produce the note, you can take them to court and for illegal foreclosure, as they are not the valid note holder. Last resort is to file BK, filing BK will get you a couple weeks, unless you complete the BK. BK can ve dismissed, then re opened for a total of 2-3 filings. Once the BK is exhausted and the foreclosure starts oce the home is sold at foreclosure, you can then challenge the UD or eviction, buying yourself another couple weeks, sometimes several more months. Goodluck