Finishing Making Home Affordable…
After six months, nearly 30 phone calls, and countless hours on the phone…
We were rejected for the Making Home Affordable Program through Bank of America.
Our application was ‘lost’ and we were asked to reapply. We applied with the exact same numbers we used 6 months ago but this time, we were denied. The program requires homeowners to spend 37% or more of their gross income on their mortgage to qualify and does not include the second mortgage in calculating the percentage. The monthly payment for our first mortgage is 36% of our gross income. I was disappointed with how close we were until the Bank of America representative (a supervisor) told me that even if we were at 37%, we would have been turned down anyway. She said that Bank of America isn’t likely to approve homeowners for the Making Home Affordable Program unless they are closer to 40-45%.
I asked her if we could refinance and she immediately said no. Not because we are upside-down on our home, but because refinancing requires homeowners to spend less than 33% of their gross income on BOTH mortgages combined.
I have a feeling there are a lot of homeowners stuck in this percentage window.
I’m disappointed to be stuck with a high interest mortgage, but we’re fortunate to be able to ‘afford’ our payment and we aren’t at risk of losing our home. We’re going to hold on, take responsibility for our poor decisions, and move forward.
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Filed under: Finance, Money Saving Ideas
