Replies to This Discussion

Permalink Reply by Tina Porter on May 21, 2012 at 8:53pm

Hello Lehel,

Has anyone responded to your question? I am facing a situation where WF is using this as a guideline. Has anyone had success with other expenses being the problem? Thanks

Permalink Reply by Steven Pawera on Tuesday

It's better than 'only PITI': the PI is only on their (WF) loan(s).

If you have a 2nd and it's not their's, not their problem.

If the homeowner has had to move out already as is not unreasonable as they certainly can't stay there for free, they may had to relocate for work, and not is renting a new place to live, that rental payment isn't part of their housing DTI ratio because 'they chose to move'.

Which now transitions to 'hardship'.  Life events like divorce (which is certainly also 'voluntary') and death constitute a hardship.  A growing family, outgrowing your home, trying to sell first as a straight sale, then a sale with the home owner kicking in cash, and when the gap became too big to cover with their cash, they now have a short sale where they need the bank's permission to get out of their situation.. this isn't a hardship.  According to the bank.

So even though the 'real' housing expenses are now 97% of that part of income the borrower can actually spend (aka NET INCOME), and they are totally negative each month, only covering the mortgage out of savings to preserve their credit (800+), they won't be in 'imminent' default until they screw up their credit by missing a payment.  And with the attention their file has had, I don't think faking the late will work at this point.

The irony: the same investor obviously was ok with approving the short sale as a HAFA file (the 2nd killed that, for an additional $3,000 the home owner would have been only to happy to fund - but can't under HAFA guidelines.

ONE QUESTION:

What is this WF 'submission form' Alex talks about in a May CDPE broadcast?  And the list of local WF SS managers that was to be uploaded to resources?  Searching resources for 'wells' the last document updated in May talks about it - but doesn't have any of these details.  What am I missing?  Or rather, WHERE is it?