We have tried a modification and don't qualify because our house payment is not more than 31% of our income. However they don't take into account that we have an 80/20 loan and that with our second payment it is over 31% of our income. Do we have any options besides a modification to lower our payment and/or interest rate. Our loan isn't Freddie/Fannie as far as I know
There have been some legal actions in relation to onerous loans, high interest rates, and predatory lending, but without more detail as to why your situation provides a cause of action (for suit), then you are left with difficult financial decisions.
You can decide not to pay the loan, or file for bankruptcy, but modification would be best, if poossible. Foreclosure and bankruptcy are serious actions. If you are going that way, you can try a local law firm for help, or the Utah State Bar's Tuesday Night Bar events --
This answer or response should not be considered legal advice, and does not create an attorney-client relationship. If you have further questions, I would be glad to discuss your situation further. I can be reached at US - (801) 746-6300, or online at -- http://www.lewishansen.com/attorneys/robinson.html
Not a legal question. Find a trusted loan broker, and have them walk you through all options.
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Your state may also have some government (and federal) programs available to you.
I am not your attorney. Contact an attorney for advice immediately.