My application was denied because they said I have to make more than 1.5% of my existing loan balance. My loan balance is over $377,000 and I do not make more than $5,665/month. Is this correct? If I made that much I would afford my loan payments…. This is the Obama Making Home Affordable modification program. So frustrating…was trying to avoid foreclosure.
You’ll need to call your lender and VERIFY why your loan mod was denied. If they give you a difficult time, hang up and call again! Sounds odd, but it usually works! Depending on who your lender is, the customer service number you call is re-directed to different parts of the country. The 1.5% doesn’t make any sense so you’ll need to get straight answers from them. Lenders, depending on who the underlying investor is, will typically try to modify your loan down to where your debt-to-income ratio (DTI) is around 31% (divide your principal, interest, taxes and insurance (PITI) by your gross income and this will give you your DTI). Re-submit your loan modification package, if necessary and be persistent! Often times the person answering the phone won’t be updated or even educated on their employers’ loan mod programs.
Unless your lender is giving you the run around or they’re a small servicing company, there’s very little reason why they wouldn’t modify your loan if you have a legitimate financial hardship - which I’m assuming is the case since they accepted your mod application to begin with. If you were trying to do it yourself, consider calling HUD’s free loan modification service at (800) 569-4287 and see if they can help you. Once you submit (or re-submit) your loan mod package, call them to confirm receipt of your documents. Once they have your file and it’s under review, the foreclosure process will be postponed, pending approval or denial of the mod. Follow up frequently and again be persistent!
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When deducting home mortgage loan interest, do not forget to fill out line five on the 1098 form which asks for amount spent on real estate taxes. Understand all the requirements to deducting home mortgage loan interest from personal taxes safely and 
http://easyhomeloanmod.com/ for more information.