I understand how losing one’s job might qualify you for a short sale. But I don’t understand how it would qualify you for a mortgage modification. Short Sales are supposed to require hardship – and losing your job is a hardship. But you come out of it with NO HOUSE.
You need income in order to qualify for a loan or loan mod. If she’s lost her job and they can’t afford the mortgage with just her husband’s income how can she keep her house?
My friends who went through the short sale did so after the husband lost his job. (Wife is still employed) They were underwater AND took a huge income hit. But they didn’t try to keep a house they couldn’t afford anymore… they’ve joined the ranks of the renters.
This woman and her family should have pursued a short sale.
I don’t understand how people thing they should be able to keep a house they are not making payments on…
