Loan Modification Question about PNC?


My auction date is 1/5/10- been thru the process for 16 months. To no avail of saving home, been fighting a rough fight and basically I am down to the last fight.. Do you deal with PNC in house modifications.. and if you do.. can you tell me if they accept unemployment???

Mortgage Loan Modification Answer:

My sister's loan modification just got approved by PNC in October after 16 months. However, she did not have the same income situation as you since she is presently employed. Her loan was originally with National City, but it was taken over by PNC in the midst of her applying for a loan modification. This change caused a lot of confusion and frustration, and wasted a lot of time. She had to re-apply all over again, and PNC filed foreclosure, but kept on postponing her sale date while her loan modification application was in process. They denied it, and proceeded with a sale date. Her loan modification company was able to stop the foreclosure and she re-applied again. Her loan mod company helped re-work their financials according to the lender's guidelines and finally got approved.

So I posed your question with the loan modification company who helped my sister, and this was their answer:

Yes, they currently do and have worked with PNC in numerous cases in the past.

What they have been experiencing during the last three months, or so, is that lenders
have changed their guidelines with regards to how they treat unemployment income, in particular.

It used to be that banks accepted unemployment income as a good source of income for loan modification purposes, but now some of them have changed their minds and no longer count it as a viable source of steady income.

The reason given was that unemployment income is only temporary and cannot be counted on as part of the borrower's long term income source.

The above change in guidelines is arbitrary and depends from one bank to another. There is no guarantee that banks will not change their guidelines during the course of your loan modification application.

The best you can do at this point, since you, unfortunately, already have a scheduled sale date, is to get help from an experienced and reputable loan modification company who can evaluate your situation and give you some guidance on what to do at this juncture.

Because of your impending foreclosure date, the loan modification company I spoke to is willing to evaluate your application and do a conference call with you and PNC to verify their existing guidelines.

If you want their help, please fill out the short form on this page and the manager I spoke to will contact you directly. This is the same company who helped my sister obtain a loan modification approval from PNC.

Don't give up just yet. You still have a chance!

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Dec 10, 2010
Update to unemployment used to deny modification
by: Dean

Great news. New guidelines have been published, effective December 2 and updated December 9. There is a specific provision for an Unemployment HAMP. Here is a quote from the guidelines:
5.1.5 Unemployment Benefits
Borrowers who receive unemployment benefits and request assistance under HAMP must be
evaluated for and, if eligible, offered an UP forbearance plan before the borrower may be
considered for HAMP. See Chapter III, Home Affordable Unemployment Program.

The new guidelines are 170 pages and I will write a separate blog post on them. Finally the barrow and the Servicer will have to follow the same guidelines and they are in writing and they are very specific. They can be found at:

St Louis

Dec 05, 2010
Additional Comments - Loan Modification Question about PNC?
by: Dean

Grace is correct. Loan modification did accept unemployment as a source of income. If banks are no longer accepting that it is a real shame. What about the guy who is working several part time jobs.

It is critical that you get a professional to help at this late stage of the game. I have worked at least 80 of these mods in my area (St Louis). You can only keep up with the ever changing rules by using a professional that asks the right questions. It is imperative that your financial statements meet the guidelines - ie the various financial ratios.

I would encourage you to go on line and file a formal complaint with your Federal Reserve. These complaints ultimately make there way to Congress and they can see what is really going on here. You can search my name - Dean - to find the article with the links to the agencies to file complaints.

Wishing you success in saving your home.

St Louis

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