Indymac

[LoanModMan]

Do I use the average income from the P&L statment to come up with the monthly income?

YES

They said they would only modify if it's something they could cure.  So if my surplus is too low, they could deny also.

Yes that is correct.

Since I have listed the other 2 properties for sale, would they still include incomes from those properties in their DTI?

If you are currently receiving income - YES.
In this market "for sale" doesn't mean much.

[Priscilla]

In calculation DTI, are expenses such as for the properties included in the debt?

[Priscilla]

Using the net income from the P&L all three rentals, I have a negative income of ~1,400/mo, which would give me a -2,563/mo, which probably is an amount they can't cure with just reducing the interest rate and term on a 501,400 loan, even at 2% for 40 years would be about 1,400/mo, which would be a 1,316 reduction from my current payment of 2,716.  It still would not be enough to make up the 2,563 negative. Am I looking at this right.  See reverse figures attached.

[Priscilla]

If I only used the PITI as the only expenses for all 3 rentals,  I would have a negative -1,043/mo.  See attached. This is something they could cure. 

Would they be looking at how their mod would affect the subject property only to figure the surplus or would they be taking in consideration debt service on all my mortgages?

I know in HEMP, they don't even consider the 2nd mortgage in the DTI.

[LoanModMan]

They will be going off of your INCOME. In your case that includes the income or lack thereof derived from the other properties.

In HAMP they go off of INCOME to get the 31% HTI (Housing To Income), you are correct in that they do not consider a second mortgage payment as part of the HTI.

DTI will be a simple calculation of your income as documented in your paperwork.

They will look at what your DTI is and what it will be AFTER they modify. If they can get to a payment that will cure your negative and it fits the parameters of the program they want to place you in then they will modify.

If your negative is too large to overcome with any of their programs then they will not modify.