If you have children, you are most likely living paycheck to paycheck. Unless you get another income through another source, you are going to need to know if using child support as income for mortgage modification is a wise move. There are many things to consider before taking this step.
The biggest one is, will use this method of earning additional money to help or hurt your situation. Also important is to consider if the benefits you are getting now will help you in the long run.
- 1 Many home owners wonder if using child support as income for mortgage modification is wise
Many home owners wonder if using child support as income for mortgage modification is wise
Some say that if your child is older and responsible enough to work, why would you want to put them in a situation where they could lose their job. They say that it’s not fair to their children. But others say that if you can show that the child is capable of working and you are providing for them, there is no reason not to allow them to use this method of earning extra money for the mortgage.
So what are the facts behind using child support as income for mortgage modification? There are several reasons to use this as a way to modify the loan. First, it puts you in a position to where you have more discretionary income. The child support payments can go down depending on your current situation. Also, if you show that you can make some of the payments without having the income from other sources, this will be looked at favorably by the lender. This can be a good thing when you are trying to get the loan modification that you want.
Now is this something you should do?
The answer is probably yes if you are trying to keep your mortgage payments down. You can use child support as income for mortgage modification if you show the lender that you are being a very responsible parent. This will show them that you don’t have much left over after paying for the kids and that you are being responsible in meeting your obligation to pay the house.
Does using child support as income for mortgage modification work in your favor?
Yes, and no. If you have been seeing your child since they were born and they are now on their third birthday, then you can certainly use child support as income for mortgage modification. If you have never raised your children on your own and now have to raise them because of a job loss or a health emergency, then you may not be able to show that you can provide for your children financially. The lender wants to know that you have taken all measures possible to provide for the children.
You can definitely use the payments against the mortgage
They do not have to be a large amount, but they must be consistent and you must be able to prove that you have made regular payments. There is a certain amount of time that you have to use this method before the lender takes possession of your home, but it is better than losing your house.
Child support as income for mortgage modification is a huge advantage
When you are going through a divorce and fighting for custody of your children, you need all the help you can get to make sure that you don’t lose the house. You can prove that you are able to make the extra payments, which means that you will be more respected by the court and the children will benefit from this.
Even if you are not using child support as income for mortgage modification, you will still have to provide proof of financial hardship. This means that you will have to get an evaluation from a reputable company. This way, they can tell you what you can expect financially, which can help you prepare for the process. They can also tell you if there is anything that you can do to avoid foreclosure and keep your house.
Also see: What is A Partial Release of Mortgage?