Mortgage Forum

SuzieQ

I have a loan with america servicing company. THe balance is $277,378.00. my interest rate recently jumped from 7.25% to 9.75% (mortgage went from 1675 to 2300 per month) because my 2 yr arm was up. THis is an interest only loan.This is not my primary residence. I bought this home as an investment property (hoping to make some quick cash, like most people). It has been rented out to help with the mortgage (but the rent only covers half of the mortgage) this does not include the taxes/insurance that I have to shell out additionally. I am so new at this, that I didn't prepare my self before I called the lender to get a modification. THey put me on the spot and starting asking for expenses/income right away. So I gave them what I could think of. They said I was at a surplus. I had them re enter the info, then they said I was in a deficit. So I did not get approved. THey said I could try again at a later time. What kind of figures are they looking for?? Here is my infoIncome8470 (not gross, this is after taxes)$799 (rental income) Total income9269.00Expenses3604.00 (mortage of my residental home i live in)2253.00 (Mortgage of the house I ham trying to get a mod on)250 pgegroceries: $300$160.00 DSL/TV cable$400.00 for auto gas/maintenence$300.00 baby expenses$50.00 gym Auto Insurance: 133165.99 home insurance320.88 property tax (on home I am asking for Modification)550.00 property tax (oh home I live in) $300.00 other bills/miscTotal: 8,786.87Surplus of: $482.13Question: is this too much of a surplus? Should I Show more expenses? The lender told me I have to either show a little surplus or a little deficit. Not sure what that means. I am so confused. Mona31