1. In this report, I will start with the term:
Imminent Default, which means that
default can and most possibly will
happen.
2. A borrowers Loan may be current, (not
past due), but they are struggling to make
the mortgage payments on time. They do
not have enough money to buy the food
that they are used to eating, or can go out
to a restaurant.
3. That is when people call in to the banks
and try to get a modification on their
home loan. We state all the short comings
that the current economy has put on our
shoulders.
4. Now in applying for the HAMP, “The
Home Affordable Modification Program”,
the items you will need and the items
they require may take time to get
together.
5. It will entail from several items to as
many as one hundred pages or
documents. All the items sent in as proof
of income or proof of occupancy per the
investor guidelines will have to be verified
or confirmed. Also, a borrowers employer
may be contacted while in review for the
modification. Which we will discuss in the
next chapter.
In this chapter, we’ll discuss the
documents that may be needed to review
for a possible HAMP, home affordable
modification program.
1. First you will need what may be
referred to as “poi”-proof of income. This
will show proof of employment. And can
confirm the duration and frequency of
pay, and the rate and year to date that
you have earned.
2. They will need bank statements to
verify and confirm deposits of rents,
directs deposits for social security,
contributions, or anything else that you
may state you receive.
3. All the items you send in will have to
match the statements you give, and the
documents you send in. If an item does
not match, it may be re-requested or
waived or rejected per the
“underwriters”, and the guidelines.
4. For instance if you are married but
your spouse is not on the contract, but
have signed on the title. They may be
required to send in a contribution letter,
proof of her income. Which may be pay
stubs if salaried or claims to be receiving
wages. If a spouse is self employed, they
may be required to send in a minimum of
a 3 month “profit and loss” statement.
1. As proof of occupancy they may
request a bill, be it an electric bill, phone
bill, or a gas bill.
2. You will need “tax returns’ for the most
recent year. If you do not have the most
recent “tax returns”, you can provide an
extension from your accountant.
3. Thirty days of pay stubs will be
requested, if paid weekly, you may have
to send in (4) weekly pay stubs. If paid
bi-weekly, send in (2) pay stubs, if paid
monthly, send in (2) pay stubs. Usually
within 90 days.
To continue with the request of the “profit
and loss statement”, if the dates and
amounts match it will be accepted. So it is
important that it is correct.
4. If the probable should happen, and you
lose your job, but find a new one within
60 days, you may have to provide a
“VOE”, verification of employment letter.
It would have to include the employers
letter head. The name of the company,
address, contact name, and phone.
5. The VOE will have to include the rate of
pay, frequency of pay, year to date
earnings, and start date. If the letter is
not correct per the investor guidelines it
can be rejected. On the next page we will
discuss the RMA, the request for
modification affidavit.
1. The RMA, Request for Modification
Affidavit, is one of the main aspects of the
program, the first application that was
introduced, consisted of 3 or 4 pages only,
the latest one was as many as 25 pages,
but has been reduced to 22 pages.
2. First you must fill in your personal
information, name , address, phone
numbers, social security numbers.
3. On the financial page you have to
enter the incomes for your rents, social
security, disability benefits, 401k, IRA’s,
dividends, and or contributions that you
may receive, as they will be verified and
confirmed.
4. The expenses column must be filled
in with all expenses, be it personal or
otherwise, also the assets column will
show banking information, checking
account, savings account, and other
assets.
5. Again, all information must be filled in
completely and accurate, and specific, if
not it may be rejected or not used, but
most importantly the modification is not
guaranteed. I hope this information will
help and get a solution to your
4. questions. There are other solutions:
for instance, a short sale, or repayment
plan for up to 6 months, or full
reinstatement. If an issue was temporary
due to lay-off or short term illness.
Your truly and good luck,
Vic
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