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Do I meet the requirements for a mortgage modification
In many illistrations a homeowner is set up on a forbearance plan before implementing a mortgage modification which allows a servicer to monitor the economic condition of a homeowner during the special forbearance period to be sure the homeowner will be able to make payments to the lender. There are significant documents required that are reviewed by a servicer Hardship Letter: To qualify for a mortgage modification homeowner must have a valid hardship. The hardship must be known and given as many details as possible to support your case. A is extremely biased and pretty much a requirement in the process of getting a mortgage modification. There are a few hardships that are considered voluntary and do not qualify quitting a job or reducing the total hours worked are typically not accepted. The hardships are known and if there is an additional failure to pay the homeowner can not use the same reason for failure to pay otherwise their previous hardships was really not over and in many instances the homeowner is denied a mortgage modification. Financial Statement: This is used to establish the homeowner ability to pay. This is usually the first form looked over by the mortgage company mediator. This form must clearly indicate monthly earnings and operating cost as well as current assets and liabilities. This is what makes and breaks the entire mortgage modification review. This form also shows whether or not the homeowner will be able to make payments if the mortgage is modified. There must be a extra earnings at the end of the mortgage modification or else the plan will be denied. The plan must be affordable. If a homeowner is severely over-leveraged with debt there is little chance that a mortgage modification will cure the delinquency. Monthly operating cost are reviewed to determine what bills are necessary and what are unnecessary. Necessary operating cost are meals, utilities and gas and an example of unnecessary are entertainment operating cost, expensive phone plans and unsecured debt. Household operating cost mortgage payments, utilities, and taxes take up most of the monthly budget. Do not make expenses look unreasonable will be a red flag to get further detail. The negotiators will always look for assets that can be liquidated. Proof of Pay: The proof of earnings is usually a paycheck stub, a P&L Profit and Loss Declaration if self employed, or checking account account showing paycheck deposits. The proof of earnings is required to prove the homeowner has steady earnings. The homeowner must also give frequency of earnings. The proof of earnings must correspond with the earnings shown on the financial account. Resolve any discrepancies
Donald Morris the author of Foreclosure Help. There is more information about loss mitigation at Stop Foreclosure. Also read our blog about Foreclosure Help
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