2012 HAMP Guidelines

HAMP-Home Affordable Modification Plan-has been in effect for over 3 years now, and it has finally shown some improvement in the numbers of homeowners who are actually getting approved for a lower mortgage payment.  This government program is voluntary, but over 93% of all servicers and lenders signed on to participate due to incentive payments offered to them by the Treasury Department.  The program has standard guidelines for all borrowers, and in order to qualify for a loan workout a homeowner must be able to prove that their financial situation fits right into this strict criteria.

HAMP 2012 has been improved, and lenders are now required to ask for less documentation from borrowers-however there are still basic items that every homeowner must provide and be able to prove.

HAMP PROGRAM QUALIFICATIONS

1. Proof of income-salaried borrowers must show 30 days of paychecks, and self employed borrowers must provide a P & L and business bank statements that substantiate the income reported.  Tax returns are not mandatory, but you must sign a  4506T form, which allows the lender to order transcripts from the IRS.
2. RMA Application Form- this three page document must be completed and the information provided by the borrower will be used to determine if the they meet the standard approval guidelines.  You must itemize your monthly budget-including income, expenses and assets.  If you show too much or too little income you
   

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   will not pass-verify your own budget will pass by running it through the Loan Mod Calculator.  This tool is designed specifically to help borrowers complete the HAMP RMA form correctly.

3. Bank statements may be required to prove any additional income, and for self employed borrowers.
4. You no longer have to live in the home, as long as no more than 12 months has passed since you moved out

The HAMP guidelines for 2012 have been loosened up to allow more completed loan modifications, per the Treasury Department’s goal of helping over 2 million borrowers.  The program has been extended another year, until the end of 2013 to allow more homeowners to apply or re-apply if they were turned down initially.

The secret to HAMP approval and passing the guidelines is to prepare the RMA form correctly-the monthly budget information is the most important part of the entire application process.  No matter how deserving, if a homeowner does not submit the acceptable figures for their income, expenses and assets, they will NOT be offered a HAMP loan mod.

Get the real answers you need to complete the HAMP RMA application-use the #1 selling system designed specifically for homeowner use.  The Complete Loan Modification Guide kit and Loan Mod Calculator will automatically compute and display your very own budget requirements for you.  You can see if you PASS or FAIL,

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and then make the necessary adjustments so that you PASS every guideline before you submit your application.  Visit MyLoanModificationCenter.com today and get started now.

P & L Tips

Self employed borrowers who wish to apply for a HAMP loan modification will need to complete their paperwork a bit differently than salaried homeowners.  The program requires that all income be documented in order to be considered, so self employed borrowers will have to supply a few items to be considered.

HAMP Self Employed Borrowers Income Qualifications

1. P & L:  you will need to prepare a Profit and Loss Statement that shows your business gross income, itemizes your business expenses and shows your Business Net Income.  Do NOT mix up your personal expenses with your business expenses, your personal household expenses will be listed separately on the Budget page of the RMA application form.  You can follow a simple P & L TEMPLATE provided in the Loan Mod Kit to follow.
2. You will need to supply 3-6 months of business bank statements.  Your total deposits will equal your business gross income for whatever period you are reporting.  You will not be asked to document your expenses
3. Your business NET income (what is left after you pay the company expenses) is your personal GROSS income for the HAMP loan modification qualification.  That is the figure you will list on the RMA application form.  You can not show too much or too little income in order to qualify.  You may need to adjust your
   

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   business P & L to pass this guideline.

4. Verify that your income will PASS the approval criteria by running it through the Loan Mod Calculator – you will see if you may need to make some adjustments before you submit your application.  Once you have fine tuned your P & L and know that your Gross Income is going to PASS, then submit your RMA application for review.

Self employed borrowers who need a HAMP loan modification must prove that their income, expenses and assets all meet the standard Federal approval guidelines.  Self employed borrowers must prove that their business earns enough money to be able to pass the income requirements-sometimes a slight adjustment to your Profit and Loss Statement may be required to accomplish this.

Get the real help you need-use the #1 selling resource for homeowners, The Complete Loan Modification Guide Kit and Loan Mod

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Calculator.  This system is designed specifically to help homeowners prepare their financial statement, and shows a PASS or FAIL for income, expenses and assets.  You need to know this information ahead of time-so that you can make any adjustments before the bank reviews your application.  Visit MyLoanModificationCenter.com today and get started NOW.

Self Employed

HAMP LOAN MODIFICATION FOR SELF EMPLOYED BORROWERS-INCOME DOCUMENTATION

1. Generally, the bank will ask for 3 to 6 months of business bank statements.  The total of the bank deposits will be used for the Gross Business Income.
2. You will have to provide a Profit and Loss Statement-this can be a simple breakdown of your business income, business expenses and the Business Net.  You can use the handy P & L TEMPLATE provided in the Loan Mod Kit.
3. Any annual business expenses can be prorated and then listed on the P & L.
4. Make sure that  you do not mix up your business expenses with your personal expenses-your personal expenses must be itemized on the HAMP RMA application form.
5. Once you have your P & L completed, the Business NET income, will be used for your own PERSONAL gross income for the HAMP application.

The benefit for self employed HAMP loan mod homeowners is that you can adjust your expenses if needed in order to pass the income requirements.  But, you need to

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know ahead of time just how much income will be required to PASS the guidelines.  You can use a program designed specifically for this purpose – the Loan Mod Calculator will automatically compute and display your own specific income requirements-and show you if you may need more or less GROSS income to qualify.  This gives you the upfront information you need in order to fine tune your P & L and RMA form before you submit it for HAMP review.

Get the real answers and real help you need-use the #1 selling resource for homeowners, The Complete Loan Modification Guide Kit and Loan Mod Calculator.  Find out just how much income, expenses and assets you need to pass the HAMP guidelines.  You can avoid mistakes and get it right the first time.  Visit

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MyLoanModificationCenter.com today and get started NOW.

2012

What’s the latest updates for the government loan modification plan?  The HAMP guidelines for 2012 have not changed a lot, but some new revisions to how lenders implement the program and get reimbursed from the Treasury department are expected to result in more completed loan mods for borrowers.  Almost 1 million homeowners have been helped under HAMP, but this figure falls short of the stated goal of assisting 4 million struggling borrowers.  In fact, with just 1 in 4 applications being approved, something needs to drastically change before the program expires at the end of 2012.

The latest HAMP 2012 updates include:

1. More incentives for Principal Reductions;  one of the major issues facing the housing market is the $750 billion in lost equity-and most experts acknowledge that lenders need to aggressively modify loans to include reducing the principal balance so that homeowner can get closer to being equitable.  Now, HAMP increases the incentive to lenders for offering this loan modification option-63 cents on the dollar will be reimbursed to banks for every dollar forgiven.
2. Fannie and Freddie are also included in the new program guidelines, also as encouragement for banks and servicers to lower the loan balance on underwater borrowers.
3. Homeowner qualifications remain the same as before, with the guidelines mandating that the income, expenses and assets pass the strict underwriting criteria set up under HAMP.  The RMA form is still used for applying, and the financial worksheet must be completed showing an acceptable monthly budget for the
   

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   homeowner.

4. Timeframes have been shortened, the Fed now states that banks must respond to a request for HAMP modification within just 30 days of receiving a complete application package.
5. Single point of contact:  now each file will be assigned to one negotiator, and the borrower will only have to interact with a single person during the review and underwriting process.  Hopefully this will eliminate misinformation, lost paperwork and delays.

The HAMP 2012 guidelines are designed to reach more homeowners and find out if a loan modification is a possibility for their particular situation.  If not, then other options will be offered to help the borrower avoid foreclosure, such as deed in lieu and short sale.

Bottom line, homeowners must prove that they fit perfectly into the approval guidelines in order to be offered a HAMP loan mod.  Often the application paperwork is not completed correctly, and borrowers simply do not understand exactly what they need to report for their income, expenses and assets to qualify for a new lower mortgage payment.  Remember, that if you can provide a properly completed RMA form, you could have your HAMP loan modification approved within just 30 days under the new updates-so take the time to do it right.

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Do you qualify for a HAMP 2012 loan mod?  Find out how to complete your financial worksheet correctly-use the proven system that is the #1 seller for homeowners.  The Complete Loan Modification Guide kit and Loan Mod Calculator will automatically compute and display your very own specific requirements for income, expenses and assets.  Make sure you pass the guidelines-this is information you need to know now!  Visit MyLoanModificationCenter.com today and get started right.

If only there were some way for homeowners to know ahead of time just how to calculate their income so they would be able to report the right amount on their application.  HAMP guidelines state that the Gross Monthly Income be used to determine the borrowers:

1. Debt to income Ratio
2. New Target Payment
3. Waterfall Method of Modification

The official formula that HAMP uses for loan modification qualifying takes into consideration your household gross monthly income, and the goal is to modify your current payment so that it will represent 31% of that income figure.  However, there are standard methods that must be used to change the terms-and so if you don’t report just the right amount of income you will fail the formula.  The Waterfall Method uses rate reduction, loan terms and principal reduction to try to arrive

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at the new modified payment-so it is critical that your income pass the Waterfall.

This official formula is published by the federal Treasury Dept. and it is used on every application, so it makes sense to use this same formula on your own income.  This can be confusing to figure out for most borrowers, but you can use a program that mimics this same formula and that will automatically calculate your own specific income requirements.  The Loan Mod Calculator was specifically designed for homeowner use, and provides you with your own calculations for income, expenses, and assets and shows you PASS or FAIL, allowing you to make any necessary adjustments before you submit your application.

Get the real answers you need-including income requirements-use the #1 selling resource for homeowners, The Complete Loan Modification Guide kit and Loan Mod Calculator.  This powerful program mimics the HAMP guidelines, and instantly computes your own specific budget requirements for you.  Avoid mistakes and frustration, get it right the first time.  Visit MyLoanModificationCenter.com

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today and get started NOW.

2012

The HAMP program qualifications for 2012 have been updated and the Federal Treasury Department has made it even more attractive for lenders to modify struggling borrowers mortgage loans.  The program has been around for 3 years, but the low percentage of completed loan mods have been a real disappointment.  One of the most difficult parts of HAMP has been trying to get the lenders to reduce the principal balance for underwater homeowners.  The Fed has addressed this problem with the 2012 updates.

PRA-Principal Reduction Alternative was introduced last year, but very few homeowners saw any benefit to this feature of HAMP.  Lenders have been hesitant to actually forgive chunks of principal, even when the borrower owes significantly more than their home is currently worth.

The new HAMP program enhancements include:

1. Tripled incentives for principal reductions on qualified HAMP loan modifications
2. 63 cents for every dollar of principal reduced instead of the previous 22 cents per dollar
3. $20 billion set aside for principal reductions on qualified borrowers
4. Fannie Mae and Freddie Mac loans are now included in the PRA program
5. Investor owned properties are now eligible, as long as the home is rented and tenant occupied (not vacant)

So, what do these new HAMP program qualifications mean for the average homeowner?  Because one in four borrowers currently owe more than their home is

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worth, many economists feel that the only way to see a real housing recovery is to convince lenders to reduce mortgage balances and give borrowers the incentive to stay in their home instead of walking away.  The Fed seems to agree, and with the new higher incentives being offered to lenders, the hope is that more and more homeowners will receive a loan mod that includes a reduction in their loan balance.  Twenty billion dollars has been allocated to help underwater borrowers get a lower mortgage balance.

This is not a freebie, however, and borrowers must still meet the standard HAMP program qualifications in order to qualify for a loan modification.  Unfortunately, just being underwater on your mortgage is not enough to qualify, you must also pass the criteria for approval, and this includes showing your bank the acceptable monthly income, monthly household expenses and assets.  Your financial worksheet must prove that your specific situation will fit the loan mod guidelines, and only then will you have a shot at a loan workout with a principal reduction.  Make sure that you prepare the application paperwork correctly, make any necessary adjustments to your budget figures ahead of time, and give yourself the very best shot at loan mod approval.

Get the real answers you need to prepare your HAMP loan modification application correctly-use the # selling resource for homeowners, The Complete Loan Modification Guide kit and Loan Mod Calculator.  This system was designed specifically to help homeowners apply and qualify for a loan mod, and the Calculator will

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automatically compute and display your specific requirements for income, expenses, and assets.  Avoid mistakes and get it done right, visit MyLoanModificationCenter.com today.

HAMP 2012

The government sponsored HAMP Loan Modification plan has been around for over 3 years, but the guidelines have changed a bit since the beginning to allow for easier application for borrowers.  This aggressive loan workout plan is designed to provide qualified borrowers with an affordable mortgage payment so that they can avoid foreclosure and stay in their home.  Although the program got off to a slow start, more and borrowers are qualifying for assistance.

Almost 93% of all mortgage lenders have agreed to participate in the HAMP loan modification program, and if your lender is one of them, then you need to understand just what the requirements are for homeowners.  Most borrowers simply have no idea just how to present their situation to their lender, and they will very often send in information that will not pass the qualifications.

HAMP Program Qualifications 2012 and NEW RULES:

1. You must live in your home, this plan is not for investment, rental or second homes.  Your loan amount must be less than $729,750 and your loan must have been originated before January 1, 2009.  NEW RULE:  if you have moved out of your home, but moved out less than 12 months ago, you still qualify.
2. Your current mortgage expense-this is the total of your mortgage payment, monthly property taxes, homeowners insurance and any HOA dues-must exceed 31% of your reported GROSS household income.  NEW RULE:  non-occupant contributory income is not allowed to be counted-only people who live in the
   

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   home

3. You must be able to prove any income that you report, paycheck stubs, bank statements, canceled checks, award letters, etc.  NEW RULE:  you will be asked to sign a 4506T form instead of actually providing your tax returns
4. You must provide a detailed accounting of your monthly household budget on the HAMP financial worksheet form.  Your income, expenses and assets will be carefully reviewed for acceptability.  Too little income will result in a denial as will too much income.  Your monthly expenses must pass the guidelines for cash flow, both pre-mod and post-mod.  NEW RULE:  You will be given an answer within 30 days of submitting a complete package, and you can only re-apply if turned down by providing the lender with new, updated, revised financial information.

Homeowners who apply for a HAMP loan modification can greatly increase the chances of passing the 2012 qualifications by understanding exactly how to prepare their financial worksheet-this means showing your bank the acceptable amounts for your monthly income, monthly expenses and assets.  Remember the information you provide on this application form will be used to decide if you get help or if you will be turned down-so take the time to learn how to do it right.

Get the real answers you need to complete your HAMP financial worksheet correctly-use the #1 best selling resource for homeowners.  The Complete Loan Modification Guide kit and Loan Mod Calculator were designed specifically to help borrowers qualify for a loan workout.  The Loan Mod Calculator will

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automatically compute and display your own specific budget requirements and show how much income, expenses and assets you need to pass the qualifications.  Visit MyLoanModificationCenter.com.

2012 HAMP Guidelines

There is a strict formula used for HAMP loan modification approval that homeowner’s must pass if they hope to get a lower mortgage payment.  Every bank who participates in the federal plan uses this same formula, so unless you know just how to pass it, your chances of acceptance are slim.

The HAMP formula was designed to find out which homeowners are truly in a financial hardship situation, and to determine if their specific budget and current mortgage can be modified to an affordable new payment.  This HAMP formula also tells the lender if modifying the homeowners loan will be cheaper for them than foreclosing on the property.  Keep in mind that your bank will take the option that saves THEM the most money-it is always about the lender’s bottom line in the loan mod process.

Here are the basics of the HAMP loan modification formula that all banks use:

1. NPV:  this stands for Net Present Value and all banks must perform this analysis that tells them if modifying or foreclosing is cheaper for them.  Your homes current market value plays an important part here-the more underwater you are, the better your chances are.
2. LTV:  what you owe on your mortgage as opposed to what the current market value is.  Again, if you have a lot of equity, you probably won’t pass this guideline.
3. Debt to Income Ratio:  your current mortgage expenses (payment, monthly taxes, monthly insurance and any HOA dues) must be Greater than 31% of your reported Gross Monthly Household Income.  If they are lower than that, you will not pass HAMP.
4. Asset Ratio:  you are only allowed to have 3 times your monthly housing expense in the bank to pass this HAMP guideline.  Retirement
   

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   accounts are exempt from this ratio formula.

5. Waterfall Method:  this is how the bank will determine if your loan can be modified using the standard terms (lower interest rate, longer term, reduce principal).  Your monthly income has a lot to do with whether you pass this important guideline-make sure you report the right amount or you will fail this part.
6. Cash Flow:  after you pay all of your bills each month (including the mortgage and household expenses) do you have money left over? Are you barely making it?  After the loan mod will you be able to make ends meet?  You must adjust your monthly budget correctly so that your bank understands that a loan workout will actually be the answer for you.

The HAMP loan modification formula is strict, but it is just math-once you understand how to fine tune your own budget you will be able to greatly increase your chances of passing all of these important guidelines and also greatly increase your chances of approval.

You can find out ahead of time how to prepare your own budget correctly-use the #1 selling resource designed specifically to help homeowners prepare their HAMP application.  The Complete

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Loan Modification Guide kit and Loan Mod Calculator will automatically compute and display your own specific requirements for income, expenses and assets and help you to fine tune your figures before you submit them for review.  Visit MyLoanModificationCenter.com today.

HAMP

The HAMP program qualifications may seem so difficult to figure out and get approved for a loan mod, homeowners struggling through the process could feel like no one actually succeeds with the program.  The facts support the perception that very few do get a loan workout, but it still remains true that hundreds of thousands of borrowers have been given permanent loan mods under the HAMP plan.

Here are some quick HAMP Facts & Figures:

1. $9.9 billion dollars have been saved by homeowners through the federal loan modification plans
2. $529.75 is the average monthly savings realized by homeowners who received loan mods
3. 83% of eligible homeowners whose trial mod became permanent
4. 25% is California’s share of the federal loan modifications

So why do some borrowers succeed with HAMP while other deserving borrowers do not get any help?  Sometimes it may just be luck, but in order to really have a good shot at approval the homeowner must be able to prepare and submit their application correctly-and this means that they can prove in black and white that they fit right into the very narrow approval criteria required by HAMP.  The guidelines include:

1. Gross Monthly Income-Debt to income ratio
2. Monthly Expenses-Cash flow
3. Assets-Asset ratio
4. Loan To Value-NPV test
5. Waterfall Method-Must pass the standard method of modifying the current loan

Apply Correctly

The problem for most borrowers who apply for HAMP is that they really have no idea how to complete the monthly budget financial worksheet portion of the RMA

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application.  The lenders will not provide this specific information to applicants, and so the majority of loan mods are declined simply because the borrower did not know how to fine tune their own monthly budget in order to meet the HAMP program qualifications.

Get the answers you need to increase your chances of HAMP loan mod approval, use the #1 selling resource for homeowners, The Complete Loan Modification Guide kit and Loan Mod Calculator.  This system was specifically designed to help borrowers learn the requirements for income, expenses and assets to pass the standard guidelines.  The Calculator will instantly compute and display your own specific budget figures.  Visit MyLoanModificationCenter.com today.

HAMP

The federal loan workout program has standard guidelines, every homeowner who wants to get a HAMP loan modification will have to prove that they meet the qualifications.  How do you do this?  It all comes down to preparing and submitting your application paperwork correctly-you must prove to the bank that your situation fits the program criteria.  Although not everyone will qualify, you can increase your chances of approval if you know just what your bank needs to see on your paperwork.

HAMP LOAN MODIFICATION APPROVAL QUALIFICATIONS

1. You must live in the home, loan originated before Jan 1, 2009, and have a loan amount less than $729,750
2. Your current housing ratio must be GREATER than 31%-meaning the total of your mortgage payment, property taxes, insurance and any HOA dues equals more than 31% of your household gross income.
3. Your monthly income must be sufficient to pass the Waterfall method of modification, but cannot be too high or you will fail the debt ratio criteria.
4. The household monthly expenses must demonstrate a financial hardship, but cannot be too high or the post mod cash flow criteria will fail.
5. Your assets must pass the Asset Ratio test
6. The new target payment must be affordable and your mortgage be modified within the parameters of the Waterfall Method.
   

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7. You must pass the NPV test, proving that it is cheaper for the bank to modify you rather than foreclose.

This may seem very confusing, but keep in mind that HAMP requires a very strict underwriting process and each borrower must pass all of these qualifications or they will not be approved.  It’s  not surprising that so many fail-this can be too complicated for most folks to figure out on their own.  Unfortunately, your bank will not tell you exactly how to complete your application, or explain how much income, expenses and assets you should report to actually qualify.

You need to know ahead of time just how to fine tune your own budget figures so that you can qualify for the HAMP loan mod you need and deserve.  You can use a powerful tool designed specifically for homeowner use to help you with the information you need to know.  The Loan Modification Calculator mimics the approval qualifications for HAMP, and will instantly compute and display your own specific budget requirements.  You can then fine tune your income, expenses and assets using the Loan Mod Calculator until you see that you pass all of the criteria.  Visit MyLoanModificationCenter.com today to get started right.