5 Important TIPS

Do you know the correct way to prepare your OCWEN loan modification application?  Be careful because the information that you provide on the paperwork will be used to determine if you pass the guidelines for approval or get denied.  Here are 5 simple, but important steps you can take to be sure you prepare it correctly.

OCWEN LOAN MODIFICATION APPLICATION-5 SIMPLE STEPS

Step 1:  Take your time working on your monthly budget figures, the bank will want to see a detailed breakdown of your monthly income, monthly expenses and assets.  This is critical information that the bank uses in their approval formula-do NOT disclose your financial info until you know it is perfect

Step 2:  Verify that your gross monthly household income is not too high or too low-remember that your loan must be able to be modified to an affordable payment using standard methods of modification. OCWEN will review your income to determine a new target payment, and they calculate how much of an interest rate reduction is required to reach the new lower payment.  They may also lengthen the loan term or consider reducing the principal balance to arrive at the modified payment.  If your income is not acceptable, they won’t be able to achieve the required payment.  Double check that your monthly income will work by running it through the loan modification calculator-a program designed for homeowners use.

Step 3:  Now work on your monthly expenses and your asset-these must also pass the OCWEN loan mod guidelines.  The goal is to prove to the bank that the current mortgage payment is not affordable, but that after the loan workout you will be able to pay and maintain the mortgage.  You may need to adjust your expenses to show the right amount of cash flow each month-verify how to adjust the figures with the loan modification calculator-it will instantly display your debt ratio, cash flow and new target payment.

Step 4:  Now that you know the right amount of income, expenses, and assets required, use those figures on your final application form.  You must be able to prove whatever income you write down, so be prepared with check stubs, bank statements, canceled checks, etc.  You will also need to sign a 4506T form, and possibly a Dodd Frank Certification form.  Write a brief explanation of your financial hardship situation, explaining a loss or reduction in your income, increased expenses or lack of

Exact Requirements

financial reserves.

Step5:  Make a complete copy package for your records before you send it all in to OCWEN-be sure to sign everywhere required, and write your loan number on each page.  Be sure to follow up one week later to verify that OCWEN received your loan modification package and ask them if they have everything they need from you.  Call once a week and keep a telephone contact log where you write down everything you do on the file.
Most homeowners simply don’t understand what the bank needs to see from them in order to get a loan mod approval-once you know exactly how to prepare your application then you will have a much better chance at getting the help you need and deserve.  Don’t just guess and don’t expect the bank to help you out-it’s up to you to get it done right.

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automatically compute and display your own specific budget requirements.  Avoid mistakes, save time and get it right the first time.  Visit MyLoanModificationCenter.com today.

Before you send in your OCWEN loan modification paperwork, get up to speed on the latest updates for 2011 and know what the guidelines for approval are.  If you are just guessing at what the bank is looking to see from you then you need to find out exactly how to complete your RMA application correctly-that is the only way to increase your chances of approval.

2011 Updates

OCWEN LOAN MODIFICATION 2011 UPDATES

1. Shorter Time Frame:  The bank will now acknowledge the receipt of your initial package within 10 business days.  They will also notify you of any missing documents within 30 business days-it is imperative to submit a complete package in order to get the fastest response.  Upon receiving a complete initial loan mod package, OCWEN will notify the homeowner within 30 business days if they qualify for a Trial Payment Plan or if they are denied a loan workout and offer a short sale option.
2. Single Point of Contact:  Each file will be assigned on specific negotiator to handle the loan workout application, eliminating the hassle of starting over each time you call in, missing documents and conflicting information.
3. Less Paperwork:  OCWEN now requires less from homeowners-the initial package needs to include:  RMA form, Dodd Frank Certification, 4506t and proof of income (30 days of paystubs or bank statements and P & L for self employed borrowers)
4. The basic guidelines for income, expenses and assets have not been changed and homeowners must prove that their financial situation fits into the program criteria.  You cannot show too much or too

   

   Specific Income Displayed

   little monthly income or you will not pass the Waterfall Method of Modification as the program requires.  The best way to verify that your budget will pass is to run it through the loan modification calculator-this program will compute and display automatically if you are passing or failing.  This will give you the opportunity to fine tune your figures before submission.

The real trick to getting approved for an OCWEN loan modification is to pass all the 2011 guidelines-and most importantly to submit your paperwork so that it proves in black and white you are the perfect candidate.  It’s really about a mathematical formula-the right amount of income, expenses and assets must be shown or the file will be turned down!

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Modification Guide kit includes the powerful loan modification Calculator.  This proven tool automatically computes and displays your specific budget requirements-why guess at what the bank needs to see?  Get it right the first time or re-submit with updated, acceptable information!  Visit MyLoanModificationCenter.com today!

AFfordable Payments

Homeowners who apply for an Ocwen Loan Modification must be able to pass the approval guidelines in order to qualify for a lower mortgage payment.  The rules that borrowers must comply with include fitting into the standard formula for HAMP, which includes proving that the monthly income, monthly expenses and current bank balances all fit into the program.

When trying to get an Ocwen loan modification, it is necessary to complete an application form, called a RMA.  The Request for Modification and Affidavit is 3 pages long, and this form is carefully reviewed by Ocwen to determine if the information provided meets the approval guidelines.  Unfortunately, the vast majority of homeowners really have no idea how to prepare this form correctly and end getting denied simply because the information on their application was not submitted to fit the rules.

Here is what borrowers need to prove on the Ocwen loan modification

Learn How

application in order to fit the approval guidelines:

1. Monthly income-cannot be too high or too low, the gross monthly income is very important as it determines if the loan can be modified to meet the new target payment.  This is the most common error-find out if your income will be acceptable by running your figures through the loan modification software calculator-find out if it passes or fails the approval trigger, then make the necessary adjustments.
2. Monthly expenses-your application must show that you are barely making ends meet or even at a negative after you pay all of your bills each month.  This is called your cash flow or disposable income.  If you cannot prove that you are facing a financial hardship then you will be eligible.  Check your expenses with the loan mod calculator to verify that you are passing this important guideline.
3. Bank Balances – you are allowed to have only a certain amount of funds
   

   Sample Monthly Budget-Follow It

   available, this is called Asset Ratio.  Ocwen will not approve your loan modification if you do not pass this guideline, double check it with the HAMP calculator to make sure you are passing.

4. Waterfall Method of Modification – can your loan be modified using the standard methods to reach the new target mortgage payment?  How do you know what your new mortgage terms will be and if the new payment will even be affordable for you?  The HAMP calculator automatically figures your new target payment and shows you the new loan terms that will achieve that payment.

Although the Ocwen loan modification rules and approval guidelines may seem confusing to homeowners, the easiest way to make sure that the criteria is met on the application forms is to run the monthly budget figures through the loan mod HAMP calculator first, this automatically displays either passing or failing and shows where the budget may need to be adjusted to pass.  Then submit the fine tuned figures on the final Ocwen loan mod application to have the best chance of approval.

Avoid mistakes on your Ocwen loan modification application, use the #1

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resource for homeowners, The Complete Loan Modification Guide kit and HAMP software calculator.  Follow the step by step directions for completing the forms correctly, and double check all your figures with the calculator to be sure your monthly budget is passing the guidelines.  Visit MyLoanModificationCenter.com for more information.

Apply Correctly

Homeowners who are trying to get an OCWEN loan modification will be asked to provide a financial statement that details the monthly income, monthly expenses and current bank balances.  This information is reviewed carefully and the bank will determine if the information provided fits into the approval guidelines.  It is very important to know just how much income you need to prove in order to have the best chance at success.

OCWEN LOAN MODIFICATION INCOME REQUIREMENTS:

The standard formula for loan mod approval uses the gross monthly income, the current mortgage balance, mortgage payment and expenses.  If you show too much income, then the bank may not think you have a true financial hardship situation.  However, the more common problem is not being able to prove enough monthly income to fit into the guidelines.

Know the Formula

Your gross monthly income must be sufficient enough to allow your current mortgage payment to be modified so that it equals 31% of your income.  OCWEN must be able to modify your loan using the Waterfall Method and be able to reach that 31% target payment amount.  The method of modification uses a rate reduction – as low as 2% – then a longer loan term, up to 40 years, and finally some principle reduction may be needed to hit the target.  So, let’s give you an example of how this formula works:

Gross Monthly Income =   $3500 times 31% = $1085 (new target payment)

Current Loan Amount = $250,000

Using this example, the monthly income is not sufficient to modify the loan without giving a big principle reduction.  OCWEN does not always offer this option, and sometimes they will deny the loan modification instead.  The best option under this circumstance would be to try to increase the monthly gross income by perhaps renting a room or getting a second job.

It is very important to know this kind of information ahead of time, before you submit your OCWEN loan modification application for review.  If this sounds too confusing, then you may want to use a loan mod software

Uses Approval Formula!

program designed just for homeowners – it will do all the necessary calculations for you automatically.  Just input your own specific financial information into the software and you will see immediately whether you are passing, and just where you may need to fine tune your budget in order to have the best chance of qualifying.  You can avoid mistakes, save time and have confidence about your application.

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Program will provide you with step-by-step directions, required forms and the easy to use, but very helpful loan mod software.  Visit MyLoanModificationCenter.com for more information and get started today.

Know the Guidelines

Loan modification and the word “easy” should never be used in the same sentence-just ask any homeowner going thru the pain involved in trying to qualify for a loan workout.  However, recent statistics show that Ocwen Financial Corp has actually converted 73% of their trial modifications into permanent loan workouts.

Also, Ocwen Financial recently purchased HomEq and inherited their bad loans as well.  In response, the lender has estimated that over 48,000 more mortgages may be eligible for loan modifications.  The lender participates in the federal plan, HAMP.  This program seeks to help homeowners avoid foreclosure by changing their current loan terms into more affordable payments.  The projected number of loan workouts under this plan has not materialized however, mainly due to homeowners not being able to prove that they meet the standard approval guidelines.

The Ocwen loan modification process can be confusing and frustrating for borrowers seeking a final solution to unaffordable monthly payments.  However, unless the borrower can prove that their financial situation fits right into the standard guidelines for modification, chances are very good that they will be denied help.  How can a homeowner make certain that they have the best chance of approval for a loan mod?

The trickiest part of applying for an Ocwen loan modification is completing the required financial statement.  This is a detailed accounting of the borrowers monthly income and monthly expenses.  This information is the most important part of the process, as it will be used to determine if the homeowner qualifies for a loan workout or not.  Borrowers need to make certain that they income and expenses they disclose to Ocwen are acceptable and fit into the standard formula for modificationl.

Not sure how to qualify for an Ocwen Financial loan modification?  Help is available-the Loan Mod Quick App software takes the confusion out of preparing your application.  This helpful tool takes the guesswork out of qualifying by figuring your debt ratio, target payment and other important

Easy to Use-Avoid Mistakes!

calculations for you.  Why take chances with your application?  Simply input your unique financial information into the Loan Mod Quick App and it calculates it all for you!  You can save hours of time and avoid costly mistakes.  The Complete Loan Modification Guide kit is the best selling do-it-yourself system that includes the software, handbook, forms and much more.

Susan Gregory is the author of two resource books for homeowners and real estate professionals, the best selling The Complete Loan Modification Guide Kit and The Stimulus Book-HAMP & HAFA Edition.  She also teaches workshop training classes for the federal programs to help real estate professionals assist homeowners with home retention and exit strategies.  The Complete Loan Modification Guide kit provides a valuable

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resource for borrowers that includes a step by step handbook, required forms, and a loan modification software program that mimics the federal approval triggers for loan modification.  An advocate for homeowners, Susan also offers free 30 day email support for all of her clients who purchase her publications.  Thousands of homeowners have been helped using these materials.  Visit http://www.myloanmodficationcenter.com for more information.

An OCWEN loan modification could offer the lower payment you need to stay in your home.  The program features some very aggressive terms and is funded by the Treasury Department thru the Federal bailout plan.  This plan is targeted to help millions of struggling borrowers find a solution to avoid foreclosure.  Need to know if you qualify and how to apply?  Here are some FAQ’s to help you get started.

Who qualifies for OCWEN loan modification help?

1. Borrowers must be able to demonstrate an acceptable financial hardship situation.  This may due to loss of job or income, medical issues, divorce or separation, military service, interest rate reset on adjustable loan, etc.  Do you know how to write an acceptable hardship letter?  Make sure it contains the 4 trigger phrases the lender needs to see.
2. Income verification-household income including non-borrowers, room mates and other types of income may be acceptable.  You must be able to prove your income and be able to prove in black and white that you will be able to afford the new modified mortgage payment, now and in the future.  Your lender will ask for a financial statement that details your income and expenses, do you know how to complete this correctly so that it meets the approval criteria?  This is the most critical part of your whole submission-you must be able to fit into the federal guidelines for an OCWEN loan modification.
3. You must live in the home as your primary residence to qualify for the Obama Home Affordable plan.  Your loan must have been originated prior to January 1, 2009 and be less than $729,750.

If you can prove that you fit into the federal loan modification guidelines, then you may be eligible to have your current mortgage payment reduced significantly.  The plan allows for interest rate reductions all the way down to 2%, loan terms to 40 years, and even principal reduction.  A loan workout that gives you an affordable payment could be the answer you need to stay in your home.

If you can answer yes to the above items, you may be a good candidate for anOCWEN loan modification.  The plan is standardized and will offer certain loan modification options to qualified borrowers.  The goal of the plan is achieve a new monthly payment (including taxes, insurance and homeowners dues if applicable) that equals just 31% of the homeowners gross monthly income.  The methods used to arrive at the new payment include:

• Reduce interest rate to as low as 2%
• Extend term to 40 years
• Deferral of some principal balance-no interest or payments are due on this amount, but it will be due and payable when the home is sold or refinanced

How do you apply for a Fannie Mae loan modification? Check your lenders website to make sure they are participating in the program.  You can also call your lender and ask to be considered.  Even if you have applied before or been declined in the past, you are entitled to be considered for this plan.  Make sure you that are prepared ahead of time so that you will be able to complete the application paperwork correctly.  Remember, you must be able to demonstrate that you meet the eligibility requirements.

The Fannie Mae loan modification program uses a standard 4 step formula to determine who qualifies.  You can learn this very same formula and use it to fine tune your own application.  Remember, you must be able to prove on your application that you meet the eligibility criteria.  So take the time now to learn how to improve your chances of getting approved.  This could be the second chance you need, make sure you do it right.

You can get the help you need to apply and qualify for an OCWEN loan modification by ordering the best selling handbook for homeowners, The Complete Loan Modification Guide. This is a low cost, easy to read, home edition loan mod kit that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. You also get 30 days of email support to ask questions, a series of insider tips and a monthly newsletter to keep you up to date on program changes.

Home Edition Loan Modification Kit with Customer Assist

Learn how to qualify for the Obama Federal loan modification plan. Need help completing your loan modification forms?  Find out about our Customer Assist program-you work one-on-one with your very own expert to make sure your application is completed correctly. Get started today on the path to secure home ownership, order The Complete Loan Modification Guide. For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com

Learn how you may be eligible for the governments bailout for struggling homeowners.  There is a lot of confusion and wrong information on just what it takes to qualify for the OCWEN federal home rescue plan.  Before you get frustrated and give up, take a moment to learn the loan modification criteria that you lender will use to determine if you are eligible for the government sponsored loan workout program.

OCWEN is offering the Obama federal home saver plan and is using the standard guidelines that are used for loan modification criteria.  Prior to this, each bank used their own factors to determine who got help-that made it very difficult to even know what you were supposed to be aiming for.  Consequently, very few homeowners were successful with their loan workouts.  Now however, you can learn the standard criteria, and then use that information to fine tune your own application before your lender reviews it.

OCWEN loan modification criteria must be met and proven in black and white before you will be offered a loan workout.  The basic conditions for applying for the Home Affordable Plan are:

1. Live in the home as your primary residence
   

   Federal Plan

2. Your loan was taken out prior to January 1, 2009
3. Loan amount is less than $729,750 (for 1 unit- higher for 2-4 unit properties)
4. Current payment equals more than 31% of your gross monthly income
5. Facing a financial hardship situation due to loss of income, higher expenses or other circumstances beyond your control

Once you pass this initial loan modification criteria, you will be asked to submit some application forms.  These will include:

• Hardship letter/Affidavit
• Financial Statement-details your income and expenses
• Current pay checks or other proof of household income
• Bank statements
• 2 years tax returns-federal only

All of this information will be reviewed and based on the information you provide, a determination will be made if you qualify or not for government assistance.  You do have some control over whether your application has a good chance of success or not.  You should take the time to learn the 4 step formula that your lender will use to determine if you meet the loan modification criteria set forth by Obama.  You can then use this very same formula to make any necessary adjustments to your financial statement before the lender reviews it.  Why take chances when you home is on the line?  Do everything you can to make sure you have the best chance of approval.

You can get the help you need to apply and qualify for a OCWEN loan modification by ordering the best selling handbook for homeowners, The Complete Loan Modification Guide. This is a low cost, easy to read, home edition loan mod kit that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly.

Home Edition Loan Modification Kit with Customer Assist

The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. You also get 30 days of email support to ask questions, a series of insider tips and a monthly newsletter to keep you up to date on program changes. Learn how to qualify for the Obama Federal loan modification plan. Need help completing your loan modification forms?  Find out about our Customer Assist program-you work one-on-one with your very own expert to make sure your application is completed correctly. Get started today on the path to secure home ownership, order The Complete Loan Modification Guide. For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com