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.

Apply Correctly

Homeowners who apply for a Wells Fargo loan modification must complete a financial worksheet as part of the application. This information is used to determine if you will qualify for a loan mod, so it is extremely important to know ahead of time just what you need to report for your income, expenses and assets.
Wells Fargo Financial Worksheet DON’Ts:
Don’t rush-take your time preparing your budget, your figures must fit perfectly into the guidelines for approval.
Don’t guess-learn ahead of time just how much income you need to report and prove in order to qualify-there is a standard formula the bank uses on EVERY application
Don’t assume-you may think that you have a legitimate hardship, but unless you fit the mathematical formula that uses your income, expense and assets the bank will NOT approve you.

Wells Fargo Financial Worksheet DO’S:

DO find out just how to fine tune your budget figures ahead of time, use the Loan Mod calculator to compute this for you.

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DO make any necessary adjustments to your Wells Fargo loan modification financial worksheet prior to submitting it for review
DO be prepared to document any income that you report.
Getting approved for a Wells Fargo loan mod takes preparation, information and persistence. You can do it with the help of the #1 selling resource for homeowners, The Complete Loan Modification Guide kit and Loan Mod Calculator. Visit MyLoanModificationCenter.com today and get started now.

The Loan Mod Calculator automatically computes and displays your specific budget requirements to qualify for a HAMP loan modification-would you call it cheating to know ahead of time just how to fine tune your budget to meet the approval guidelines? Why shouldn’t homeowners be given the information they need in order to adjust their family’s monthly income and expenses in order to get a loan mod and keep their home?
The sad fact is that most borrowers are denied a loan workout simply because they did not complete their application correctly. This is NOT something you can GUESS at and hope it works! The Loan Mod Calculator was designed specifically to help homeowners know ahead of time just how much income, expenses and assets they need to report on their application in order to pass the standard approval guidelines.

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It’s not cheating to do whatever it takes to save your home-and making some minor adjustments to your budget may be all you need to do to change a loan mod denial into an APPROVED loan modification.

Visit MyLoanModificationCenter.com for more information.

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?

If you are self employed, your Chase loan modification application must include your monthly income, but since you don’t receive a paycheck how do you calculate your personal Gross Income?  This is tricky to figure out, but it is critical to be able to prove to Chase that you earn the acceptable amount of  income each month.

Self employed borrowers who need a Chase loan modification will be asked to provide 3-6 months business bank statements and a Profit and Loss Statement to prove their income.  But how do you know how if your business and personal income will fit into the approval guidelines?

SELF EMPLOYED BORROWER INCOME TIPS

1. Total your business bank deposits for the period of 3-6 months.  This total will be your Business Gross Income.
2. Itemize just your business expenses and deduct from the total deposit.  Be sure to include any prorated annual expenses.  You can
   

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   use a simple P & L Template provided in the Loan Mod Kit to show you how to do this easily.

3. The result will be your NET business income-this figure is now your own PERSONAL GROSS income.
4. Verify that this personal gross income figure will pass the Chase loan modification guidelines by running it through the Loan Mod Calculator.
   
5. Make any necessary adjustments to your P & L so that your final income figure shows a PASS on all categories on the Loan Mod Calculator.

Self employed borrowers may actually have a better shot at loan mod approval because they can adjust their expenses if needed to achieve the acceptable amount of monthly gross income for themselves.  However, unless you know just how much income is required you may not hit the right amount.

Remember that your Business Net Income equals your Personal Gross Income for the purpose of Chase Loan Modification.  Be sure that you work on your P & L before you submit it for review, make any needed adjustments and verify with the Loan Mod Calculator that you pass the income requirement.

Get the real help and real answers you need-use the #1 selling resource for

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homeowners.  The Complete Loan Modification Guide kit and Loan Mod Calculator will automatically compute and display your own specific income, expense and asset requirements.  Find out if you PASS or FAIL-and where to adjust your figures before you submit!  Visit MyLoanModificationCenter.com today and get started now.

When a self employed borrower applies for a HAMP loan modification, they must provide different income documentation than a salaried person would.  Since there are usually no paychecks to submit, the guidelines require that other proof of income be supplied.  This can get tricky, especially for small business owners who need to be able to document their personal earnings.  Here is some helpful information to apply correctly.

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.

When you complete the Wells Fargo RMA loan mod application, how do you know if your monthly income will be acceptable? The formula used by the bank to decide who will qualify is very strict and it includes a calculation that computes your gross monthly income. If you report too much or too little you will not pass the approval guidelines.
You need to know ahead of time if your income will be acceptable, you can use the loan mod calculator program to find out. This system was designed specifically for homeowners to help them complete the RMA form correctly. Visit MyLoanModificationCenter.com today and get the answers you need.

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Work on your Budget

Do you know how much monthly income you need to qualify for a Wells Fargo loan modification?  This is a key element in the approval process-most borrowers do not understand how the bank determines eligibility, and so they get this part wrong.  The goal is to prove to the bank in black and white that your specific financial situation fits right into the underwriting guidelines, but this is easier said than done.  What you need is to know just what Wells Fargo needs to see on your application for your monthly income in order to have the best shot at approval.

There is a simpler way to complete your RMA application form, and be confident that your monthly budget figures will pass.  The Loan Modification Calculator is a system designed specifically for homeowners use, and automatically computes and displays each borrowers specific income, expense and asset requirements.  Here is how it works:

1. Complete the Loan Mod Quick APP Worksheet with your specific budget information, breaking down your employment income, any rental income, monthly
   

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   expenses like groceries, utilities, car payments and your current mortgage information.  The Worksheet has easy to follow, detailed directions to help you.

2. Now, using the Worksheet input the budget figures into the corresponding fields in the Loan Mod Calculator.  The results will populate automatically and show you pass or fail.
3. Make any necessary adjustments to your income, expenses and assets needed to display PASS for all 7 of the approval triggers on the Loan Mod Calculator.  You may need more monthly income, less expenses, etc in order to achieve this.  The trick is to make these adjustments before you send it in for Wells Fargo to review.
4. Now, use all your fine tuned budget figures on your final RMA application form-your monthly budget worksheet needs to prove that your financial situation fits right into the approval guidelines.

Don’t make the mistake of guessing what Wells Fargo needs to see in order to approve your loan modification-remember that there is a mathematical formula that uses your income, expenses and assets-get that part right and you have a very good chance of getting your loan workout approved.

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Need help with your application?  Get the real answers you need-use the #1 system designed specifically to help homeowners succeed.  The Complete Loan Modification Guide kit and Loan Mod Calculator will instantly compute and display your own specific budget requirements for you.  Visit MyLoanModificationCenter.com today for more information.

New Program

There is a new Freddie Mac loan modification plan for struggling homeowners that is slightly different than the government HAMP program.  While this program does not entirely replace the federal plan, it will offer help to some homeowners who might have been turned down previously.

The Freddie Mac loan modification plan is called the Standard Modification, and is effect January 1, 2012.  However, borrowers can be evaluated for eligibility sooner.

Key Features:

1. Helps borrowers who are at least 60 days or more delinquent.  Those not delinquent at the time of application must pass the Imminent Default trigger and must live in the home.
2. The current mortgage principal and interest payment will be reduced by at least 10%.
3. Services can reduce monthly payments by including arrearages, reducing the interest rate, extending the term, and if applicable, granting principal forbearance.
4. There is a trial period where borrowers must successfully pay the new payment before the Freddie Mac loan mod will be made permanent.
5. Owner and non-owner occupied homes are eligible, as well as vacant property as long as it is not condemned.

Borrowers must have previously been determined to not be eligible for HAMP, or have defaulted on their previous loan modification.  Homeowners must document a valid financial hardship situation, and provide the bank with a financial worksheet detailing their income, expenses and assets.  Borrowers must be able to prove that they can afford to pay and maintain the new reduced mortgage payment.

The Freddie Mac standard modification requires that the homeowner complete the Borrower Solicitation Package, which includes the certified financial information and reasons for hardship.  The financial worksheet

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provided by the borrower will be used to determine eligibility, so it is critical to show the acceptable amount of monthly income, monthly expenses and assets.  The helpful loan modification calculator will automatically compute and display the specific figures needed to pass the guidelines.

The major differences between the new Freddie Mac loan modification and HAMP is that the servicer does not have to perform the dreaded NPV test-which is a common cause for loan mod denial.  In fact, homeowners can have up to 20% equity in their home and still qualify.

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Get help to apply and qualify for your loan modification-use the #1 selling resource for homeowners, The Complete Loan Modification Guide kit and loan mod calculator.  This system is designed specifically to help borrowers figure out the required monthly income, expenses and assets to pass the approval guidelines.  Visit MyLoanModificationCenter.com today.

There actually is a right and wrong way to apply for a Wachovia loan modification know just how to follow the rules to apply correctly can make the difference between success and failure.You need to understand that the bank uses an underwriting process that includes a formula based on your financial information-so you must be able to show them the right amount of monthly income, monthly expenses and assets to pass the guidelines.

Here is a Wachovia loan modification checklist that is easy to follow:

1. Work on your application ahead of time-don’t disclose your financial information to the bank until you have had the chance to make any necessary adjustments.

2. Gather your income documentation-pay check stubs, award letters, etc and have them ready for reference along with the 3 most recent bank statements.  Use this information to determine what your actual household Gross monthly income is.  You can also use room mate or boarder income if you need to and can prove that you actually receive it each month.

3. Next, write down all of your monthly household expenses-items like utilities, groceries, car expenses, medical, etc.  It is important to make sure that your expenses so the bank that you are not frivolous, but that you simply cannot make ends meet each month with the current unaffordable mortgage.Make note of your total liquid assets-balances in checking, savings, CD, money market accounts must be disclosed.Now, run all of your figures-income, expenses and assets-through the loan modification calculator to find out if your budget is passing or failing the guidelines for acceptance.  When you input your specific budget, the loan mod calculator will compute and display automatically whether you need to fine tune your figures to pass all the triggers for approval.

4. Once you have made any necessary adjustments, use those figures on your final Wachovia loan modification application and provide

   

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   the bank with proof of your income, a signed 4506t form and a signed Dodd Frank Certification form.

5. Make a copy package for yourself before you send it all in for review, and followup with the bank to make sure they have received everything!

Follow this simple checklist and double check all of your budget figures so that you have the very best shot at approval.  Wachovia will only provide a loan modification to you if you can prove you meet the rules – so taking your time to make certain that your application is done correctly is critical.  Most borrowers simply fail to understand what the bank is looking for and so they are turned down even though they are often very deserving!

Get the real answers you need to complete your Wachovia application-use the #1 selling system for homeowners, The Complete Loan

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Modification Guide kit and Loan Mod Calculator were designed specifically to help borrowers complete there paperwork.  Avoid mistakes-save time and increase your chances of approval.  Visit MyLoanModificationCenter.com today!