Confused about the correct way to complete your RMA loan modification Form? There are certain things that your lender will be carefully reviewing on your application, so you need to sure that you have completed it correctly so that you have the best shot at approval. Here are some tips on the best way to list your monthly household expenses when you prepare the financial worksheet.
- The current mortgage payment-whether it is a fully amortized (principal and interest) or an interest only payment-show whatever the base monthly payment that you are required to pay
- Do you have a second mortgage on the property? If so, list that monthly payment amount.
- Property taxes-even if they are currently impounded as part of the amount you pay each month, take your annual tax bill and divide it by 12, then list that amount as your monthly tax obligation.
- Homeowners insurance, again take the annual premium divided by 12 months, equals your monthly obligation for this.
- Credit card or installment payments-only list the minimum payment due, even if you sometimes pay more. The bank will only budget you for the amount you are required to pay.
- Alimony, child support payments should be listed on your RMA form financial worksheet page.
- Rental Expenses-do you own rental properties? If so then list the mortgage, maintenance, etc expenses.
- HOA Dues for the property you are applying for the loan modification need to be listed as an expense
- Car Payment-only list those that you are responsible for and actually paying
- Misc. expenses such as groceries, utilities, tuition, gasoline, transportation, health insurance, prescriptions can all be listed
The RMA loan modification form when completed correctly shows your lender that you are in a financial hardship situation, meaning that your current payment is not affordable. Your monthly expenses are so high that you are barely making ends meet each month, and if they do not help you then you will be at risk of defaulting on the mortgage. However, just as important is to show them that a loan mod will be a solution for your particular situation. You need to make sure that the total expenses you list prove this-you can verify your current and proposed cash flow by running you figures through the loan modification calculator. This program is designed specifically for homeowner use and it will instantly compute and display your own specific budget requirements.
Most homeowners do not understand how to complete their RMA form and so they get turned down for a loan workout. Remember, it is up to you to prove to your bank in black and white that you are a good candidate for a loan mod. The only way to do is to prepare and submit your monthly budget figures-income, expenses and assets-correctly and so that they pass all of your lender guidelines for acceptance.
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