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.
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
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.
Get the real answers you need-use the system designed specifically for homeowners. The Complete Loan Modification Guide kit and Loan Mod Calculator will instantly and
automatically compute and display your own specific budget requirements. Avoid mistakes, save time and get it right the first time. Visit MyLoanModificationCenter.com today.