OCWEN Loan Modification – Income Requirements to Qualify

Posted by admin On February - 22 - 2011

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.


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.

Use the Formula!

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.

The #1 resource for homeowners, The Complete Loan Modification Guide Kit and Loan Modification Software

Download immediately!

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.

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