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
application in order to fit the approval guidelines:
- 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.
- 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.
- Bank Balances – you are allowed to have only a certain amount of funds
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.
- 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
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.