HAMP 2012

Do you know what the HAMP program qualifications for income and expenses are?  Will your hardship situation qualify you for a loan workout and a new lower mortgage payment?  The Treasury Department has standard guidelines that ALL lenders follow when considering a borrower for a HAMP loan mod.  Here are some details to know about what is required:

HAMP PROGRAM QUALIFICATIONS:

1. Income:  the borrowers monthly GROSS income will be used to determine eligibility.  Anyone living in the one and contributing to the monthly expenses may also be counted towards qualifying income purposes.  The income cannot be too high or too low-HAMP uses a specific formula to determine if the borrowers financial situation meets the guidelines.  Find out just how much income you need to report-use the Loan Mod Calculator.  This program is specifically designed for homeowners and it mimics the HAMP guidelines showing PASS or FAIL for income.
2. Expenses:  The goal is to show your bank that you cannot make ends meet now and that a HAMP loan modification will be  as solution for you.  You must itemize all your monthly expenses, and show that your current cash flow is barely making it BUT that after the loan workout you will have a good cash flow after paying all your bills.  Double check your expenses and pre-mod and post-mod cash flow with the Loan Mod Calculator.  Then make any necessary
   

   Income Requirements Displayed

   adjustments to your expenses before you submit them for review.

3. Hardship:  HAMP is only for borrowers facing a legitimate financial hardship situation.  The standard acceptable reasons are:  loss or reduction in income, increased expenses, lack of reserves, high monthly obligations.

Take the time to understand exactly what it takes to qualify for a HAMP loan modification-remember that the guidelines are the same for everyone.  Your job is to present your bank with an acceptable monthly budget and hardship explanation so that you prove to them you are the perfect candidate.

Get the real help and real answers you need-use the #1 selling resource for homeowners-The Complete Loan Modification Guide kit and Loan Mod Calculator.  This system will automatically compute and display your very own budget requirements for income, expenses and assets-it

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will show PASS or FAIL and let you know where and how to fine tune your figures correctly.  Visit MyLoanModificationCenter.com and get started today.

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
   

   Income Requirements Displayed

   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.

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

Income Requirements Displayed

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.

Do you know how to calculate your income to qualify for a HAMP loan modification?  This is tricky, but it is also one of the most important parts of the entire approval process.  The Federal Treasury Department mandates an official formula be used on each and every homeowner who applies for a loan workout-but if you don’t understand how this is calculated, chances are you will get it wrong.  In fact, this is the #1 reason for denials!

If only there were some way for homeowners to know ahead of time just how to calculate their income so they would be able to report the right amount on their application.  HAMP guidelines state that the Gross Monthly Income be used to determine the borrowers:

1. Debt to income Ratio
2. New Target Payment
3. Waterfall Method of Modification

The official formula that HAMP uses for loan modification qualifying takes into consideration your household gross monthly income, and the goal is to modify your current payment so that it will represent 31% of that income figure.  However, there are standard methods that must be used to change the terms-and so if you don’t report just the right amount of income you will fail the formula.  The Waterfall Method uses rate reduction, loan terms and principal reduction to try to arrive

Budget Requirements Displayed

at the new modified payment-so it is critical that your income pass the Waterfall.

This official formula is published by the federal Treasury Dept. and it is used on every application, so it makes sense to use this same formula on your own income.  This can be confusing to figure out for most borrowers, but you can use a program that mimics this same formula and that will automatically calculate your own specific income requirements.  The Loan Mod Calculator was specifically designed for homeowner use, and provides you with your own calculations for income, expenses, and assets and shows you PASS or FAIL, allowing you to make any necessary adjustments before you submit your application.

Get the real answers you need-including income requirements-use the #1 selling resource for homeowners, The Complete Loan Modification Guide kit and Loan Mod Calculator.  This powerful program mimics the HAMP guidelines, and instantly computes your own specific budget requirements for you.  Avoid mistakes and frustration, get it right the first time.  Visit MyLoanModificationCenter.com

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today and get started NOW.

HAMP

The HAMP program qualifications may seem so difficult to figure out and get approved for a loan mod, homeowners struggling through the process could feel like no one actually succeeds with the program.  The facts support the perception that very few do get a loan workout, but it still remains true that hundreds of thousands of borrowers have been given permanent loan mods under the HAMP plan.

Here are some quick HAMP Facts & Figures:

1. $9.9 billion dollars have been saved by homeowners through the federal loan modification plans
2. $529.75 is the average monthly savings realized by homeowners who received loan mods
3. 83% of eligible homeowners whose trial mod became permanent
4. 25% is California’s share of the federal loan modifications

So why do some borrowers succeed with HAMP while other deserving borrowers do not get any help?  Sometimes it may just be luck, but in order to really have a good shot at approval the homeowner must be able to prepare and submit their application correctly-and this means that they can prove in black and white that they fit right into the very narrow approval criteria required by HAMP.  The guidelines include:

1. Gross Monthly Income-Debt to income ratio
2. Monthly Expenses-Cash flow
3. Assets-Asset ratio
4. Loan To Value-NPV test
5. Waterfall Method-Must pass the standard method of modifying the current loan

Apply Correctly

The problem for most borrowers who apply for HAMP is that they really have no idea how to complete the monthly budget financial worksheet portion of the RMA

Budget Requirements Displayed

application.  The lenders will not provide this specific information to applicants, and so the majority of loan mods are declined simply because the borrower did not know how to fine tune their own monthly budget in order to meet the HAMP program qualifications.

Get the answers you need to increase your chances of HAMP loan mod approval, use the #1 selling resource for homeowners, The Complete Loan Modification Guide kit and Loan Mod Calculator.  This system was specifically designed to help borrowers learn the requirements for income, expenses and assets to pass the standard guidelines.  The Calculator will instantly compute and display your own specific budget figures.  Visit MyLoanModificationCenter.com today.

HAMP

The federal loan workout program has standard guidelines, every homeowner who wants to get a HAMP loan modification will have to prove that they meet the qualifications.  How do you do this?  It all comes down to preparing and submitting your application paperwork correctly-you must prove to the bank that your situation fits the program criteria.  Although not everyone will qualify, you can increase your chances of approval if you know just what your bank needs to see on your paperwork.

HAMP LOAN MODIFICATION APPROVAL QUALIFICATIONS

1. You must live in the home, loan originated before Jan 1, 2009, and have a loan amount less than $729,750
2. Your current housing ratio must be GREATER than 31%-meaning the total of your mortgage payment, property taxes, insurance and any HOA dues equals more than 31% of your household gross income.
3. Your monthly income must be sufficient to pass the Waterfall method of modification, but cannot be too high or you will fail the debt ratio criteria.
4. The household monthly expenses must demonstrate a financial hardship, but cannot be too high or the post mod cash flow criteria will fail.
5. Your assets must pass the Asset Ratio test
6. The new target payment must be affordable and your mortgage be modified within the parameters of the Waterfall Method.
   

   Budget Requirements Displayed

7. You must pass the NPV test, proving that it is cheaper for the bank to modify you rather than foreclose.

This may seem very confusing, but keep in mind that HAMP requires a very strict underwriting process and each borrower must pass all of these qualifications or they will not be approved.  It’s  not surprising that so many fail-this can be too complicated for most folks to figure out on their own.  Unfortunately, your bank will not tell you exactly how to complete your application, or explain how much income, expenses and assets you should report to actually qualify.

You need to know ahead of time just how to fine tune your own budget figures so that you can qualify for the HAMP loan mod you need and deserve.  You can use a powerful tool designed specifically for homeowner use to help you with the information you need to know.  The Loan Modification Calculator mimics the approval qualifications for HAMP, and will instantly compute and display your own specific budget requirements.  You can then fine tune your income, expenses and assets using the Loan Mod Calculator until you see that you pass all of the criteria.  Visit MyLoanModificationCenter.com today to get started right.

Confused about the HAMP 2011 formula for debt ratio on your loan modification application?  This is one of the most critical aspects of applying and qualify for a loan workout-however most homeowners do not understand the formula that the bank uses.  Here is a brief explanation of what your lender will be looking for on your application paperwork.

HAMP FORMULA 2011 DEBT RATIO EXPLANATION

1. The first approval requirement is that your CURRENT debt ratio be higher than 31%-this means that your total monthly housing expense, your mortgage payment, property taxes, insurance and HOA dues, all together exceed 31% of your gross monthly household income.  The reason for this guidelines is that the new modified target payment will equal that percentage, so if your current payment is already lower than that figure, the loan mod won’t help you.  There is no published maximum percentage for your current debt ratio.

2. There is also a back end debt ratio, this is the total of ALL of your monthly expenses (not just your mortgage) divided by your household gross monthly income.  This shows the bank that you simply cannot make ends meet each month and are in a financial hardship situation that qualifies you for help.  There is no maximum percentage under the HAMP 2011 formula, but you must have enough monthly income to be able to afford the new mortgage payment and have some disposable cash left over each month .

3. Your debt ratio after the loan mod needs to equal 31% for your mortgage payment, property taxes, insurance and any HOA dues.  If the bank cannot use the Waterfall Method to reach this percentage, then you will be turned down.  This usually happens if you do not have enough monthly gross income on your application.

How can you be certain that your current debt ratio is acceptable and that your income passes the Waterfall Method of Modification?  You can use a system designed

Exact Requirements

specifically to help borrowers figure all this out-the loan modification calculator will instantly compute and display your own specific debt ratio, cash flow, and new target payment for you.  You will also see of you need to adjust your budget to pass the requirements.  Be sure to use the loan mod calculator before you submit your paperwork for review so you don’t make any mistakes.

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Find out if your debt ratio passes the HAMP 2011 requirements-use the #1 selling system for homeowners-The Complete Loan Modification Guide kit and loan mod calculator.  This powerful program will instantly show your own specific income, expense and asset requirements so that you can prepare your application correctly.  Visit MyLoanModificationCenter.com today for more information and get started now.

2011 HAMP Guidelines

There is a lot of confusion out there about the debt ratio guideline for HAMP loan modification.  This is one of the major qualifying triggers that you must pass if you hope to get approved, so it is important to understand how the 31% debt ratio works for qualifying purposes.

The federal Treasury Department set up standard guidelines that all banks use when reviewing homeowners for HAMP loan modification eligibility.  One of those guidelines is that you must be facing a financial hardship situation and that your current mortgage payment is unaffordable.  The way that the lenders decide that your payment is too high now is to use this debt ratio formula.

HAMP DEBT RATIO FORMULA-31% CALCULATION EXPLANATION

Debt Ratio Calculation

1. This approval trigger refers to your Current Mortgage Payment-and requires that your total monthly mortgage expenses (payment, taxes, insurance and any HOA dues) be higher than 31% of the household gross monthly income.  If your current mortgage expenses are already less than 31%, then you may not be a good candidate for loan modification.
   
2. As long as your current mortgage expenses exceed 31% of your gross monthly income, then you pass the first trigger for HAMP debt ratio.
3. Now, your mortgage must be able to be modified using the Waterfall Method to arrive at a new monthly mortgage expense that equals 31% of your gross monthly income.  This new payment is called the Target Payment, and that is the figure that HAMP feels is affordable for homeowners.
4. The Waterfall Method uses your gross monthly income, your current mortgage balance and current property taxes, homeowners insurance and any HOA dues to determine what the new terms of your mortgage could be.  The interest rate can be reduced to 2%, the term extended to 40 years and finally the loan balance may be reduced to achieve the new 31% target payment.
5. If your monthly income is too low, then you will not pass the Waterfall Method and you will be turned down because your loan could not be modified to reach the target payment. If your income is too high, you will fail the initial 31% guideline.

Exact Requirements

It is critical to know ahead of time if your monthly income will pass the 31% debt ratio trigger and if your income is enough to pass the Waterfall Method to reach the new lower target payment.  You can find out your specific income requirements by using a system designed specifically for homeowners, the loan modification calculator.  This program will automatically compute and display PASS or FAIL for the debt ratio and Waterfall Method, and show you how much income you need to qualify.

Don’t be confused-get the real answers you need-use the #1 selling system for homeowners-The Complete Loan Modification Guide kit and Loan Mod Calculator.  Designed specifically to help borrowers apply for HAMP, the

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program will instantly give you specific income, expenses and asset requirements and help you avoid mistakes.  Visit MyLoanModificationCenter.com today for more information.

The Waterfall Method of modification is a a standard formula that is used on all HAMP loan mods.  You must pass this calculation if you are going to get approved-so it is important to understand how it works.  The federal government has mandated the use of the Waterfall for all lenders who consider borrowers for a government loan workout-will you pass or fail?

HAMP CALCULATOR DISPLAYS WATERFALL METHOD

The benefit of using the Calculator to figure out your own specific financial

Waterfall Method-PASS?

requirements for passing the Waterfall Method is that you can learn ahead of time just where you may need to make adjustments in order to pass.  The HAMP loan modification Calculator will automatically compute and display:

1. Monthly income requirements
2. Debt Ratio
3. New loan terms, including: interest rate, length of loan term, eligibility for principal reduction

What is the Waterfall Method of Modification?  It is a series of loan term changes that are used in order to obtain the new target mortgage payment.  This new payment will equal 31% of your gross monthly income and is designed to be affordable and sustainable.  A HAMP loan modification will only be offered to those borrowers whose financial situation passes this test.

1. First, lower the interest rate to as low as 2% for a 30 year term
2. If the target payment cannot be reached, then extend the loan term out to 40 years.
3. If still more is needed, then reduce the principal balance to reach the target payment.

The HAMP loan modification calculator will instantly show you if you are a PASS or a FAIL for the Waterfall.  You may need to fine tune your budget figures in order to pass-your monthly income may be too high or too low.  If you don’t know this ahead of time then you may not be able to complete your financial worksheet correctly, and your lender will not approve you.

Perfect!

The HAMP loan mod calculator will instantly compute and display your new loan terms-and show you how to get the very best loan workout you can qualify for!  How do you know what to ask for if you do not know the Waterfall Method?

Get the real answers you need to apply correctly-use the powerful, proven system designed specifically for homeowners.  The Complete Loan Modification Guide kit includes the Loan Modification Calculator and gives you the specific, detailed information you

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need in order to pass the Waterfall Method.  Visit MyLoanModificationCenter.com today for more information and get started now.

If you have been denied a HAMP loan modification and the reason given is Negative NPV Result, there are some important actions you can take to legally fight back.  Most homeowners have no idea what NPV means or how it affects their chances of getting a loan mod.  The government program has set up standard procedures that lenders must follow and standard options available to borrowers who find themselves up against the NPV calculation.

HAMP Loan Modification-Negative NPV Result Information

When a borrower is not approved for a loan workout because the transaction is NPV Negative, the borrower will have 30 calendar days from the date of the Non-Approval Notice to submit written evidence to the servicer that one or more of the NPV input values is inaccurate.  If the borrower wishes to dispute more than one NPV input, the written evidence for each input being disputed must be provided to the servicer at the same time.  If the borrower identifies material inaccuracies in the NPV input values, the servicer may not conduct a foreclosure sale until the inaccuracies are reconciled.

If the evidence submitted by the borrower is valid and material to the NPV outcome, the servicer must perform the NPV calcualation with the corrected input values.

HOW TO DISPUTE NPV

How to Dispute

In the event a borrower disputes the property value input as well as other NPV Data Input Fields and Values, the servicer may elect to validate the other disputed NPV Data Input Fields and Values and perform the NPV re-evaluation changing any other validated inputs while holding the original property value constant.  If this re-evaluation renders a positive NPV result, the servicer may APPROVE the borrower without performing an NPV re-evaluation with a new property value or obtaining a new appraisal.  If this re-evaluation renders a negative NPV result, the servicer must perform the preliminary NPV re-evaluation with the borrower’s estimate of property value.

If a borrower submits written evidence for some but not all of the NPV inputs that the borrower is disputing, the service must notify the borrower promptly that all the necessary written evidence has not been received and that it must be received within 30 calendar days.  This notification need not be in writing but must be documented, the servicer may extend the 30 calendar day dispute period to allow the borrower time to send the missing evidence.

The number one reason for NPV denial on a HAMP loan modification is that the lender has a higher current market value for the property.  You can dispute their valuation by providing an appraisal, CMA or BPO – ask your local Realtor to help you with this.  When trying for a loan mod, the lower your property value, the better your chances are!

Another common reason for NPV denial is due to the borrower not showing enough gross monthly income on their application.  If the income is too low, then the mortgage cannot be modified within the Waterfall

Pass or Fail-Calculated Automatically

Method, and the bank will determine that foreclosure is a better option.  How can you know ahead of time just how much income you need to qualify for HAMP?  You can avoid mistakes and verify your income, expenses and assets will work by using the loan modification calculator.  This powerful tool will instantly compute and display whether your budget is passing or failing, and you can make the necessary adjustments before sending it in for review.

Get the real answers and real help you need to qualify for HAMP loan modification.  Use the #1 best selling resource for homeowners, The Complete Loan Modification Guide kit and Loan Mod Quick APP calculator.

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This easy to use program provides you with the detailed information you need-the loan mod calculator instantly generates your very own monthly budget, showing you income, expense and asset requirements.  Get started today, visit MyLoanModificationCenter.com.