In order to qualify for an OCWEN loan modification, the amount of gross monthly income you report on the application form must pass the strict Waterfall guidelines. If you report too much or too little monthly income, then you will FAIL and be denied a loan workout. This is where most homeowners trip up-so it is important to know ahead of time just how much you should report on your financial worksheet page of he application.
- Your monthly income is used to determine your debt ratio, new target payment and Waterfall results. The gross or “before taxes” income is used for this formula-and you must report the acceptable amount of money so that your loan can be modified using the standard formula.
- You can also include rental income, room mate income and non borrower contributions-as long as the live in the subject property. However, not 100% of rental income will be
counted-use the Loan Mod Calculator to show you how to compute your other income correctly.
- Social security, retirement, pension, income must be increased by 25% for the OCWEN gross income requirement. Learn more about this in the Loan Mod Kit.
- Self employed income must be documented with at least 3 months business bank statements and a Profit and Loss Statement. Do NOT mix up business income and expenses with your personal income. EASY FORMULA: business NET income = personal GROSS income. Get an easy to use P & L Template and self employed borrower instructions with the Loan Mod Calculator.
- Be sure to verify that your monthly income passes all the OCWEN loan modification approval guidelines-the Loan Mod Calculator will show you a PASS or FAIL so that you can make the required adjustments to your budget before you submit it for final review and approval.
Get more free tips and information, visit MyLoanModificationCenter.com and read the blog section.