Debt Ratio Requirements

When you apply for a Wells Fargo loan modification one of the first things the bank will check is something called your debt ratio.  This is a calculation that shows the bank how much of your monthly income is currently being spent on your mortgage expenses.  The federal loan mod plan requires that you pass a certain debt ratio percentage in order to even be considered for a loan workout.  Learn more about how this calculation works and how to compute your own ahead of time.

A Wells Fargo loan modification will be offered to homeowners who can prove that they are facing a legitimate financial hardship situation making their current mortgage payment unaffordable.  There is a standard mathematical formula that the bank uses to determine who fits into the hardship guidelines and you must pass this calculation in order to qualify for a loan mod.  Here is the basic guidelines for this loan mod debt ratio approval formula:

1. Current mortgage expenses must equal greater than 31% of the household gross monthly income.  Gross is the pay before any deductions – household expenses include the mortgage payment, property taxes, homeowners insurance and any HOA dues as applicable.
2. You must be facing a financial hardship due to loss or reduction in income, increased expenses, excessive debt, or lack of cash reserves.  This could be due to medical issues, increased mortgage payment, divorce, etc.
3. Your monthly budget must prove in black and white that your current mortgage payment is unaffordable, but that if you loan is modified you will be able to afford the new lower mortgage payment.
4. Your loan must be able to be modified to reach the new target payment of 31% of your gross income using the standard Waterfall Method of Modification – lower the interest rate, increase the loan term or lower the principal balance.

Work on your budget now

The Wells Fargo loan modification debt ratio requirement must be passed first before your application will be considered.  If your current payment is less than 31% of your gross monthly income, then you may not be approved for a loan mod.  Here is the basic calculation to help you figure out your own ratio:

1. Add up your current mortgage payment (interest only payment, or principle & interest payment, or even neg am payment – whatever you are allowed to pay on your mortgage now), monthly property tax (take annual bill and divide by 12), monthly homeowners insurance (annual bill divided by 12), any HOA dues.  Total all of these together for your total monthly housing expense.
2. Divide the total housing expenses by your household gross monthly income.
3. The result is your debt ratio.

If this calculation sounds too confusing, you can use a loan

Sample Budget-Automatically!

modification software calculator that will do all the figuring for you automatically.  The software will also show you what your new target payment could be, and the new loan terms should your application be approved.  Once you  input your specific income, expenses and bank balances, the results will be populated immediately, showing you if your are passing the guidelines and where you may need to adjust your budget to pass the debt ratio guidelines before submitting your application.

Make sure you prepare your Wells Fargo loan modification application correctly, use the #1 best selling resource for homeowners, The Complete Loan Modification Guide kit and Loan

Download immediately!

Modification Software calculator.  You will receive the handbook with step by step directions, forms, and the calculator will automatically show you a sample monthly budget to help you complete your forms correctly.  Visit MyLoanModificationCenter.com today and get started.

Homeowners who are trying to get a Wells Fargo loan modification may be struggling to pay their mortgage payments and this may mean that the loan becomes delinquent making foreclosure a risk.  Should you make your mortgage payments during the loan modification process?  Understanding how the process works and what guidelines the bank needs to follow will help you to make the best decisions during this stressful time.

There is more than one loan modification program offered by Wells Fargo.  They do participate in President Obama’s plan called HAMP as well as offering their own in house loan workout programs.  Also, depending on who owns your loan you may be eligible for the Fannie Mae Alternative Modification.  Each of these program has it’s own set of guidelines and approval criteria which the borrower must pass in order to qualify.

Save Your Home

The one thing that all of these plans has in common is that during the Wells Fargo loan modification review process, the house is not to be moved to foreclosure sale.  Until the loan mod application has been reviewed and a determination is made on the eligibility of the homeowner, the home is not moved to a sale date.  However, this does not mean that the clock stops ticking on the foreclosure process – so if the loan mod is denied the foreclosure may proceed on it’s original timeline.

This is where not making your mortgage payments during the Wells Fargo loan modification process can be dangerous.  If you are already many months behind when you loan mod is reviewed, then the bank may file a Notice of Default and begin the foreclosure process, speeding up the time frame for progressing to sale should your loan mod be denied.  Laws vary state by state, but generally speaking once a Notice of Default is filed then the clock is ticking and the homeowner needs to be very diligent about how their loan modification is being processed so that any potential foreclosure can be avoided.

If your financial hardship situation is so extreme that you simply cannot

Federal Plan

afford to make mortgage payments during the Wells Fargo loan modification process, then you may not be able to make any type of payment.  However if you can afford to make your payments, then it is always better to avoid the possibility of foreclosure by staying as current as possible.  It is not recommended however that you completely drain your retirement accounts in order to stay current on unaffordable payments – that will just put you at risk in the future.  The HAMP guidelines do not require that you be delinquent on your mortgage in order to be eligible, but you must pass a trigger called Imminent Risk Of Default if you are not late.

Bottom line is that the decision to make your mortgage payments during a Wells Fargo loan modification is up to each homeowner and their financial situation.  The most important thing is to be sure you have the best chance of getting approved for your loan mod – that way you can rest assured that you will be able to afford to stay in your home and the possibility of losing your home is removed.

Download immediately!

You can get help to apply and qualify for a Wells Fargo loan modification with the #1 best selling resource for homeowners, The Complete Loan Modification Guide kit and Loan Modification software program.  You will receive step by step directions, forms and the loan mod software program will automatically calculate a sample monthly budget for you to help you fine tune your figures and give you the best chance for approval.  Visit

Sample Budget-Automatically!

MyLoanModificationCenter.com for more information.

Apply Correctly!

One of the critical parts of the loan mod application is called the Hardship Affidavit.  It is now part of the standard form that you must complete and submit for your lender’s review.  This form is called the Request for Modification and Affidavit, or RMA.  It was designed by the Treasury Department for use with the government subsidized loan workout plan, which is called HAMP.

How do you complete this loan modification Hardship Affidavit correctly?  There are boxes that you can check depending on which one most closely matches your own situation-for example:

1. Household income reduced
2. Expenses have increased
3. Monthly debt payments are excessive
4. Cash reserves-checking & savings-are insufficient

There is also a space to write an explanation of what exactly has transpired and what steps you have taken to try to remedy the situation, but since it is only two lines, most of the time you will be better off to write your letter of explanation on a separate piece of paper.

Know the Guidelines

IMPORTANT TIP:  keep your loan modification Hardship letter to one page in length and be sure to sign it on the bottom.  Your letter should include one of the above categories, and it may include all of them!  Begin the first paragraph stating the “due to financial hardship I would like to apply for a loan modification under HAMP or any other program I may qualify for”.  If you specifically ask for the government plan then the bank is mandated to review your application for eligibility.

Suffering a financial hardship situation will not guarantee that you will qualify for a loan modification.  Although it is one of the main requirements, you must also prove that your monthly income, monthly expenses and bank balances all fit within the standard approval formula used by the banks.  This is a mathematical equation that is used to determine if your loan can be modified using the standard Waterfall Method.  If your do not prove in black and white on your financial statement that your income is sufficient to fit into the formula, then chances are not very good for you to be approved.

Sample Budget-Automatically!

You can get help to complete your loan modification application and increase your chances of approval – the #1 best selling resource for homeowners provides you with step by step directions and also a loan mod software that automatically calculates a sample budget.  The Complete loan Modification Guide kit and Loan Modification software will save you time, frustration and give you the help you need to prepare an accurate financial

Download immediately!

statement.  Visit MyLoanModificationCenter.com for more information so you can get started today.

HELP!

Is the deck stacked against homeowners or can you really beat the loan modification process and get your loan mod approved?  The low number of completed loan modifications suggests that the banks have not been very helpful in providing assistance to struggling borrowers, so don’t count on them to help you out much.  There is only way to beat the bank, and that is to know the rules that are used to determine who is qualified, and then use those very same rules to fine tune your application so that you prove you fit right into the program.

Most homeowners think that their bank decides to approve their loan modification based on their hardship situation, but that is not the case.  Although that is one qualification, the main criteria that you must pass is a standard mathematical equation that uses your monthly gross income, your monthly expenses, current mortgage loan balance and your bank balances.  If the information you provide on your application financial statement proves that you fit into the formula, then you have a good chance of beating the bank.  Basically, you have to show them what they need to see – otherwise no matter how deserving your situation may be, you will not have much of a chance of getting a loan workout.

Software Uses the Formula

How can you use this mathematical formula to beat the loan modification process?  Since this is a standard calculation, it is possible to use it yourself when you are preparing your own loan mod application.  Otherwise, how do you know if your monthly income is sufficient or if your expenses are too high?  How much money in your savings or checking is allowed?  These are all part of the calculation that the bank does, so you need to run your numbers first and fine tune them before you submit to your lender for review.

There is only one way to beat the loan modification process – learn and prepare your application correctly.  You can use a loan modification software program that automatically shows you a sample monthly budget and displays if you are passing the triggers for approval.  This is critical because you will know ahead of time just where to make any needed adjustments.  You may need to get a room mate or second job, or you may need to reduce your monthly expenses – knowing this information is key to submitting your application financial statement with confidence.

Sample Budget-Automatically!

You can beat the loan modification process – thousands of homeowners have been helped already.  Use the #1 selling resource, The Complete Loan Modification Guide kit and Loan Mod software program to help you with a sample budget and step by step directions.  Visit MyLoanModificationCenter.com for more information and get started today!

Download immediately!

Apply Correctly

Make sure that you prepare the Wells Fargo loan modification application correctly in order to have the very best chance for approval.  It is critical to prove on your financial statement monthly budget that you fit right into the standard approval guidelines.  The way to do this is to prove in black and white that your monthly income, monthly expenses and bank balances are acceptable.

Instructions for Wells Fargo Loan Modification Application:

1. Work on your monthly budget ahead of time so that you can make any necessary adjustments to your figures before submitting your application.  Make certain that you have included all of your income and expenses-they will be verified by Wells Fargo.
2. Use the official application form called the RMA – Request for Modification and Affidavit.  Page 2 of this form is where you detail your monthly income, expenses and bank balances.
3. Include a brief description of your financial hardship situation on this form and you can use a separate sheet of paper if you need more room.  The acceptable hardship reasons are loss or reduction in income, increased expenses and lack of reserve funds.
4. Provide proof of your monthly income with paychecks, bank statements, award letters, etc.  Make sure that your monthly income matches the application information.
5. Include the signed 4506T form

Work on your budget now

Keep in mind that only borrowers who can meet the standard approval guidelines will be offered a Wells Fargo loan modification.  There is actually a mathematical equation that the bank uses to determine who qualifies – this calculation uses the gross monthly income, the current loan balance, monthly expenses and current bank balances.  If the income is too low or too high then you may not qualify.  Also, if the bank balances are too high you may be ineligible for help.

In order to have the best chance of approval, you can run your own budget through a loan modification software program that mimics

Sample Budget-Automatically!

the standard formula used by the banks.  All of the figures will be calculated automatically and you will see immediately if your monthly income, expenses and bank balances are acceptable or if you need to adjust your budget in order to fit.  Once you have fine tuned your figures, then use that information on the RMA form for final review by the bank.

Download immediately!

Get help to prepare an accurate and acceptable Wells Fargo loan modification application with the #1 resource for homeowners, The Complete Loan Modification Guide kit and Loan Modification Software program.   Included is an easy to use program that will automatically calculate a sample monthly budget displaying the needed monthly income, monthly expenses and bank balances.  Avoid mistakes, save time and have confidence that you have the best chance of approval.  Visit MyLoanModificationCenter.com for more information and get started today.

Apply Correctly

Need help figuring out the best way to prepare your Indymac loan modification financial statement?  Your monthly budget must be submitted for review, and this includes a detailed accounting of your household monthly income, monthly expenses and bank balances.  This is a very important part of the application process and can make or break your loan mod, so you need to make sure you prepare it correctly.

It can be very helpful to have an sample monthly budget to follow when you work on your Indymac loan modification application.  If you are not sure how much monthly income you need to fit into the standard approval guidelines, it is not a good idea to guess or simply send something in until you know that it will be acceptable.  There is actually a standard mathematical formula used to determine how much income is required to qualify for a loan modification, depending on your current loan amount and other factors, your income may be too low or even too high to qualify.

Know the Guidelines

Another tricky part of the Indymac monthly budget requirements is your bank balances.  If you have too much money in the bank you could be turned down because the bank doesn’t see that you are in a true financial hardship situation.  How much money is too much money?  This is where a sample monthly budget can help you.

Your monthly expenses will also be carefully reviewed during the Indymac loan modification approval process.  If they are too high or too low you could find yourself denied a loan workout.  Preparing your monthly budget ahead of time with the help of a sample budget will help you avoid mistakes and fine tune your figures before the lender has a chance to review it.

How can you get an Indymac sample monthly budget to help you with

Sample Budget-Automatically!

your loan modification application?  You can use the #1 best selling resource for homeowners, The Complete Loan Modification Guide kit.  You will receive the Loan Modification software program in the kit and that will automatically calculate your sample monthly budget for you – displaying immediately if your income, expenses and bank balances are acceptable.  Use this sample budget to adjust your figures, then submit your fine tuned budget to the lender with confidence.  Visit

Download immediately!

MyLoanModificationCenter.com for more information and get started today.

HELP!

Why does the Indymac loan modification process have to be so darn frustrating?  Do they do it on purpose to try to get you to just give up or is there something you can do to streamline your application?  The low percentage rates of completed loan mods speak for themselves, most borrower simply do not know how to “beat the system” and get approved for a loan workout.  Here is some important information that you need to know before you apply for your loan mod.

The Indymac loan modification process is based on the government plan called HAMP.  This is supposed to be a streamlined loan mod, but the bank has not really implemented it the way the Treasury Department expected.  In fact only a fraction of the eligible borrowers who should qualify for this loan workout program have actually gotten any help at all.  Usually, Indymac will first offer one of their own in-house or proprietary plans, not the government plan.

Federal Plan

Why should you specifically ask for a HAMP Indymac loan modification?  Simple, it is the most beneficial for homeowners and the application process is streamlined under the government guidelines.  Also, very importantly the plan states that every borrower who asks for consideration for HAMP be reviewed for eligibility before their loan can be moved to foreclosure.  So just by asking for this plan your foreclosure can be delayed.  However, you really need to understand the standard approval guidelines so that you have a good chance of actually qualifying and getting a new lower mortgage payment.

The Indymac loan modification process is so frustrating for homeowners because they simply do not understand exactly how they should complete their paperwork in order to fit into the guidelines and get approved.  The bank will not explain the approval formula, so it is up to each homeowner to prepare their application correctly – and this means that your monthly income, monthly expenses and cash on hand all prove that your particular situation fits into the criteria for acceptance.

How Much Income??

The only way to streamline your Indymac loan modification application is to submit your forms correctly – do it right the first time and your paperwork will go through the system quickly.   In fact, even if you have already sent in your application or been declined previously, you can reapply with updated and corrected information.  It is critical to make sure that your monthly income, monthly expenses and other important information be submitted properly if you hope to get approved.  This means that you show the right amount of income – not too much and not too little and that your other expenses are in line with the standard guidelines for approval.

Not sure how to qualify for an Indymac loan modification?  Loan Mod Quick

Easy to Use-Avoid Mistakes!

App software takes the confusion out of preparing your application.  This helpful tool takes the guesswork out of qualifying by figuring your debt ratio, target payment and other important calculations for you.  Why take chances with your application?  Simply input your unique financial information into the Loan Mod Quick App and it calculates it all for you!  You can save hours of time and avoid costly mistakes.  The Complete Loan Modification Guide kit is the best selling do-it-yourself system that includes the software, handbook, forms and much more.

Susan Gregory is the author of two resource books for homeowners and real estate professionals, the best selling The Complete Loan Modification Guide Kit & Software and The Stimulus Book-HAMP & HAFA Edition.  She also teaches workshop training classes for the federal programs to help real estate professionals assist homeowners with home retention and exit strategies.

Download immediately!

The Complete Loan Modification Guide kit provides a valuable resource for borrowers that includes a step by step handbook, required forms, and a loan modification software program that mimics the federal approval triggers for loan modification.  An advocate for homeowners, Susan also offers free 30 day email support for all of her clients who purchase her publications.  Thousands of homeowners have been helped using these materials.  Visit http://www.myloanmodficationcenter.com for more information.

Homeowners who apply for a Wells Fargo loan modification may find themselves being turned down and not understand why.  The application process is pretty confusing and frustrating and on top of that, the bank has some tricks and traps that often result in a deserving homeowner being told “no” to their loan workout.  Why would the bank treat customers this way and how can you keep this from happening to you?

One Wells Fargo loan modification trap is when the bank asks you for your financial statement and does not explain to you just how much income and expenses you need in order to qualify.  The government workout plan is called HAMP, and in order to qualify for this particular program your financial statement must prove that you meet the standard guidelines.  Since the bank won’t explain to you what these guidelines are, you are left trying to guess at how much income you need to prove in order to qualify.  Many homeowners are first told they don’t make enough money to meet the HAMP guidelines, then when the same homeowner resubmits their loan modification application showing additional income, they are now told they make too much money to qualify!  That is a trap you do not want to fall into.  You need to know just how much monthly income will qualify you for approval.

Re-Apply Correctly

Another Wells Fargo loan modification trick is that while you are applying for your loan workout, the bank is simultaneously moving your loan through the foreclosure process.  They delay your application, lose your paperwork and make you start all over again.  Meanwhile the clock is ticking on foreclosure, and as you run out of time they tell you that it is too late to get a loan modification.  You need to be informed, armed and ready to fight back and demand that your loan modification application be reviewed quickly so that you can avoid this happening to you.

The only way to get the best shot at a Wells Fargo loan modification is to prepare and submit your application correctly – and this means that your financial statement proves in black and white that you fit right into the approval guidelines.  That way when your file is reviewed the bank can verify that you are a good candidate and a loan mod offer will be presented right away.  When you send in unacceptable information your application will be denied and you have to start all over again, and get into a fighting match with them to convince them to review your situation again.

Easy to Use-Avoid Mistakes!

Not sure how to qualify for a Wells Fargo loan modification?  Loan Mod Quick App software takes the confusion out of preparing your application.  This helpful tool takes the guesswork out of qualifying by figuring your debt ratio, target payment and other important calculations for you.  Why take chances with your application?  Simply input your unique financial information into the Loan Mod Quick App and it calculates it all for you!  You can save hours of time and avoid costly mistakes.  The Complete Loan Modification Guide kit is the best selling do-it-yourself system that includes the software, handbook, forms and much more.

Susan Gregory is the author of two resource books for homeowners and real estate professionals, the best selling The Complete Loan Modification Guide Kit & Software and The Stimulus Book-HAMP & HAFA Edition.  She also teaches workshop training classes for the federal programs to help real estate professionals assist homeowners with home retention and exit strategies.

Download immediately!

The Complete Loan Modification Guide kit provides a valuable resource for borrowers that includes a step by step handbook, required forms, and a loan modification software program that mimics the federal approval triggers for loan modification.  An advocate for homeowners, Susan also offers free 30 day email support for all of her clients who purchase her publications.  Thousands of homeowners have been helped using these materials.  Visit http://www.myloanmodficationcenter.com for more information.

How Much Income??

Before you apply for an Indymac loan modification, make certain that the income your are submitting on your application will be acceptable. How do you know if you make too much or too little income in order to qualify for a loan workout plan?  Well, there is a standard formula that is used and you can actually use this very same formula so that you know your financial information will fit right in and that you have a good chance of success.

Unfortunately, not every homeowner will qualify for an Indymac loan modification.  Even if you are facing a legitimate financial hardship situation, unless you can prove that you meet the standard guidelines for acceptance you will not be offered a loan workout.  So, the first step is to understand just what you need to be showing on your application so that you will have the best chance of getting your loan mod approved.  This may sound confusing, but you can use a loan modification software program that mimics that very same formula so that you know exactly what to show for your income and expenses.

Know the Guidelines

The income requirements for approval on your Indymac loan modification will depend on your current mortgage balance and your other monthly expenses.  Based on that information, you need to have a certain amount of gross monthly income so that your loan can be modified to reach your new lower target payment.  If you do not have enough income, then your loan will not be able to fit the standard methods of modification and you will be turned down.  If you have too much income, then you will not meet the hardship guidelines.  It is critical to know the “magic” number for your income if you hope to fit right into the program guidelines.

Easy to Use-Avoid Mistakes!

Before you submit your Indymac loan modification application, you should run all your figures through the Loan Mod Quick APP software program to find out if you are passing the triggers for approval.  You will see instantly where you may need to make adjustments to your budget in order to qualify.  Then using that information, you can submit your final application knowing that you have a very good chance of getting approved.  The final decision is always with the bank, but one thing is certain- if you don’t fit into the formula you don’t have a very good chance of getting approved.  If you do fit in, the your application has a much better chance of success.

Not sure how to qualify for an Indymac loan modification?  Loan Mod Quick App software takes the confusion out of preparing your application.  This helpful tool takes the guesswork out of qualifying by figuring your debt ratio, target payment and other important calculations for you.  Why take chances with your application?  Simply input your unique financial information into the Loan Mod Quick App and it calculates it all for you!  You can save hours of time and avoid costly mistakes.

Download immediately!

The Complete Loan Modification Guide kit is the best selling do-it-yourself system that includes the software, handbook, forms and much more. Visit myloanmodificationcenter.com and order today-Immediate download!

HELP!

Loan modification complaints have hit the roof as more homeowners struggle to get some kind of help from their mortgage lenders.  Why does it have to be so frustrating, confusing and so difficult to get lenders to help homeowners?  The banks are posting record profits – billions of dollars last year while the average Joe is struggling to make the mortgage and put food on the table.  What’s wrong with this picture?

Homeowners are starting to rebel against the banks abusive tactics and some have even begun class action lawsuits as an attempt to get their lenders attention.  In fact, the major lenders have been under scrutiny by the authorities for not following proper procedures on foreclosures, and this has helped some borrowers stop the sale of their home.  Loan modification complaints are so numerous that obviously it is not just an isolated incidence, but a widespread problem that is ongoing.  What can a homeowner do to get some help with their unaffordable mortgage?

Know the Guidelines

The only way to get your lenders cooperation is to make it easy for them to review your information, and to prove in black and white that you fit right into the loan modification approval formula.  If your application is not complete, or if you do not prepare your financial statement correctly they will turn you down.  They have millions of homeowners asking for help, so unless you take the time to know exactly how to prepare your application, then submit it correctly, in all likelihood your paperwork will just sit there or be turned down outright.

Don’ expect your bank to be of much help to you when you apply for a loan modification.  This is something that each homeowner needs to take responsibility for and take the time to learn exactly what they need to do in order to qualify.  If you don’t know how to prepare your paperwork correctly then chances are you will not do it right, and then you stand a good chance of being denied.  The sad truth is that many qualified and deserving homeowners are turned down simply because they did not know how to complete their application paperwork.  You may not be able to win a fight against your big bank lender, but you can beat them at their own game by knowing the rules – and this means completing your application so that it proves you fit right into the approval guidelines.

Not sure how to qualify for a loan modification?  Loan Mod Quick App software takes the confusion out of preparing your application.  This helpful tool takes the guesswork out of qualifying by figuring your debt ratio, target payment and other important calculations for you.  Why take chances with your application?  Simply input your unique financial information into the

Easy to Use-Avoid Mistakes!

Loan Mod Quick App and it calculates it all for you!  You can save hours of time and avoid costly mistakes.  The Complete Loan Modification Guide kit is the best selling do-it-yourself system that includes the software, handbook, forms and much more.

Susan Gregory is the author of two resource books for homeowners and real estate professionals, the best selling The Complete Loan Modification Guide Kit & Software and The Stimulus Book-HAMP & HAFA Edition.  She also teaches workshop training classes for the federal programs to help real estate professionals assist homeowners with home retention and exit strategies.

Download immediately!

The Complete Loan Modification Guide kit provides a valuable resource for borrowers that includes a step by step handbook, required forms, and a loan modification software program that mimics the federal approval triggers for loan modification.  An advocate for homeowners, Susan also offers free 30 day email support for all of her clients who purchase her publications.  Thousands of homeowners have been helped using these materials.  Visit http://www.myloanmodficationcenter.com for more information.