What’s the latest updates for the government loan modification plan?  The  guidelines for 2012 have not changed a lot, but some new revisions to how lenders implement the program and get reimbursed from the Treasury department are expected to result in more completed loan mods for borrowers.  Almost 1 million homeowners have been helped, but this figure falls short of the stated goal of assisting 4 million struggling borrowers.  In fact, with just 1 in 4 applications being approved, something needs to drastically change before the program expires at the end of 2012.

The latest 2012 updates include:

  1. More incentives for Principal Reductions;  one of the major issues facing the housing market is the $750 billion in lost equity-and most experts acknowledge that lenders need to aggressively modify loans to include reducing the principal balance so that homeowner can get closer to being equitable.  Now,  increases the incentive to lenders for offering this loan modification option-63 cents on the dollar will be reimbursed to banks for every dollar forgiven.
  2. Fannie and Freddie are also included in the new program guidelines, also as encouragement for banks and servicers to lower the loan balance on underwater borrowers.
  3. Homeowner qualifications remain the same as before, with the guidelines mandating that the income, expenses and assets pass the strict underwriting criteria set up.  The RMA form is still used for applying, and the financial worksheet must be completed showing an acceptable monthly budget for the

    Budget Requirements Displayed


  4. Timeframes have been shortened, the Fed now states that banks must respond to a request for  modification within just 30 days of receiving a complete application package.
  5. Single point of contact:  now each file will be assigned to one negotiator, and the borrower will only have to interact with a single person during the review and underwriting process.  Hopefully this will eliminate misinformation, lost paperwork and delays.

The  2012 guidelines are designed to reach more homeowners and find out if a loan modification is a possibility for their particular situation.  If not, then other options will be offered to help the borrower avoid foreclosure, such as deed in lieu and short sale.

Bottom line, homeowners must prove that they fit perfectly into the approval guidelines in order to be offered a loan mod.  Often the application paperwork is not completed correctly, and borrowers simply do not understand exactly what they need to report for their income, expenses and assets to qualify for a new lower mortgage payment.  Remember, that if you can provide a properly completed RMA form, you could have your loan modification approved within just 30 days under the new updates-so take the time to do it right.

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Do you qualify for a  2012 loan mod?  Find out how to complete your financial worksheet correctly-use the proven system that is the #1 seller for homeowners.  The Complete Loan Modification Guide kit and Loan Mod Calculator will automatically compute and display your very own specific requirements for income, expenses and assets.  Make sure you pass the guidelines-this is information you need to know now!  Visit MyLoanModificationCenter.com today and get started right.

2 Responses

  1. mike l Said,

    Natio Star Morgage is a joke. I have been faxing and e mailing the same documents for 4 months. They keep losing them, I have faxed my tax returns 6 times and individual scheduals 5 times.it’s the same broken record with my pay stubs and other required information. Today I got a letter (another one) requesting My HOA coupon. This will be the 4th time I have given them this info. I have provided documentation 3 times and included a statement from the mgmt company.They are just trying to burm me out…I myself am an underwriter for conventional loans so I know “they” are full of BS and have not intent on helping me,,,,,,FRUSTRATED!!!!!!!!

    Posted on October 8th, 2012 at 11:44 am

  2. Carol Carter Said,

    I understand your frustration. I finally got it done! Just an idea send it to them certified mail and make them have to sign for it and when you get your stub back in the mail where THEY “lost” it , you can say oh really well and another thing if you contact HAMP.GOV directly that will help alot because then they knw the goverment IS involved! Just take a deep breath and go back at it! Carol

    Posted on January 29th, 2013 at 7:30 am

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