So I got my loan mod. paperwork via fed-ex today. They want the 1st trial payment and all the paperwork by Dec. 1st. So here are my questions....
1) What do they base the qualifying of a modification on??? I see people talking about 31%....what does that mean?
2) Is there anything I can enter on the hardship forms that will "help" me to qualify?
3) I see people being denied because of insufficent income....but that's the main reason people need modifications right?
4) What happens if I'm denied after the 3 month trial period.....what happens to my past due payments?
I'm the "sole" money maker,my wife was collecting unemployment,but it ran out,so my income is the only income. Does that mean that I won't qualify because I don't make enough.....I'm confused. Any help would be greatly appreciated. I don't want to fill out these forms until I get more info from people in the same boat! Don't know if it means anything but I am not "upside down" in my home. In fact I think I have a good amount of equity in it.....does that make any difference? Thanks everyone!
Full Version: Just got Loan Mod. paperwork????
QUOTE (cruzer @ Nov 6 2009, 03:56 PM) 
So I got my loan mod. paperwork via fed-ex today. They want the 1st trial payment and all the paperwork by Dec. 1st. So here are my questions....
1) What do they base the qualifying of a modification on??? I see people talking about 31%....what does that mean?
There talking about you debt ratio -- is all your debts put you below being able to make you minimum payments than you *MAY* qualify
2) Is there anything I can enter on the hardship forms that will "help" me to qualify? Not really
3) I see people being denied because of insufficent income....but that's the main reason people need modifications right? Well, possibly. If you have no income what makes the bank think you can pay at all? A lot of times they also don't supply the right docs.
4) What happens if I'm denied after the 3 month trial period.....what happens to my past due payments? You still owe money -- the 3 month trial period is just to see if you can pay and for them to make sure and verify everything.
I'm the "sole" money maker,my wife was collecting unemployment,but it ran out,so my income is the only income. Does that mean that I won't qualify because I don't make enough.....I'm confused. Any help would be greatly appreciated. I don't want to fill out these forms until I get more info from people in the same boat! Don't know if it means anything but I am not "upside down" in my home. In fact I think I have a good amount of equity in it.....does that make any difference? Thanks everyone!
1) What do they base the qualifying of a modification on??? I see people talking about 31%....what does that mean?
There talking about you debt ratio -- is all your debts put you below being able to make you minimum payments than you *MAY* qualify
2) Is there anything I can enter on the hardship forms that will "help" me to qualify? Not really
3) I see people being denied because of insufficent income....but that's the main reason people need modifications right? Well, possibly. If you have no income what makes the bank think you can pay at all? A lot of times they also don't supply the right docs.
4) What happens if I'm denied after the 3 month trial period.....what happens to my past due payments? You still owe money -- the 3 month trial period is just to see if you can pay and for them to make sure and verify everything.
I'm the "sole" money maker,my wife was collecting unemployment,but it ran out,so my income is the only income. Does that mean that I won't qualify because I don't make enough.....I'm confused. Any help would be greatly appreciated. I don't want to fill out these forms until I get more info from people in the same boat! Don't know if it means anything but I am not "upside down" in my home. In fact I think I have a good amount of equity in it.....does that make any difference? Thanks everyone!
Just depends on what your DTI ratio is and your income. It can never hurt to apply. Also if the worse comes to worse you have good equity maybe there's a possible you can sell your home for more than you owe and make a profit. Just try to stay out of forclosing.
QUOTE (cruzer @ Nov 6 2009, 04:56 PM)
So I got my loan mod. paperwork via fed-ex today. They want the 1st trial payment and all the paperwork by Dec. 1st. So here are my questions....
1) What do they base the qualifying of a modification on??? I see people talking about 31%....what does that mean?
2) Is there anything I can enter on the hardship forms that will "help" me to qualify?
3) I see people being denied because of insufficent income....but that's the main reason people need modifications right?
4) What happens if I'm denied after the 3 month trial period.....what happens to my past due payments?
I'm the "sole" money maker,my wife was collecting unemployment,but it ran out,so my income is the only income. Does that mean that I won't qualify because I don't make enough.....I'm confused. Any help would be greatly appreciated. I don't want to fill out these forms until I get more info from people in the same boat! Don't know if it means anything but I am not "upside down" in my home. In fact I think I have a good amount of equity in it.....does that make any difference? Thanks everyone!
1) What do they base the qualifying of a modification on??? I see people talking about 31%....what does that mean?
2) Is there anything I can enter on the hardship forms that will "help" me to qualify?
3) I see people being denied because of insufficent income....but that's the main reason people need modifications right?
4) What happens if I'm denied after the 3 month trial period.....what happens to my past due payments?
I'm the "sole" money maker,my wife was collecting unemployment,but it ran out,so my income is the only income. Does that mean that I won't qualify because I don't make enough.....I'm confused. Any help would be greatly appreciated. I don't want to fill out these forms until I get more info from people in the same boat! Don't know if it means anything but I am not "upside down" in my home. In fact I think I have a good amount of equity in it.....does that make any difference? Thanks everyone!
How in the world did you get your "paperwork"?
Usually you need to be pre-qualified on the phone before you're even considered for a HAMP mod.
The 31% refers to the ratio of your first mortgage payments (PITI plus HOA dues, if any) divided by the gross income of the person(s) on the mortgage.
Hardship means reduced income or increased expenses which make it impossible for you to pay your mortgage.
If you have insufficient income to qualify, you can voluntarily include the income of other household members who are not on the mortgage.
If you're denied after the trial, you will have to make up the difference, and your credit report will show lates.
If you have a "good amount" of equity in your home, you may not pass the NPV test and the servicer does not have to modify your loan under HAMP.
If that happens, you may want to look at HARP, the refinance program or a traditional modification.
.
QUOTE (cb2cb @ Nov 7 2009, 02:33 AM)
QUOTE (cruzer @ Nov 6 2009, 04:56 PM)
So I got my loan mod. paperwork via fed-ex today. They want the 1st trial payment and all the paperwork by Dec. 1st. So here are my questions....
1) What do they base the qualifying of a modification on??? I see people talking about 31%....what does that mean?
2) Is there anything I can enter on the hardship forms that will "help" me to qualify?
3) I see people being denied because of insufficent income....but that's the main reason people need modifications right?
4) What happens if I'm denied after the 3 month trial period.....what happens to my past due payments?
I'm the "sole" money maker,my wife was collecting unemployment,but it ran out,so my income is the only income. Does that mean that I won't qualify because I don't make enough.....I'm confused. Any help would be greatly appreciated. I don't want to fill out these forms until I get more info from people in the same boat! Don't know if it means anything but I am not "upside down" in my home. In fact I think I have a good amount of equity in it.....does that make any difference? Thanks everyone!
1) What do they base the qualifying of a modification on??? I see people talking about 31%....what does that mean?
2) Is there anything I can enter on the hardship forms that will "help" me to qualify?
3) I see people being denied because of insufficent income....but that's the main reason people need modifications right?
4) What happens if I'm denied after the 3 month trial period.....what happens to my past due payments?
I'm the "sole" money maker,my wife was collecting unemployment,but it ran out,so my income is the only income. Does that mean that I won't qualify because I don't make enough.....I'm confused. Any help would be greatly appreciated. I don't want to fill out these forms until I get more info from people in the same boat! Don't know if it means anything but I am not "upside down" in my home. In fact I think I have a good amount of equity in it.....does that make any difference? Thanks everyone!
How in the world did you get your "paperwork"?
Usually you need to be pre-qualified on the phone before you're even considered for a HAMP mod.
The 31% refers to the ratio of your first mortgage payments (PITI plus HOA dues, if any) divided by the gross income of the person(s) on the mortgage.
Hardship means reduced income or increased expenses which make it impossible for you to pay your mortgage.
If you have insufficient income to qualify, you can voluntarily include the income of other household members who are not on the mortgage.
If you're denied after the trial, you will have to make up the difference, and your credit report will show lates.
If you have a "good amount" of equity in your home, you may not pass the NPV test and the servicer does not have to modify your loan under HAMP.
If that happens, you may want to look at HARP, the refinance program or a traditional modification.
.
I believe the borrower is talking about his offer for HAMP TRIAL. He recieves a package in mail signs it and mails a check in for his first payment. Very typically normal.
cruzer
it sounds like you have already been approved for the program!!! That's the good news.
Bad news is, you don't want to mess anything up, so make sure your payment is mailed in early.
Make sure you give plenty of time for the post office to deliver, don't forget about days they don't deliver like holidays and weekends for some businesses that may be closed. The lender may require 24-48 hrs to post the payment to your account.
They probably want the paperwork notarized, so go down to your bank and they will typically do it for free because you bank with them.
If it is possible your check could bounce because of automatic payments/withdrawals and money is tight, get a cashier's check or money order. You don't want a bounced check to happen it will void your agreement, if you need to, let something else bounce not your mortgage payment.
Your other questions I don't think you need to worry about at this point because you've been approved, congratulation!
it sounds like you have already been approved for the program!!! That's the good news.
Bad news is, you don't want to mess anything up, so make sure your payment is mailed in early.
Make sure you give plenty of time for the post office to deliver, don't forget about days they don't deliver like holidays and weekends for some businesses that may be closed. The lender may require 24-48 hrs to post the payment to your account.
They probably want the paperwork notarized, so go down to your bank and they will typically do it for free because you bank with them.
If it is possible your check could bounce because of automatic payments/withdrawals and money is tight, get a cashier's check or money order. You don't want a bounced check to happen it will void your agreement, if you need to, let something else bounce not your mortgage payment.
Your other questions I don't think you need to worry about at this point because you've been approved, congratulation!
The only thing I could add is congrats and be aware that just because you get the TRIAL does NOT guarnatee you will get your loan modified at the end of the 3 months.
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