Loan Modification Forum - LoanSafe.org - View Single Post - Home Affordable Modification on 40 yr mortgage and navigating Chase

MAXIE19 · 07-06-2009, 01:29 PM

The guidelines do actually state that you cannot have more than three months of cash reserves. See HAMP supplemental Directive 09-01 (April 6, 2009)

"The borrower documents a financial hardship and represents that (s)he does not have sufficient liquid assets to make the monthly mortgage payments by completing a Home Affordable Modification Program Hardship Affidavit and provides the required income documentation. The documentation supporting income may not be more than 90 days old (as of the date the servicer is determining HAMP eligibility).

"Underwriting

Hardship Affidavit.......

Every borrower and co-borrower seeking a modification, whether in default or not, must sign a Hardship Affidavit that attests to and describes one or more of the following types of hardship:

................

5. A lack of sufficient cash reserves to maintain payment on the mortgage and cover basic living expenses at the same time. Cash reserves include assets such as cash, savings, money market funds, marketable stocks or bonds (excluding retirement accounts and assets that serve as emergency fund - generally equal to three times the borrower's monthly debt payments).

07-06-2009, 01:29 PM	#68 (permalink)
MAXIE19 Senior Member Join Date: May 2009 Posts: 265 Nominated 0 Times in 0 Posts TOTW/F/M Award(s): 0	Re: Home Affordable Modification on 40 yr mortgage and navigating Chase The guidelines do actually state that you cannot have more than three months of cash reserves. See HAMP supplemental Directive 09-01 (April 6, 2009) "The borrower documents a financial hardship and represents that (s)he does not have sufficient liquid assets to make the monthly mortgage payments by completing a Home Affordable Modification Program Hardship Affidavit and provides the required income documentation. The documentation supporting income may not be more than 90 days old (as of the date the servicer is determining HAMP eligibility). "Underwriting Hardship Affidavit....... Every borrower and co-borrower seeking a modification, whether in default or not, must sign a Hardship Affidavit that attests to and describes one or more of the following types of hardship: ................ 5. A lack of sufficient cash reserves to maintain payment on the mortgage and cover basic living expenses at the same time. Cash reserves include assets such as cash, savings, money market funds, marketable stocks or bonds (excluding retirement accounts and assets that serve as emergency fund - generally equal to three times the borrower's monthly debt payments).