Proof of Income for Modification Program

[Captwalter]

I have just made my fourth tri-period payment. I was told that the trial period will have to start over again as my proof of income is wrong. I will not go into details but you would laugh if I told you what they think is wrong.

My problem is that they are adding 25% to my social security income which I did not know about until yesterday. I did not pay any taxes last year as my income was too low for taxing. Does anyone know why they add on a 25% tax to an applicants social security income? It just doesn't seem right. Many thanks, Perry

[ugh_2009]

captwaler,

There was another thread about this happening to someone but I can't seem to find it. Basically the servicer says that since you don't pay taxes on social security it is treated as "net income" and not "gross income". The guidelines say that if gross income is not available you can use a net income number and add 25% to get a "gross income" number.

I can't tell you if treating social security this way is according to the guidelines intentions or not.

ugh