Need help with mod

[DST59]

Hi, I would like to get a referral for an attorney in NJ to help me try to get a mod. If anyone knows someone who is trustworthy, please provide your experience. Thanks!

[Moe Bedard]

DST59,


Welcome to the forum and thank you for joining................


We would not be able to give you a direct referal to an attorney on the forum......
the forum is a free do it yourself forum for loan modification.............we assist in the tools and information necessary to communicate with the lenders to help you with the process of a modification..................


for a referal, you would need to look either on the N.J. State Bar Association Lawyer Referal.................or you can try NACA...............

New Jersey State Bar Association

National Association of Consumer Advocates – Consumer Protection Advocates and Attorneys


or you can see if the attorneys that are authorized to be on this site have a referal that is nearby you as well.............
http://www.loanlaw.net/contact.html




you can also find free assistance through HUD and HOPE

Foreclosure Avoidance Counseling - HUD

Homeownership Preservation Foundation

[DST59]

Thank you, I think I need an attorney because I already know that I will be told that my debt ratio is too high. We are self-employed, so the numbers are misleading. I do not want to start this process without professional help. I tried writing my own hardship letter, but do not know if I'm supposed to be leaning towards showing that we cannot afford the mortgage, or towards that we can (so as not to be turned down as poor risks). This is too confusing!

[DST59]

Hi, I am having difficulty writing my hardship letter because I dont know what to say and what NOT to say. Here is my situation:

We own a small business, so there are no w-2's to show. I called and was told to just send hardship letter, bank statements and tax returns.

Our income is based on what we need....meaning we take a "draw" each month to cover our household bills, and that varies, and when the amount is too high, the business then goes without (gets behind in it's bills). We are not behind in the mortgage and have never been, but are struggling to keep up with the household expenses and the business expenses.

The hardship part is easy to explain, I have very specific things that have happened within the business and they are legitimate hardships. Our business is skating on thin ice now, and a reduction in mtge would go a long way to helping us save the business. We have cut out alot, dh got a part-time job, but we do have alot of cc debt (that we pay on time albeit minimum payments).

My question is, do I share this info with mtge company (that we COULD go out of business and end up jobless with NO income....not even unemployment)? On one hand, I want them to know that this is a real possibility so that they would want to help us keep our business (which in turn helps us keep our home), but on the other hand, would telling them that our business is in trouble scare them away from helping us because we would not appear a good risk?

I don't want to start this process of jumping thru hoops only to be turned down, so I want to start out right the first time by being very careful with what I say in the letter.....please help! Do I mention the possibility of going out of business or not? Thanks!

[DST59]

Hi, my mortgage is with Vericrest (formerly CIT). Does anyone have contact info other than loss mitigation for them? I am reading here that you need better contact info, but nowhere in these threads do I see anyone who's mortgage is with Vericrest. Any contact info would be appreciated. Thanks

[DST59]

When you send in your hardship letter and they ask for "bank statements", do you show only checking, or do you also show savings/investments if you have them? Thanks,

[Moe Bedard]

The best way to set up a hardship letter..........

* First, describe the hardship and the circumstances that caused it
* Explain what steps have been taken to correct the situation
* Provide the lender with your plan to get back on track and stay there
* Assure the lender that you are a responsible homeowner who just needs a second chance and that you are very motivated to save your home.

This is what servicers require for income/expense verification............they may ask for additional items on a case by case basis when verifying the information.

If the borrower is employed:

 A signed copy of the most recently filed federal income tax return, including all schedules and forms, if available,
 A signed IRS Form 4506-T (Request for Transcript of Tax Return), and
 Copies of the two most recent paystubs indicating year-to-date earnings.
 For additional income such as bonuses, commissions, fees, housing allowances, tips and overtime, a servicer must obtain a letter from the employer or other reliable third-party documentation indicating that the income will in all probability continue.


If the borrower is self-employed:

 A signed copy of the most recent federal income tax return, including all schedules and forms, if available,
 A signed IRS Form 4506-T (Request for Transcript of Tax Return), and
 The most recent quarterly or year-to-date profit and loss statement for each self-employed borrower.
 Other reliable third-party documentation the borrower voluntarily provides.
Note: For both a salaried or a self-employed borrower, if the borrower does not provide a signed copy of the most recently filed federal income tax return, or if the Compliance Agent so requires, the servicer must submit the Form 4506-T to the IRS to request a transcript of the return.

If the borrower elects to use alimony or child support income to qualify, acceptable documentation includes:
 Photocopies of the divorce decree, separation agreement, or other type of legal written agreement or court decree that provides for the payment of alimony or child support and states the amount of the award and the period of time over which it will be received. Servicers must determine that the income will continue for at least three years.
 Documents supplying reasonably reliable evidence of full, regular and timely payments, such as deposit slips, bank statements or signed federal income tax returns.

If the borrower has other income such as social security, disability or death benefits, or a pension:
 Acceptable documentation includes letters, exhibits, a disability policy or benefits statement from the provider that states the amount, frequency, and duration of the benefit. The servicer must determine that the income will continue for at least three years.
 The servicer must obtain copies of signed federal income tax returns, IRS W-2 forms, or copies of the two most recent bank statements.







If you are going to hire someone to help you with the modification.........they will be able to answer the questions that you have regarding your financials and help you with putting together the modification package for your lender.

[MAXIE19]

DST59:

What banking statements you send will depend on your individual situation and what is available to you. In our case, I am the only one on the loan, however, my husband is on title and contributes to the mortgage. We are both self employed but receive 1099s and have verifiable incomes with regular deposits in our business checking accounts. I sent them my individual business checking account statements and my husband's individual business checking account statements. The business statements show the source of our income and the regularity and consistency. I also sent them our joint personal checking account statements. We make deposits from our individual business accounts into the joint personal checking to pay the household bills including the mortgage. The joint checking also establishes the monthly contributions we both make towards the mortgage. I also provided them with my individual savings account bank statements. Lastly, I referenced my retirement account in my financial statement and hardship letter but did not provide the actual statement (since this is not a liquid asset).

I believe the consensus on this forum based on the guidelines is that you do not have to divulge your spouse's income information unless you need your spouse's income to qualify for the mod. In my case I do which is why I provided them with his business account banking statements.