does lender accept high 6 figure retirement account as income sourse

[tomser]

anyone out there give me some opinions

I am in the process of sending loan md paper for my primary home to my lender
I am retired and my income source comes from my social security and retirement account ( bond ,stock, mutual fund).

My retirement accounts has high 6 figures size of money, If lender see I have very high sizable money in the retirement account ,they may disqualify the loan md even If I met those HAMP criteria. ( reset higher payment, 31%exceeding,and reduced value of my retirement account )

I have withdrawn money from my retirement account along with social security to pay my mortgage payment. It has been evaporated 30% due to stock market down turn. my lender is wells fargo

tomser

[faith]

[quote=tomser;107841]anyone out there give me some opinions

Hello and welcome to this forum,
Please read the guidelines for HAMP especially the income and asset validation and monthly gross income.


Income and Asset Validation
The borrower’s income will be verified by requiring a signed Form 4506-T (Request for Transcript of Tax Return) and obtaining the most recent tax return on file for each borrower on the note. For wage earners, the two most recent pay stubs for each wage earner on the note will also be required. For self-employed borrowers or for non-wage income, the borrower’s income will be verified by obtaining other third party documents that provide reasonably reliable evidence of income.

Borrowers must also represent and warrant that they do not have sufficient liquid assets to make their monthly mortgage payments.

Liquid assets is anything you can convert to cash in one week including (stocks, bonds,etc. Retirements assets certainly can be converted within 1 week.


Monthly Gross Income
The borrower’s Monthly Gross Income is the amount before any payroll deductions includes wages and salaries, overtime pay, commissions, fees, tips, bonuses, housing allowances, other compensation for personal services, Social Security payment, including Social Security received by adults on behalf of minors or by minors intended for their own support, annuities, insurance polices, retirement funds, pensions, disability or death benefits, unemployment benefits, rental income and other income.

Monthly net income can be used for preliminary screening and qualification. If used, the servicer will need to multiply net income by 1.25 to get to an estimate of Monthly Gross Income.


Reasonably Foreseeable / Imminent Default
Every potentially eligible borrower who calls or writes in to their servicer in reference to a modification must be screened for hardship. This screen must ascertain whether the borrower has had a change in circumstances that causes financial hardship, or is facing a recent or imminent increase in the payment that is likely to create a financial hardship (payment shock). If the borrower reports a material change in circumstances, the servicer must ask about current income and assets, and current expenses as well as the specific circumstances relating to the claimed financial hardship. Each of these elements shall be verified through documentation.

If the servicer determines that a non-defaulted borrower facing a financial hardship is in Imminent Default and will be unable to make his or her mortgage payment in the immediate future, the servicer must apply the NPV test.

The rest of the requirements you can view in the link provided for the Home Affordable Modification Program guidelines
http://www.ustreas.gov/press/release...guidelines.pdf


Hope this helps. God bless and take care. Peace be with you.

[tomser]

[quote=faith;107854]

Originally Posted by tomser

anyone out there give me some opinions

Hello and welcome to this forum,
Please read the guidelines for HAMP especially the income and asset validation and monthly gross income.


Income and Asset Validation
The borrower’s income will be verified by requiring a signed Form 4506-T (Request for Transcript of Tax Return) and obtaining the most recent tax return on file for each borrower on the note. For wage earners, the two most recent pay stubs for each wage earner on the note will also be required. For self-employed borrowers or for non-wage income, the borrower’s income will be verified by obtaining other third party documents that provide reasonably reliable evidence of income.

Borrowers must also represent and warrant that they do not have sufficient liquid assets to make their monthly mortgage payments.

Liquid assets is anything you can convert to cash in one week including (stocks, bonds,etc. Retirements assets certainly can be converted within 1 week.


Monthly Gross Income
The borrower’s Monthly Gross Income is the amount before any payroll deductions includes wages and salaries, overtime pay, commissions, fees, tips, bonuses, housing allowances, other compensation for personal services, Social Security payment, including Social Security received by adults on behalf of minors or by minors intended for their own support, annuities, insurance polices, retirement funds, pensions, disability or death benefits, unemployment benefits, rental income and other income.

Monthly net income can be used for preliminary screening and qualification. If used, the servicer will need to multiply net income by 1.25 to get to an estimate of Monthly Gross Income.


Reasonably Foreseeable / Imminent Default
Every potentially eligible borrower who calls or writes in to their servicer in reference to a modification must be screened for hardship. This screen must ascertain whether the borrower has had a change in circumstances that causes financial hardship, or is facing a recent or imminent increase in the payment that is likely to create a financial hardship (payment shock). If the borrower reports a material change in circumstances, the servicer must ask about current income and assets, and current expenses as well as the specific circumstances relating to the claimed financial hardship. Each of these elements shall be verified through documentation.

If the servicer determines that a non-defaulted borrower facing a financial hardship is in Imminent Default and will be unable to make his or her mortgage payment in the immediate future, the servicer must apply the NPV test.

The rest of the requirements you can view in the link provided for the Home Affordable Modification Program guidelines
http://www.ustreas.gov/press/release...guidelines.pdf


Hope this helps. God bless and take care. Peace be with you.

hi faith

thank you so much I appreciate it very much

thanks god I found this forum it is my life saving.

This is my primary home. it has 5 years fixed interest only loan reset much higher payment in coming September 2009

and my current payment is $1700 and new adjusted payment is $2900 almost $1200 increased. There is no way I can afford to pay it
and my income has been reduced 30% the value of my retirement account due to down turn of stock market ( bonds ,stocks, and mutual funds). I have withdrawn money from my retirement account along with my social security to pay monthly mortgage.

I am retired 70 years old, both me and my wife no job and poor health problems. So i feel I do meet the HAMP program criteria for loan md

My lender sent me the md application form( financial work sheet) to be filled in by me. In the application they ask me how much I have in the 401(k)/esop accounts, stocks,/bonds/CD, and other explain. I have high 6 figure sizable amount of money ( life time saving )in my retirement account ( bonds, stocks and mutual funds ) .

My bottom line is that If my lender sees my big sizable retirement account then lender may disqualify loan md regardless I meet the HAMP criteria. That is why I haven't mailed the loan md application to lender yet Are there any guide lines in the either HAMP or MHA stating I am not qualified due to high number of my retirement account.



any input or comment or any one else reading this may help me

thank very much

tomser

[faith]

Tomser,
Hope all is well with you and your wife.

Here’s another link for Home Affordable Mortgage Questions and Answers

https://www.efanniemae.com/sf/mha/mh...inancefaqs.pdf

What Counts as a Hardship?
A hardship can be anything that has affected your ability to make your mortgage payment. Some examples of hardships include: - Your interest rate jumped upward—Payment Shock - Illness (especially ongoing illness) - Reduced Income - Failed Business - Death in the family - Divorce - Medical Bills - Loss of a scholarship. Many other factors can be considered hardships. It is critical to the success of your request for a modification that your lender understands the hardship you are facing and the impact it is having on your ability or make your mortgage payment. Having the right advocate making this argument for you can be the difference between success and failure of your modification request.
>>I think you should apply anyway and tell them your hardship.

I've found the information below I don't know if this will help answer your questions:


Reason to modify?
Currently behind on Mortgage Payments

Currently In Foreclosure (Nod or Lis Pendens)

Has an ARM That Has Adjusted Higher or Will Adjust Higher Within The Next Month or MAXIMUM Two Months
Has a legitimate hardship
Reduced income
Pay cut at work
Reduced hours
New job (Less Pay)
Loss of employment
On disability / worker's comp
Divorce / Separation
Excessive medical bills
Back taxes that are currently going paid back (ex. Owe $30.000 to IRS and are paying that back)
Death of Household Provider
Failed Business

REMEMBER! To qualify for a modification, the client must demonstrate the inability to meet current financial obligations. Simply wanting a modification does not qualify a homeowner. They must show NEED.

What is difficult or impossible to modify?

TOO MUCH DEBT
- Client shows a lot of assets (401K, savings accounts, stocks, bonds, retirement accounts, IRA's).
- Client shows a low debt-to-income ratio (Too much income vs. expenses).
- Multiple properties
- Fixed rate mortgages that are current (depending on the lender)
- Client does not have a true hardship
- Client's sole hardship is "MORTGAGE IS MORE THAN PROPERTY IS WORTH"
- More money being deposited into personal checking account than what they claim as income
- Has had a modification done in the past year
- Has a history of missed payments beyond current situation
- Has not had the loan for at least one year
- Negative amortization loans, We can get these modified, but if the client is looking for a lower payment, it probably won't happen. e.g. $500,000 mortgage, paying $1,300 per month at 6%. Even if we were to drop their interest to 3%, their payment would still increase over $800 per month

Here’s the link where I got this information http://www.affordabledebtsolutionsinc.com/Loan%20Modification%20Quick%20Test.xls

http://www.affordabledebtsolutionsinc.com/loanmodification.php


Peace be with you. God bless you and your family and may He give you favor from your lender and their staff and management always..