I applied for a HAMP modification recently and just received a denial letter. I work for a school part-time and am self-employed part-time. Here are the high level details:
First, my initial plan was to apply for a short sale and was asked to put together a P&L for the past 3 months I admittedly did it fast and missed some business income. WF told me I needed a one-to-one correlation between my P&L income and deposits into my bank account (to verify) and asked that I redo the P&L and submit bank statements reflecting these deposits, which I did. This resulted in a higher 3 month income that absolutely tracked to deposits into my bank account. The 3 month average was $2400. I also work in a job where I have minimal expenses, but allocated $200 per month. This recalculation is actually what gave me the idea that I might qualify for a mod, so I asked if they would consider it and was told yes.
WF then asked for all the documentation for HAMP, which included a request for 30 days proof of income (paycheck) so I provided my latest one month pay statement. This was gross $2495 for the month. I informed WF that while I worked for the company since August, my hours increased mid-January (I teach). WF asked me for the January paycheck, even though I was very clear it was only a partial month. This apparently became confusing, as WF then asked me to get a letter from my employer indicating that I would be employed through the end of the year (I do not have a contract and am an at-will employee just like everyone else). When I explained that wasn't going to happen, they changed their request to require a letter w/start date, pay rate, and to say I was an employee in good standing. I sent this as well.
Now when I add the $2495 gross per month with the $2400 gross per month, I come up with $4895. Somehow WF claims my monthly income is $2650.31 per month and states I do not have sufficient income for a modification.
I called WF and was told they 'chose' to use the original P&L (the one with the mistake--not the one with the one-to-one tracking of deposits) for my business income, which is $4400 for the 3 months. They then asked me to explain why my business expenses of $200 per month are different than my business tax deductions. (I explained things like buying gas for $50 and writing off a per mile expense).
The net is they are saying my income is $2650.31 per month, and tell me I am denied for Hamp and asked if I would like to apply for a short sale. I cannot figure out where they came up with this income number, but I'm told that is what the underwriter determined was my monthly income. Really? The bank records and pay stub aren't sufficient to do that?
This makes me sick, because clearly their calculation is not correct. I ran the numbers (using a forebearance for the arrearages) and based on PITI it will be very close if they drop to 2% and kick it out to 40 years, but with a $4900 income I should qualify.
I'm not sure what the heck is going on, but please, if you have any ideas I would truly appreciate it.
btw, there is a sale date set a couple of months out.
Thank you very much!!!! (and sorry for the long details)