NEW: Updates HAMP TIER 2 and STREAMLINE MODIFICATION ANALYSIS 8/20/2014
Loan Mod Help Center has decided to post a thread here on loansafe to help out people here on the forum that really might be trying for a modification and have no idea, that they are already in a much better situation then a modification could help with.
So many times we find out after having done thousands of complimentary income and property analysis that the mortgage is not the problem.
We have turned down so many loansafe.org members who would not benefit from a modification, since they make too much income, or too little, or didn't have a proven hardship, or had more than 25% equity, these folks would not benefit from a purchase, unless they wanted to prove that a short sale or foreclosure had a higher NPV than a modification so they could pick those option.
In addition, something very important to realize when looking into a modification is the monthly household budget and your credit report liabilities, and we use a balanced budget approach as the basis for some of our inputs, and can help you correct budget issues as part of our support.
You can have a perfect scenario for modification however if the budget is not a "cash flow solvent" budget as opposed to an "insolvent" and balanced budget, to the widely accepted statistical norms and household allowances, you could be denied for having too much debt or excessive monthly obligations in relation to income, or having too much of a surplus.
You can save yourself time and a phone call by posting the following information or emailing the below information to [email protected].
***A modification is not a way to get a refinance and will impact your credit so if you are not late because of hardship, and can't prove an income decline hardship or expense hardship that is long term, then you should reconsider a modification attempt.
Please us this format only and let us know the urgency of your situation so we can prioritize scenarios depending on proven hardship:
EMAIL US THE FOLLOWING OR POST UPDATED 8/20/2014 TO [email protected]
1. Loan Balance Now=
2. Past Due if any=
3. Gross Monthly Income for Borrower and Co Borrower=
4. Mortgage Payment without taxes and insurance (do not include taxes and insurance) =
5. Real Estate Taxes per month=
6. Insurance and/or HOA per month=
7. Home Value (check eppraisal.com and chase home value estimator)=
8. Mortgage Servicer and Investor (check if fannie or freddie or MERS below links)
9. Other monthly debt payment total for credit cards and collections =
10. Current interest rate =
11. Fixed Rate or Adjustable Rate? =
12. Have you been modified before? if so, what date? =
13. When did you get this loan, what year? =
14. If you own any other properties, include PITIA for each property and gross rental income for each=
Does Fannie Mae Own Your Mortgage? Loan Lookup Tool Fannie Mae Look up
http://www.freddiemac.com/mymortgage Freddie Mac Look up
if not fannie or freddie, look up your loan at MERS:
https://www.mers-servicerid.org
Qualifying for a modification:
Spending more than 31% of your gross income on PITIA or are more than 60 days past due or soon will be· Having enough income to support a mod is critical, too much income and you don't qualify and too little you don't qualify·
No documented hardship makes getting mod more difficult as a mod is not a refinance
How your modification is figured out:
NEW as of 7/1/2014: Calculate payment of between 10% to 55% of gross income using benchmark freddie mac market survey rate rounded to nearest 0.125% if loan is owned by fannie or freddie.
Use up to a 480 month amortization on new unpaid 1st mortgage loan amount of past due plus existing balance.
Target payment of 31% housing PITIA to gross income ratio if possible using a rate of as low as the floor rate of 2% as first option under HAMP Tier 1 over 480 month maximum term allowed.
This new 1st mortgage housing payment must fit the targeted debt-to-income (DTI) ratio and is dependent on other credit reported debt liabilities for a total debt to income ratio of 55% to 65% depending on mod program.
The HAMP mods do not have a total (back-end) DTI ratio for all credit report liabilities,
Review for principal reduction using alternative published loan modification waterfall HAMP Tier 1 and HAMP Tier 2 techniques with principal reduction as first step down to 115% of market value from several online sources.
Reduce the interest rate in 0.125% increments to find a payment that is as close to the targeted DTI as possible. However, the lender does not have to go below a 2% interest rate.
If the targeted 10% to 55% housing to income (31% to 42% is preferred for most servicers) ratio goal cannot be reached, the length of the loan may be extended to be up to 40 years long.
If the 31% goal still cannot be met, the lender can, but does not have to, start to forbear or forgive principle.
Forbearance of the lesser of up to 30% of the new unpaid principal balance or 115% of market value, is allowed by Fannie and Freddie (they do not allow principal reduction alternative under HAMP tier 1 and do not participate in tier 2) and other servicers as a last resort and means a specific amount will be due in one payment at the end of the loan.
Forgiveness means that the principal and/or past due is written off for some investors that participate in principal reduction.
email [email protected] the above inputs to get your own unique, unbiased loan mod scenario evaluation and analysis.
Michael
http://www.loanmodhelpcenter.com
http://www.diligencegroupllc.com
email us with the 14 inputs above at [email protected] or post the answers at the end of this thread.
Loan Mod Help Center has decided to post a thread here on loansafe to help out people here on the forum that really might be trying for a modification and have no idea, that they are already in a much better situation then a modification could help with.
So many times we find out after having done thousands of complimentary income and property analysis that the mortgage is not the problem.
We have turned down so many loansafe.org members who would not benefit from a modification, since they make too much income, or too little, or didn't have a proven hardship, or had more than 25% equity, these folks would not benefit from a purchase, unless they wanted to prove that a short sale or foreclosure had a higher NPV than a modification so they could pick those option.
In addition, something very important to realize when looking into a modification is the monthly household budget and your credit report liabilities, and we use a balanced budget approach as the basis for some of our inputs, and can help you correct budget issues as part of our support.
You can have a perfect scenario for modification however if the budget is not a "cash flow solvent" budget as opposed to an "insolvent" and balanced budget, to the widely accepted statistical norms and household allowances, you could be denied for having too much debt or excessive monthly obligations in relation to income, or having too much of a surplus.
You can save yourself time and a phone call by posting the following information or emailing the below information to [email protected].
***A modification is not a way to get a refinance and will impact your credit so if you are not late because of hardship, and can't prove an income decline hardship or expense hardship that is long term, then you should reconsider a modification attempt.
Please us this format only and let us know the urgency of your situation so we can prioritize scenarios depending on proven hardship:
EMAIL US THE FOLLOWING OR POST UPDATED 8/20/2014 TO [email protected]
1. Loan Balance Now=
2. Past Due if any=
3. Gross Monthly Income for Borrower and Co Borrower=
4. Mortgage Payment without taxes and insurance (do not include taxes and insurance) =
5. Real Estate Taxes per month=
6. Insurance and/or HOA per month=
7. Home Value (check eppraisal.com and chase home value estimator)=
8. Mortgage Servicer and Investor (check if fannie or freddie or MERS below links)
9. Other monthly debt payment total for credit cards and collections =
10. Current interest rate =
11. Fixed Rate or Adjustable Rate? =
12. Have you been modified before? if so, what date? =
13. When did you get this loan, what year? =
14. If you own any other properties, include PITIA for each property and gross rental income for each=
Does Fannie Mae Own Your Mortgage? Loan Lookup Tool Fannie Mae Look up
http://www.freddiemac.com/mymortgage Freddie Mac Look up
if not fannie or freddie, look up your loan at MERS:
https://www.mers-servicerid.org
Qualifying for a modification:
Spending more than 31% of your gross income on PITIA or are more than 60 days past due or soon will be· Having enough income to support a mod is critical, too much income and you don't qualify and too little you don't qualify·
No documented hardship makes getting mod more difficult as a mod is not a refinance
How your modification is figured out:
NEW as of 7/1/2014: Calculate payment of between 10% to 55% of gross income using benchmark freddie mac market survey rate rounded to nearest 0.125% if loan is owned by fannie or freddie.
Use up to a 480 month amortization on new unpaid 1st mortgage loan amount of past due plus existing balance.
Target payment of 31% housing PITIA to gross income ratio if possible using a rate of as low as the floor rate of 2% as first option under HAMP Tier 1 over 480 month maximum term allowed.
This new 1st mortgage housing payment must fit the targeted debt-to-income (DTI) ratio and is dependent on other credit reported debt liabilities for a total debt to income ratio of 55% to 65% depending on mod program.
The HAMP mods do not have a total (back-end) DTI ratio for all credit report liabilities,
Review for principal reduction using alternative published loan modification waterfall HAMP Tier 1 and HAMP Tier 2 techniques with principal reduction as first step down to 115% of market value from several online sources.
Reduce the interest rate in 0.125% increments to find a payment that is as close to the targeted DTI as possible. However, the lender does not have to go below a 2% interest rate.
If the targeted 10% to 55% housing to income (31% to 42% is preferred for most servicers) ratio goal cannot be reached, the length of the loan may be extended to be up to 40 years long.
If the 31% goal still cannot be met, the lender can, but does not have to, start to forbear or forgive principle.
Forbearance of the lesser of up to 30% of the new unpaid principal balance or 115% of market value, is allowed by Fannie and Freddie (they do not allow principal reduction alternative under HAMP tier 1 and do not participate in tier 2) and other servicers as a last resort and means a specific amount will be due in one payment at the end of the loan.
Forgiveness means that the principal and/or past due is written off for some investors that participate in principal reduction.
email [email protected] the above inputs to get your own unique, unbiased loan mod scenario evaluation and analysis.
Michael
http://www.loanmodhelpcenter.com
http://www.diligencegroupllc.com
email us with the 14 inputs above at [email protected] or post the answers at the end of this thread.
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