| illistrations a customer is set up on a forbearance plan | | | | liabilities. This is what makes and breaks the entire loan |
| prior to completing a loan modification which allows a | | | | modification review. This form also shows whether or |
| mortgage company to monitor the fiscal condition of a | | | | not the customer will be able to make payments if the |
| customer during the special forbearance period to be | | | | loan is modified. There must be a surplus wages at the |
| sure the customer will be able to make payments to | | | | end of the loan modification or else the plan will be |
| the lender. There are significant documents required | | | | denied. The plan must be affordable. If a customer is |
| that are reviewed by a mortgage company | | | | severely over-leveraged with debt there is little chance |
| Hardship Letter: | | | | that a loan modification will cure the delinquency. |
| To meet the requirements for a loan modification | | | | Monthly expenses are reviewed to determine what |
| customer must have a compelling hardship. The | | | | bills are necessary and what are unnecessary. |
| hardship must be documented and given as many | | | | Necessary expenses are food, utilities and gas and an |
| facts as possible to support your case. A is very | | | | example of unnecessary are entertainment expenses, |
| subjective and pretty much a requirement in the | | | | expensive phone plans and unsecured debt. Household |
| course of getting a loan modification. There are a few | | | | expenses loan payments, utilities, and taxes take up |
| adversities that are considered charitable and do not | | | | most of the monthly budget. Do not make operating |
| meet the criteria quitting a job or reducing the amount | | | | costs look unreasonable will be a red flag to get |
| of hours worked are typically unacceptable. The | | | | further detail. The negotiators will always look for |
| adversities are documented and if there is an additional | | | | assets that can be liquidated. |
| non-payment the customer can not use the same | | | | Proof of Salary: |
| reason for non-payment otherwise their previous | | | | The proof of wages is usually a paycheck stub, a P&L |
| adversities was really not over and in many instances | | | | Profit and Loss Statement if self employed, or |
| the customer is not allowed a loan modification. | | | | checking account report showing paycheck deposits. |
| Financial Statement: | | | | The proof of wages is required to prove the customer |
| This is used to verify the customer ability to pay. This | | | | has steady wages. The customer must also give |
| is usually the first form reviewed by the lenders | | | | frequency of wages. The proof of wages must |
| mediator. This form must clearly indicate monthly | | | | correspond with the wages shown on the financial |
| wages and expenses as well as current assets and | | | | report. |