Thousands of homeowners apply for a HAMP mortgage modifications every day. With those applications, for thousands of honest and hard-working Americans go their best hopes of keeping their homes. So, shall we say this is just a little bit important? Yet the vast majority of applicants who review their application with me prior to submittal make errors in the Income Section of the application. That’s right, they get their own income wrong! Since my advice is to not submit an application with even a zip code error, this one really “gets my goat” (you know that’s a racehorse term, right?). Here’s my advice about the income section of your mortgage modification application:

1. Include the right household income. That is, you must include the income from the parties signed on the loan. Any other household income need only be included at your discretion. So, even if your spouse, partner, significant other or adult children or parents contribute income, you need only include their income if you decide to.

2. Calculate your income correctly. You may laugh at this but MANY people miscalculate their own income! Common errors are using net instead of gross income, confusing bi-weekly with semi-monthly paydays and using last tax year’s income instead of the most recent past 90-days. Show your calculations right on the pay-proof. That is, show exactly how you extrapolated and calculated. That way, they understand and, hopefully, agree.

3. Document your Income beyond reasonably. Go beyond what is reasonable in this area. Do more than the bank requires. Imagine that your application is actually in front of an underwriter for final approval. You want it to be bullet-proof. I recommend that you notarize your self-employed P&L, include annual award letters as well as check copies for SSI and EDD earnings. Create and notarize Attestation Statements on bank statements when used as documentation of cash earnings, etc.

4. Augment household income, if you must. If there’s inadequate income to qualify for the mortgage modification then you have to augment your income. Don’t bother trying to apply if your ratios are not right. That’s wasting your own time. Some ways people are adding to their household income to qualify include: If self-employed, use your best period!! Renting out a room Renting the garage Getting a 2nd job Get adult Children to pay rent Get parents pay for room, driving, etc. Get a Contribution Letter from relative or friend

5. Diminish household income. That’s right, some folks fail to qualify because their mortgage payment is too small a percentage of household income. They mustdiminish income! Some ways my clients have reduced incomes to qualify are: Removing income from household members who are not signators on the loan Re-evaluating cash and other non-traceable income like tips Removing “at risk” income such as bonuses re-evaluating expense items on self-employed P&L

Get the Income section of your mortgage modification right and you have a solid base on which to build a winning application.

Need help actually getting Mortgage Modification? Visit Rockwood’s site about DIY Loan Modification at Home Loan Modification

High School physics to the rescue! Let me tell you how inertia…in this case, file inertia…can help you get a mortgage modification.

I coined this term to help my readers understand a basic tenant of mortgage modification reality. O.K., so it’s not a scientific breakthrough. It can still be important, right?

Applications (files) that are moving tend to remain moving. Files once stopped, tend to stay that way. It seems like a “blinding glimpse of the obvious”, no?

Here’s how it can help you to win a mortgage modification and improve your family’s budget. There is a force acting upon all modification applications that tends to stop them. It’s called overwhelmed. The banks are still overwhelmed with the sheer number of applications. All systems and processes are strained to the breaking point so it is logical for them to “stop, reject or send back for updates and corrections”, as many files per day as possible. This “rework” gets the file off their desks and onto someone else’s. AND, it becomes your problem, not the bank’s. You can’t let that happen to yours! Here’s what to do about it.

For anal retentive types, this will be easy (and, do not read into that statement any insinuation that the whole process has a relationship to excrement). And, for others with less obsession with details, I will make it easy for you. Your application has to be perfect. Not only do you need to provide all the information that is required but you must also organize it and present it in a way that is perfectly understandable to an inexperienced, barely trained loss mitigation agent. Items such as missing documents, unsigned Tax forms, expired form 4506-T and inadequate income documentation make it vulnerable to rework.

8 Tips to get file inertia on your side:

1. Document Income correctly and show it clearly. This includes, notarizing self-employed P&L, including annual award letters for SSI and EDD income, showing calculations for monthly gross amounts and explaining precisely how you calculated recent 1099 income.

2. Document rent income correctly.

3. Be certain your front-end Debt-to-Income ratio is right. Calculate this as the total monthly payment on the 1st mortgage divided by your gross household income. It must be higher than 31%.

4. Your back-end DTI (total indebtedness as percent of gross household income) must be less than 70%. If it is higher, you will get rejected for having too much debt.

5. Get a copy of your credit report. Make sure you have included on your budget, all current debts that show-up. That’s not to say you have to list them as current monthly debt payments, just be sure all of them are dealt with in your application.

6. Bottom line of your budget…after income taxes, debt payments and costs-of-living…you should have $0 remaining.

7. In order to be reviewed, seriously reviewed, you must be in default. Most require that you be more than 60 days late before they send your file to the collections department. That’s where you want it to be in order to get considered for a modification.

8. Construct it like you are there live, presenting it in person. Include a cover letter, a table of contents page, and notes to clarify every little thing.

If you take these 8 tips seriously you will get file inertia working for you. It can be one piece of high scool physics that really pays off for you.

Need more “insider tips” to get Mortgage Modification? Visit Rockwood’s site about DIY Loan Modification at Home Loan Modification Free reprint avaialable from: Mortgage Modification Tips.

The re-default rate of loans modified in the first quarter of 2009 was 51.5 percent by the end of the year, according to the Office of the Comptroller of the Currency and the Office of Thrift Supervision.

Assistant Treasury Secretary, Herb Allison gave his opinion. “Borrowers were more likely to re-default when their monthly payments aren’t reduced enough in modifications to make staying in a home affordable. Our data show that when you reduce payments by 20 percent or more you have a tendency for lower re-default rates,” he said.

This is bad news. If you are looking for Jacksonville Loan Modification Help, don’t become a statistic. Here is why this is happening. Many homeowners get desperate and accept a loan mod they can’t afford.

Are you negotiating with your lender to reduce your monthly payment? Before you start, run your budget. Figure out what you can afford to pay each month. Decide on the highest monthly payment you will accept. Draw a line in the sand. If you can only afford $800 a month, then don’t accept a $1,200 payment.

The second loan modification is much harder to obtain. Lenders are reluctant to reduce your payment a second time, because they think you will default a third time around.

Review all your options to avoid foreclosure. Research your local housing market. Many people have been able to rent a house for much less than their mortgage payment. Here is one example. A couple owned a house with a $1,400 monthly mortgage payment. The home’s value had dropped by 50%. Their lender wouldn’t reduce their payment.

They found a nicer house to rent for $850 a month. This is one option. If you want to keep your home, you need to negotiate for a payment you can afford. Do not let your lender push you into an unaffordable payment.

Not being able to afford your home is tough. You are stressed out. You and your spouse might argue over money. You might think about your problems when you are at work, which might affect your ability to do your job. You then risk getting let go. Where will your lender be at that point? This is why it is in the lender’s best interest to reduce your payment where you can afford it.

Our loan modification kit has the information on how to make the argument. We show them that they will make more money by accepting your loan modification versus foreclosing on the house. They’re in the business of making money, right? That is why this strategy works. Get more info at Jacksonvilleshortsaleblog.com

Thanks for reading this, Chris Curry.

Chris is a real estate agent at Keller Williams Realty.

Phone: (386) 719-2330.

Learn more about keyword #1. Stop by Ben Curry’s site where you can find out all about keyword #2 and what it can do for you.

They sucked out $1,800. This caused major financial problems for this guy. He couldn’t afford gas to get to work. The reason that the debt collector was able to get the extra $1,300 was the fine print on the bottom of their form. The moral of the story? Never give any of your financial information to a debt collector or anyone.

If you do settle with a debt collector, only send them a payment where they can’t track you. Use a money order. Money orders keep all of your bank account information private. You can buy one with cash or a debit card. The debt collector will never get your account information.

Never give any of your financial information to a debt collector. Do not send them info on your checking account, savings account, IRA, 401k, or any other financial account you have. Many state and federal laws often give a debt collector permission to take money out of your accounts, with or without your permission.

Unless you are a lawyer, you won’t know if or when they can take money. So you are simply better off never giving them your info. The debt collection company that I mentioned above is based out of Colorado. I don’t remember their name. They tried to collect from another person I know. They were very pushy. They only wanted his checking account info.

They wouldn’t accept any other payment method. It appears they use that tactic on everyone they call. Hope this helps you in your situation. Would you like to discuss your situation with me? You can call e-mail me at Jaxssblog@gmail.comor call me at (386) 719-2330.

Our loan modification kit has the instructions you will need to get a loan modification approved. We show you how to prove to your lender that they will make more money by accepting your loan modification versus foreclosing on the house. They’re in the business of making money, right?

That is why this strategy works. Get more info on this strategy and the tools you need for a successful loan modification by clicking the link.

Discover how other sellers successfully did a short sale and request a free consultation by clicking the link.

Thanks for reading this, Chris Curry.

Chris is a real estate agent at Keller Williams Realty.

Phone: (386) 719-2330.
Email: Jaxssblog@gmail.com

Chris Curry and his team specializes in loan modification assistance and short sales in Jacksonville Florida. Jacksonville Loan Modification Help, Jacksonville Short Sales.

Learn more about keyword #1. Stop by Ben Curry’s site where you can find out all about keyword #2 and what it can do for you.

Many people think you will have a better opportunity of getting a loan modification if you pay up some of your back payments. It all depends on who you are talking to at your lender. When you first get behind on your payments, you will be dealing with the collections department. In my opinion, these people will tell you anything, just to get you to pay a dime. Let me explain.

Their job is to collect as much money as possible. It’s in the lender’s best interest to get you to pay them anything. They don’t want to approve a loan modification until they absolutely have to. Loan modifications mean they have to hire on more employees. That costs money. Not good for the balance sheet.

They want everyone behind on payments to catch up. If they can do that without a loan modification, then great. They just want to get payments coming in. “Just get people to pay anything. The more the better”, the managers say.

Most lenders take a month or longer to even look at your loan modification file. They can’t approve a loan modification until someone processes the file. In the meantime, the collection people are still calling. Those collections people want to get paid. But, they are trying to get money before your loan modification even has a chance of getting looked at. This is why you have a better chance of getting a solid loan modification when you are behind on payments.

Our Gainesville loan modification kit has the information on how to make the argument. We show them that they will make more money by accepting your loan modification versus foreclosing on the house. They’re in the business of making money, right? That is why this strategy works. Get more info at Jacksonvilleshortsaleblog.com

Thanks for reading this, Chris Curry.

Chris is a real estate agent at Keller Williams Realty.

Phone: (386) 719-2330.
Email: Jaxssblog@gmail.com

Looking to find the best deal on keyword #1, then visit www.yoursite.com to find the best advice on keyword #2 for you.

Jacksonville FL – A forbearance is when you catch up all your back payments and continue paying your original mortgage payment. This is a good option for many. However, it doesn’t reduce your payment as much as a loan modification does.

Most lenders are glad to negotiate a forbearance. The one advantage is that the process is much shorter. You avoid the lengthy and troublesome loan modification process. A forbearance can normally be approved in two weeks to a month. Contrast this with the one to six month process associated with loan modifications.

The big drawback with a forbearance is that it doesn’t reduce your payments. In fact, the first 12 months are tough. Here is why. You are re-paying the back payments during those 12 months.

This means your monthly payment actually increases. If you were paying $800 a month before, you are paying $1,150 during the forbearance. Many homeowners accept a forbearance only to default because they can’t afford the higher payments.

A good loan modification is what they really need. However, the lender will be reluctant to approve it. Why? Because they already defaulted on the forbearance. This is why I recommend you only ask for a forbearance if you can afford the higher payment.

Was the original reason you defaulted because you could not afford the payment? In this case, a loan modification is a better option. Our loan modification kit has the instructions you will need to get a loan modification approved.

To get more info go to jacksonvilleshortsaleblog.com

Thanks for reading this, Chris Curry.

Chris is a real estate agent at Keller Williams Realty.

Phone: (386) 719-2330.

Chris Curry and his team specializes in loan modification assistance and short sales in Jacksonville Florida. Jacksonville Loan Modification Help, Jacksonville Short Sales, Jacksonville Loan Modification.

Want to find out more about keyword #1, then visit Ben Curry’s site on how to choose the best keyword #2 for your needs.

If you’re in need of a mortgage modification then you need to be informed of the mortgage loan modification criteria to ensure that you get approved for it. You will need to understand the way to fill your application in a correct way and should know how to respond during the telephone interview. If you properly manage this process, then there is a greater chance that your application will be approved. So be well prepared and collect additional facts regarding mortgage loan modification criteria.

Throughout the paperwork process make sure that you delete any unnecessary costs from the financial statement so that you can demonstrate to the bank that you’ll be able to afford the mortgage loan payment. Your payment should be approximately 30% of your monthly income. So plan all your expenditures and spending budget by keeping this point in mind.

The next matter you will need to remember in order to fit the specifications is that you need to be presently living in the home you’re trying to get a modification for. This really is an extremely important criteria that you have to comply with. Second residences or family vacation homes don’t typically met the criteria for loan modifications.

And so when it comes to meeting the mortgage modification specifications, the main secret is creating the right financial statement. This is a very critical document that your bank will meticulously critique. The loan company also must know your household income and your expenditures in order to review your ability to repay.

Be sure that you satisfy the home loan modification requirements, gather the needed documents, bank transactions, income tax and other financial statements. Make certain that you deal with all the documents properly so that your application will likely be accepted. This can help you emerge from the present financial crisis in a much better way.

In order to ensure approval, I strongly advise you obtain assistance from loan modification professionals. These specialists speak your lender’s terminology and know the course of action required. Many modification companies offer free consultations to get going.

Related Article: chances of getting loan modification

Have factors in your life give you no choice but to file bankruptcy? All these difficult economic circumstances have pushed a lot of people to do precisely the same; if you included your property in the bankruptcy or even if you just need to move to obtain a new job or get closer to family, or for whatever purpose, you might be thinking about acquiring a home loan just after bankruptcy. This is how to accomplish it:

To start with, permit some time to pass when trying to acquire a fresh mortgage. About two years is the commonly approved amount of time for the majority of lenders to start considering you for a mortgage once more. Those 2 years provide you and your prospective creditors time to take stock of your circumstances and show that you’ve had ample opportunity to recover and begin your own personal financial recovery.

Secondly, make sure to pay all your bills by the due date. Through this tough period, it usually is tough to ensure timely bill payment, even with the relief you received from your bankruptcy. Nevertheless, it’s very critical.

Additionally, you need to ensure that everyone who’s receiving payments from you is accurately reporting your good standing to the credit agencies. Obtain your annual free credit report, or maybe even fork out a couple of bucks to get one more regularly than that. Should you be paying your bills on time, but no one is able to see that, it’s just a good thing gone to waste.

Last but not least, start securing the funds to provide a down payment. Whenever my credit rating was good, I did not need much of a down payment whatsoever; currently, however, following my bankruptcy discharge, if I need to purchase a house again, I am going to need a substantial sum of money to pay down. You will, too.

So begin saving as much as you can out of each and every pay. Soon, you’ll be ready to guarantee a mortgage loan and buy a home of your own.

Related Articles: citimortgage modifications | hamp help

If there is a situation where you will lose your home shortly, you should prefer foreclosure help. People who are facing problems like foreclosure must realize that various options are there to escape from foreclosure. Help is mainly for those people who don’t want to lose their home and are interested in negotiating with the lenders. There are other options too, to avoid foreclosure.

Take the help of lenders during adverse situations. Give instant reply to lenders. Collect information on options that may remove your financial troubles. By not replying to mails, you are inviting new problems. Ask your lender to fix easy and affordable monthly mortgage payments. Also get updates on foreclosure laws.

The reality is that lenders are doing there task and want there money back. They lend money to help people with the expectation that debtor will pay back the amount on time. Mostly, lenders appreciate negotiation and prefer to evade foreclosure.

Lenders can help you in this kind of miserable situation, nevertheless you have to sit and discuss with them your problem in detail. According to your situation, they will guide you about the options. Lenders don’t like to have your house back forcibly. Instead of giving your sweet home through a foreclosure, it would be best to choose foreclosure help.

Foreclosure help can be done in several ways. Even if you are not eligible you can eliminate foreclosure from your credit history. This will be fruitful in case you buy a home in nearby future. Take the assistance of lender as he can advise you the best method to avoid foreclosure.

Consult with the lender and give complete updates of your financial situation. Consultation will not cost you single penny. However, lenders will lessen your burden with remarkable foreclosure options.

Related Article: can a home loan modification be denied?

categories: loan,modification,real estate,foreclosure,homes,mortgage,finance,refinance

Last year, we spent tons of time with clients to figure if they qualified for a mortgage modification. In 2010 it takes us about 10 minutes and is nearly perfectly accurate. It’s because the banks have become so very standardized and predictable.

The Making Homes Affordable Program Guidelines have become the standards. All in-house programs are modeled after the MHA, although others are not nearly as rich and are even harder to get. But the guidelines have become universal.

I say predictable because the sheer numbers of applications has forced the banks to routinize everything – including erroneous rejections – to a point where it is pretty obvious to us veteran loan mod freaks.

You’ll get a mod if 1) you have a typical hardship (income down, expenses upduh!), 2) your loan qualifies (non-jumbo, made before 1/1/09), your ratios are right, 3) you live in the home, and you are in default. That’s not to say that landlords have no hope they just have less likelihood of approval and should have lowered expectations.

Don’t mistake qualifying with getting approved! Thousands of qualified applicants get rejected every day! Being qualified is just the beginning of the journey. You have to know how to navigate this bureaucratic, convoluted, administriviated maze (don’t bother to right-click – I made up that word!). You can’t do that with advice crafted for the masses – advice you get from the banks themselves or from the government. You need to get advice from a source that has actually succeeded in getting throught he maze – time and again.

That’s why you need to have the insider, street-smart advice of someone who has “been-there” and “done-that”. If you follow the advice of the government or bank sponsored entitieswell, you just get plain vanilla – good for the masses- kind of advice. You need much more if you hope to get to the front of the line and actually cash in on some of this relief. So, don’t be nave. Get advice from the trenches. You’ll have to pay for it – but, hey, you get what you pay for. Do it!

Interested in street-smart tips on Mortgage Modification? Visit Rockwood’s site about DIY Loan Modification at Home Loan Modification This article, Mortgage Modifications Have Changed is available for free reprint.