| Struggling borrowers needing help to lower their | | | | short but descriptive-one page is ideal. The Financial |
| mortgage payments need to learn how to find and | | | | Statement is really the single most important part of |
| complete the required loan modification forms. Every | | | | your application. Based on how you prepare this |
| lender requires a borrower to submit an application | | | | form, your lender will make a determination as to |
| that includes the required loan modification forms. | | | | whether you qualify or not. That is why it is so |
| Why are some homeowners approved for a loan | | | | important to work on this ahead of time-do not give |
| workout while others are denied? The secret is | | | | your bank any information about your income or |
| knowing how to prepare the application forms | | | | monthly bills until you have sat down and worked out |
| properly so that they will meet the lenders guidelines | | | | your budget. The goal is to show the bank that the |
| for approval. The new federal program called HAMP | | | | current payment is unaffordable and that you cannot |
| features a standard formula to determine which | | | | make ends meet. But you most also be able to show |
| borrowers are eligible, use this formula when | | | | them that you will be able to pay and maintain the |
| preparing your forms and you will have the inside | | | | new modified payment each month, and have a little |
| edge. | | | | bit of disposable income left over for emergencies. |
| What are the required forms and where can you get | | | | This is easy to do when you use a software |
| them? Below is a list of the loan modification forms | | | | program designed just for homeowners-all the |
| that most lenders will require to consider your | | | | calculations are done immediately and accurately for |
| application: | | | | you. If you are not sure how to figure your debt |
| | | | ratio, target payment or the other critical calculations, |
| 1. RMA: This is a 3 page form that is required for the | | | | use this software program to avoid mistakes and |
| HAMP program-Home Affordable Modification-that | | | | prepare the application correctly. |
| includes the borrowers basic information, like name, | | | | The forms are available in a do it yourself kit along |
| address, social security number, dependent | | | | with detailed instructions and software program for |
| information, job history, etc. This also includes a brief | | | | preparing them. The secret to a successful application |
| accounting of the household monthly income and | | | | is to complete the required loan modification forms |
| expenses. This is what will be used to determine if | | | | so that you have met your lenders guidelines for |
| you fit into the formula for modification approval. | | | | approval. You must take the time to learn those |
| 2. 4506T- This form is required to be signed and | | | | guidelines and know how to prepare your forms |
| submitted so that the lender can order copies of | | | | properly so that you will have the best chance of |
| your trax return transcripts. This is done to verify | | | | success. Even the most deserving borrower may |
| the validity of what you are submitting. | | | | denied the help they need if their loan modification |
| 3. Hardship Affidavit/Letter: The affidavit is signed | | | | application is not completed properly. Make the |
| under penalty of perjury and explains your current | | | | decision to become informed and be prepared so |
| hardship situation. You must prove to your lender | | | | that you can have a fighting chance to save your |
| that you have or will suffer a financial hardship | | | | home. This is too important to leave to |
| causing the current mortgage terms to be | | | | chance-thousands of homeowners have already |
| unaffordable. A compelling and convincing letter will | | | | gotten help and you can too! |
| help your lender to decide in your favor. Keep it | | | | |