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Reasons why most Loan Modifications are denied.
For additional help, please fill in the form below. After reading this page, go to Calculate Your Mortgage.
While documentation is required, the numbers presented by you are the most important and drive the decision. If you would like Operation Restoration to review your numbers, please fill out the worksheet under the Making Home Affordable or Traditional lesson and send it in via email or fax.
Then borrowers are denied. Do not give up. Many times you can adjust your numbers based on this explanation. The following are reasons denials occur. Please make sure you check your documentation first before speaking with your Servicer. Most denials occur from: To correct this, call and BACK OUT the repayment plan from the system and then fax in paperwork days later make sure to call the Servicer first to make sure their system is clear of any other plan.
Why is the news reporting that a multitude of people are receiving trial periods and no modifications? Verbal answers were given but borrowers, when asked for supporting documentation, could not provide it. Occupancy - Borrowers gave numbers on rental or 2nd homes when the property had to be owner-occupied.
Self-employed Borrowers did not give correct supporting documents, like Profit and Loss. Servicers input numbers into a "calculation model" which gives them a "Positive" or "Negative" score. Basically this tells the Servicer which is more financially beneficial - to modify or to foreclose.
Borrowers should always ask for the reason if they receive a "Negative Score". A more detailed definitiion about NPV is below. The Borrower should try to fit Traditional guidelines. The Home Affordable Modification Program requires a calculation of the net present value NPV of a modification using a formula developed by the Department of the Treasury.
Based on the NPV results the owner of your loan has not approved a modification.
Borrowers should request what input values were used to avoid errors in Servicer input and ask what factor caused the NPV to be negative. Unpaid balance on the original loan as of [Data Collection Date] b.
Interest rate before modification as of [Data Collection Date]. Months delinquent as of [Data Collection Date] d. Next ARM reset date if applicable e. Next ARM reset rate if applicable f. Principal and interest payment before modification g. Monthly insurance payment h. Monthly real estate taxes i.
Monthly HOA fees if applicable j. Monthly gross income k.
Co-borrower FICO if applicable n.Our Space Coast Credit Union help center allows you to find answers to frequently asked questions, access auto and mortgage loan calculators, articles, and more.
A month or two ago I heard about the Obama Administration's “Making Home Affordable” refinance program. At the time we had already tried to refinance our mortgage once in January or February, and had decided not to proceed because it would have meant that we would have to start paying PMI on our mortgage.
A hardship must be something that has been out of your control that has forced you into a financial corner. Medical issues, job loss, death in the family are examples of hardships. Authorization letter is a legal document used by someone who is absent or physically incapacitated and needs certain business or personal actions to be taken in his or her behalf by a reliable representative.
An escrow account is a separate account that is established to collect homeownership-related expenses such as property taxes and insurance. Once a year, you will receive an escrow disclosure statement that details what was paid from escrow and projects the coming year expenses.
Last month after reading up on the Obama Administration's new “Making Home Affordable” refinance program, I decided to look into it for our household.
We're sitting on a % 30 year fixed rate mortgage right now, and we'd like very much to be able to refinance that loan into a lower APR. With.