IndyMac Mortgage Services, a division of One West Bank FSB, has a policy that has to with all forms of income the could be considered either less than stable or not completely permanent. In order to count for a type of income for a loan modification this income must be accountable into the future. If someone is currently receiving court awarded settlement payments their income can only be accounted for if they are to receive those funds for the next 3 years. Same could be considered for child support.
The lenders do not have to right to have a homeowner include income such as child support but if the homeowner so chooses to include it they would need to try to provide proof that they would be getting it for at least the next 3 years in order for it to count. This could in turn cause many to be disqualified from loan modifications as they would show that they can not afford this type of payment arrangement. We see that for our clients it takes a good bit of creativity and loss mitigation, as being an art, has many different solutions at times for the same problem. The issue is we all want to have our clients have the best results.