Frequently our clients are concerned about approaching Bank of America to complete their immanent default interview, which happens prior to their falling behind, because they don’t know what to expect. It is important to know is that if you do not answer yes to all the questions you will not qualify for the loan modification process and the assistance offered through the HAMP program.
In order to be accepted into the HAMP program one of the main guidelines that could make or break your deal has to do with your Loan Origination date. If your loan happens to have been originated before Jan 09 you can qualify for assistance. The next very important factor, that the Obama administration directives have been to help homeowner’s when it is owner occupied (the don’t think about the people in the rental properties but that is a conversation for another day).
As part of, or in same idea pattern behind what distinguishes a multi-unit property from being a residential property, HAMP puts the same guidelines to whom they will be assisting with their support. Anything above 4 units is considered commercial and as we all know this is only for saving people’s primary residences. The number of units in the property can vary from 1 to 4 but cannot exceed the set threshold.
The key ingredients to not forget about is that the servicers are in many cases looking for a Financial Change that has taken place. In many cases if your situation looks similarly to the way it did when you first got the loan chances may be likely are that you are going to get declined (this though can vary greatly and depends on how you present your case as well as). A definite hardship needs to be occurring in order to get assistance from the Treasury’s program.
In order to continue the servicer’s review they will order a Credit Report. Once it is obtained and reviewed their review will continue. Credit uses that may be deemed excessive for large purchases he will be declining.
Also, if the borrower has 3 months payment, including taxes, insurance and HOA fees (if applicable) they will not be considered a qualified HAMP participant.
One additional prerequisite is an Escrow Account is required for the life of the loan.
HAMP REQUIRED DOCUMENTS:
- If Fannie Mae, Signed 1024 Form
- 2 most recent pay stubs
- 3 month Bank statements
- Most recent signed Tax Return (1040 and all schedules)
- Letter of Hardship Signed
- Tax and Insurance Information
- HOA Information
- Profit and Loss Statement (YTD) or 30 days worth of Proof of Income
There is much more to the program and this is but only the interview. Don’t even get us started on Net Present Value (NPV).
You having trouble with your servicer? Get the help that you need. Call us at 888-934-3444. We’ll call your lender with you on the spot. We also offer our worry free guarantee that we don’t make a dime unless you find the help you need. Certified Negotiators available. Email us at [email protected] or post below to reach out to the specialists.