Trying to navigate the tedious job of trying to modify your own loan is frustrating enough find some time to sit in silence and regroup your inner peace this way you can find the strength within you to carry on and be successful with your goals while maintaining a positive outlook and attitude. Patience is important and I want to prepare you with how they calculate your maximum payment and how they can modify your loan to get you to that maximum payment and hopefully clear up any confusion you may have in regards to this.
Once you are evaluated for the home affordable modification plan and are not approved for the Trial Payment Plan, you must have a trial prior to being approved for the Permanent HAMP modification, your servicer is now required to advise both you and either Fannie Mae or Freddie Mac what the outcome is of your evaluation whether you are approved or not, for the trial plan or the permanent modification and if denied must provide you with the appropriate notice explaining the reason for the denial to be in compliance with the program rules.
To figure this out you need to answer these questions: What is your gross income (before taxes)? Multiply the Gross not the Net by 31% this is what they call 31% DTI (Debt to Income Ratio). Take the 31% this is the MAXIMUM TOTAL payment that home affordable modification plan will allow- if your current payment is already UNDER this figure your modification under HAMP will not be approved. What are the monthly Homeowners insurance, Property Taxes, HOA fees? Then, deduct this from the above 31% figure The balance is Maximum your 1st Mortgage Payment can be. The lender can modify terms of your loan such as interest rate to minimum 2%, term of the loan, defer principal to the end of the loan interest free or in very rare cases principal forgiveness – in this order to get you to the maximum payment calculation – usually in this order. It is your responsibility to keep timeline in mind at all times, losing your home matters to you more than anyone else so you need to stay on top of it and request postponements and verify that they have been done- again mistakes get made and you do not want that to be your postponement that was forgotten and don’t forget to write down names, departments and dates. Don’t be afraid to escalate but always remain calm and friendly with an attitude of gratitude no matter what you hear on the other end, kill them with kindness, send positive thoughts and vibes and you will be more successful, get better outcomes and feel better too.
There are several questions troubling the minds of the people which the guidelines are not able to answer. One particular condition is really unhelpful. The law states that mortgage is solely responsible for making good any payment which he has defaulted in the year prior to enforcement of law. People are hoping with the restructuring and rescheduling their credit rating may improve. A complication which is not apparent in the federal loan modification program the installment may be higher than the earlier ones.
Ask them what income they used, how they calculated it, verify all of the figures. Make sure you were not denied for required forms not being received. Once you know the reasons for your denial it will be easier for you to fix the issues and reapply for the program. You have the right to know why you were denied, and if you have changes to your circumstances you have the right to reapply if you were previously denied. Many times mistakes are made so fight for your rights.
Learn more about Obama Mortgage Relief Plan Qualifications.