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HAMP Modification Tips
The what, the what and the what!?
There is very little in life that is more frustrating then seeking a loan modification. At times it can be exhausting and others invasive and violating, but the end result is well worth the trouble. The best strategy to make this as pain free as possible is to make certain you have all of your documents ready before the process begins.
Make a list, check it twice
Here is what you will need:
- Letter of Hardship - This doesn't have to be a autobiographical account of your life, just something brief signed and dated stating your situation.
- Proof of Hardship - Something that states why your financial situation has changed. Here is a list.
- Income History - Last two years of signed taxes or if e-filed also include 8879 form. If you do not have copies, you can submit a form 4506-T to the IRS in order to get transcripts of your taxes sent to your lender.
- Bank Statements - Official statements from your financial institution for the last two months.
- HOA Document - Like bank statements, has to be official statement that you are current and how much you pay per year.
- Property Tax Statement
- Proof of Residency - Any current bill statement will work here.
- Proof of Income - Two most recent pay stubs or if self-employed, most recent quarterly or yearly profit/loss statement - signed and dated.
- More Proof of Income - If you receive alimony, child support, separation maintenance, social security, disability or death benefits, pension, adoption assistance, public assistance, unemployment, or seasonal employment or income from any other source, you will need to provide proof. This is generally all covered by sending in two months of bank statements, but if you have any other documentation, provide that as well.
- Request for Mortgage Assistance (RMA) - The financial institution that holds your loan should mail this to you.
Filling out the RMA
One of the main things that bogs down the mortgage modification process is an incomplete RMA. Make sure to fill in every box. If you feel it does not apply then just mark it not applicable (N/A). If a section is left blank, the institution will request a resending of the document. You made copies, right? Also, it is important that every page of the RMA gets sent to the institution. If at the bottom of page one is Page 1 of 7, then you better make sure you send back all seven pages.
Is it over? What the fax...
While this covers the general information that your lender will request from you, there is always the chance that they will want something specific to your situation and they will want it faxed. Most people do not have a fax, so if you have your documents scanned, here is a low cost online fax service that is reliable. Good luck!