Required Documentation
After determining you are eligible for a Home Affordable Modification, The Hightower Team can advise you on the modification process. However, this program takes a lot of perseverance and patience to succeed. Many critics call HAMP a failure. So don’t expect to fill out the HAMP application, submit financial documentation, and just wait. You must be purposeful in your follow-up, and provide all required documentation in a timely manner. Those who are not willing to put in the work to save their home are typically declined. This means you must provide accurate and complete information. If you truly want to save your home, this program works for a select few. It’s those who are dedicated and willing to put in the work and seek the help of professionals! Accurately following your lender’s HAMP requirements will allow the lender to modify your home loan within a reasonable time frame.
Due to the complexity, we recommend you seek the help of professionals. Request referrals from The Hightower Team or use a HUD-approved counselor when applying for HAMP. Start by compeleting the four steps outlined below and prepare all of the required information. Then speak with a qualified consultant before submitting everything to your mortgage servicer.
1. Request for Modification and Affidavit (RMA): This form provides information to your mortgage servicer about your home and financial situation. The Hightower Team provides links for both the RMA and instruction guide on this page. Note that all of the borrowers on the mortgage must sign the RMA.
2. Tax Authorization (IRS 4506T Form): The 4506T gives permission to your mortgage servicer to request a copy of the most recent tax returns you have filed with the Internal Revenue Service (IRS). Only one taxpayer is required to sign the tax form.
3. Gather Proof of Income: Your mortgage servicer is required to verify your income to ensure that the modified mortgage payments will be affordable for you. The type of documentation you need to provide depends on the source of your income. This information must be submitted monthly along with supporting bank statements or letters of explanation if the bank requests them.
4. Dodd Frank Certification:This form certifies you have not been convicted within the last 10 years of any of the following: felony, larceny, theft, fraud, forgery, money laundering, or tax evasion.
Proof of Income Checklist
If you are a wage earner, self-employed, or receive retirement income, you need to collect the documents below. Be sure to keep all original documents for your records. Do not submit original documents to your lender!
For each borrower who receives a salary, hourly wages, or is self-employed: Copy of two of your most recent pay stubs that show YTD (year-to-date) earnings for salary or hourly wages. If self-employed, provide your most recent quarterly or YTD profit/loss statement. Keep these documents each month and submit them as required.
For each borrower who has income such as social security, disability or pension, etc: Copy of benefits statement or letter from the provider that states the amount, frequency and duration of the benefit, or two of your most recent bank statements showing receipt of payment into the bank account.
For each borrower who is relying on alimony or child support as qualifying income: Copy of divorce or other court decree, or separation agreement, or other written agreement filed with the court that states the amount and period of time over which it will be received, or two of your most recent bank statements showing receipt of such payment. You are not required to disclose child support, alimony, or separation maintenance income, unless you choose to have it considered.
For borrowers who are current on their mortgage payments: Copies of your most recently filed and signed federal tax return with all schedules, including Schedule E—Supplemental Income and Loss.
Homeowner Expectations
You should be aware that a Making Home Affordable application under review can help delay the foreclosure process, but is not a guarantee. Most lenders will wait until your Making Home Affordable application has been declined or rejected before foreclosing. In some cases they will reject an incomplete application to simply foreclose! You should follow up every 10-30 days depending on the status of your HAMP application so you are not caught off guard. If the modification request is rejected or the payment is too high, the HAMP modification will allow you to qualify for HAFA.
If you have submitted a HAMP application, you must contact the lender frequently for updates. This is your responsibility! Remember, if you are not willing to do whatever it takes to save your home, then we recommend putting your energies elsewhere.
The lender will not always contact you for missing documents. Making consistent contact with your lender will make sure they have all the required documentation to complete your loan modification. Please keep in mind that if you are declined for a Making Home Affordable modification, you should immediately enter the HAFA program to avoid foreclosure. What this video below to fully understand what HAMP is all about.
Please Be Patient
Mortgage servicers receive a high volume of inquiries, so you should expect a delay before they process your application. Be sure to frequently follow up for updates and provide updated financial information each month. Save your bank statements and proof of income to submit each month. Your persistence will determine your success! If you don’t put in the effort to save your home, you will lose it!
Approval Process
If the lender approves your loan modification, you will receive a letter telling you when to start making payments. Generally speaking the lender considers receipt of the first payment as acceptance if the first payment is received prior to the due date.
The Loan Modification Program requires you to make trail payments for three to six months (or more) before a permanent modification can occur. A permanent modification will not be offered if you don’t make payments on time or break the modification agreement in any way. You only have one chance to succeed during the trial period, so don’t blow it!
