- Hardship
- Income
- Front End Debt To Income
- Back End Debt To Income
- Net Present Value Calculation
- Illness
- Loss of Job
- Reduced Income
- Job Relocation
- Divorce
- Marital Separation
- Medical Bills
- Mortgage that is Adjusting
- Normal Wages & Salaries
- Overtime Pay & Commissions
- Fees, Tips, & Bonuses
- Social Security, Disability, & Unemployment
- Housing Allowances & Rental Income
Your monthly payment on your 1st lien mortgage which includes: Principal, Interest, Taxes & Insurance. What Percent is this payment of your monthly gross income? The government has determined that 31% or less is a "healthy" place for this to be. If you are over 31% you qualify on this requirement.
Back-End DTI takes into account all of your monthly debt payments other than your 1st lien mortgage. If you have a second mortgage this payment is part of your back end debt to income.
To sum up this requirement, the bank wants to make sure that if they do offer the modification that you will be able to afford it along with your other obligations
If you have passed all other requirements up to this point the lender will now evaluate your situation based on the following:
What is in the investor's best financial interest?
Is the value of the mortgage to the investor greater if the loan is modified than if they move to foreclosure? Which option provides the best cash flow based on the today's value of the home.
In this analysis for potential clients we examine all 5 points that are involved in achieving a successful modification under the HAMP Guidelines.
We will:
- Run the "Pre-Modification Analysis" to identify whether or not you are a good candidate for a modification.
- Help you understand the options available to you, including answer questions on the government modification programs.
- Help you create a game plan to correct any potential issues that the analysis might uncover which would prevent you from a successful outcome.
- Provide information that you would need if you decide to attempt a modification on your own.