The “loan modification” is a restructuring of mortgage payment, specifically with regard to the reduction of principal and interest on the interest rate, with the aim of getting an affordable monthly mortgage payment on the basis of your current financial status.
Essentially, at the end of a successful mortgage modification, your payments will be considerably lower, and restructured mortgage will allow you to remap your finances more effectively for yourself.
There are 3 major issues you should be aware of that the majority of homeowners encounter when attempting a mortgage modification and they are generally as follows:
- Qualifying-hardship: Hardships could include loss of employment, death of other half, job relocation, disability. You need to demonstrate that based on the new terms of your loan that you do have the ability to pay it.
- Documentation: Â The most difficult part of the process according to many people is the continued request for documents, often submitted on short request. The documentation is essential to determining the loan modification; all documentation is definitely time sensitive and so, a missing pay-stub may possibly delay or dismiss your modification request.
- Modification: The modification itself can be very arduous if the homeowner is acting on their own behalf; there are no promises or guarantee you will receive a modification; (an affordable intermediary may be indispensable).
Ocwen Financial is approved by the Ministry of Finance to streamline loan modification approvals for homeowners who meet the basic eligibility requirements. If you run into problems with your mortgage payments, you have no time to lose.
The first step to this streamlined loan modification plan is to pass a short questionnaire. If you can answer yes to these rudimental queries, then you can move onto submitting your application. Do you:
- Live in the home as your primary residence?
- Have a mortgage payment that equals more than 31% of your gross earnings (ascertain to include your property taxes, homeowners insurance and any homeowner dues in your calculation)
- Face a financial hardship due to less income and/or more preponderant expenses?
- Have a mortgage that was taken out before January 1, 2016 and is less than $729,750?
In the event that you passed those inquiries, then you are onto step 2 of the streamlined loan modification program. The next thing is essentially completing the paperwork and offering proof your income. That’s where it gets serious-remember that the info you provide to Ocwen will determine whether you qualify or not. This is why it is so vital that you learn about how precisely to complete the application properly in order that you meet the rules and get that speedy approval.
Take a couple of hours to learn about the Ocwen loan modification process. Understanding how to make the necessary adjustments to the application can make the difference between success and failure.
Here are seven tips that can help you get an answer to your loan modification request in just 30 days or less:
- Loan number at the top of each page
When preparing your application, make sure that on all pages of your application, your loan number is clearly stated at the top of every page, including all of the documents you submit with your application. And only submit a complete application.
- Be Proactive When Your mortgage Is Being Transferred
If your loan is transferring to Ocwen Bank loan Servicing or from Ocwen to another financial loan servicer, you might want to be proactive as a way to attempt to escalate your overview. You should uncover if there is any way to get your review escalated with the recent servicer just before your mortgage is transferred.
- Determine your MTI and DTI
If your debt to income ratio is negative compared to your total monthly gross income (before taxes) or total monthly net income (after taxes), you could be at risk of a denial. Calculate your mortgage income (MTI) and debt to income ratio (DTI) before applying. You should ask questions about your potential qualifications with your Ocwen Customer Relationship Supervisor or an educated consultant.
- Determine Your Sources of Income
Your sources of income and banks statements will help to support your request for mortgage assistance. Self-employment income is one of the most arduous to present. Contributing income needs to be considered predicated on eligibility and the contributors participation in your monthly housing expenses.
- Gross Up Social Security Income
If you are using the social security income in your application, you need to perform a gross-up calculations for social security income. Your social security income is usually given to you with your taxes already deducted by the IRS, so you need to figure out what your gross social security income before applying. You should do a Gross up Calculation. By determining your gross Social Security income, you will better understand your current mortgage to income ratio, so you can better understand your options.
- Cut unnecessary expenses
Your bank statements clearly show your spending habits. If you present your monthly expenses to the lender on their financial worksheet, but your bank statements show something else, your request for assistance may be refused. If your financial problems is over, and you’re able to start making payments, you should start to save on your monthly mortgage payment. You should at least save a monthly payment you can afford.
- Planning Your Options In Case A Mod Is Not An Option
Ocwen may tell you to just apply and they’ll see what happens, but you will either be eligible for help or you are not. You must understand your qualifications before you apply. When you can prepare your application predicated on potential guidelines you may well be in a position to better present the application to Ocwen.
In many cases, you may only have the ability to re-apply if your situation changes after a denial. If you plan ahead you have an improved chance to complete the review of all your options. As the foreclosure procedure progresses, your options might become limited.
Getting through this review process fast can make you considered for other options as well, such as an Ocwen short sale or deed in lieu.