We continue our review of the guidelines for the government's Home Affordable Modification program.  These series of articles are to provide you a brief insight to the lender servicer guidelines for underwriting and reviewing the HAMP guidelines.

Documenting your income

The supporting documents used to review your application for a loan modification must not be older than 90 days (3 months).  Once you send in your documents the date the lender/servicer receives them is considered the 1st day.  It is important for you to call and make sure your information was uploaded to your account.  If you are approved for the trial loan modification you will not have to refresh the income documentation during that period.

Reasonably Foreseeable or Imminent Default

If you are still current on your mortgage but are facing a possible hardship and feel you are at risk of defaulting on your loan you can apply for a loan modification under the HAMP program even if you are 1 month behind.  You must contact your lender/servicer and ask to be reviewed for the HAMP program.  Each lender/servicer is supposed to have guidelines in place to review current homeowners for the HAMP program for example the MHA handbook.  In reviewing you for a loan modification the servicer should do the following:

• Evaluate the hardship as well as the condition and circumstances
• Review your financial situation including assets, liabilities, income and other monthly obligations. (pull credit to verify debt).

All information must be documented and verified, the lender/servicer must document in its servicing system and or mortgage file the basis for their determination and that mortgage payment default is imminent and they must retain all documentation to reach this conclusion.