What you will need to provide to the Agent/Lender
Exactly what you will need to provide your mortgage company to apply for mortgage assistance through Making Home Affordable varies somewhat from program to program and from servicer to servicer– but they all require documentation on your loan, your finances and your circumstances.
Please note that all home owners must be present at the appointment.
· Monthly mortgage statement
· Information about other mortgages on your home, if applicable
· Two most recent pay stubs for all household members contributing toward the mortgage payment*
· Last two years of tax returns
· W-2 forms
· If self-employed, the most recent quarterly or year-to-date profit and loss statement
· Documentation of income you receive from other sources (alimony, child support, social security, etc.)
· Two most recent bank statements*
· A utility bill showing homeowner name and property address
· Unemployment insurance letter, if applicable*
· Account balances and minimum monthly payments due on all of your credit cards*
· Information about your savings and other assets
· Hardship Letter: Which is a letter describing any circumstances that caused your income to be reduced or expenses to be increased (job loss, divorce, illness, etc., I can help you with this)
· RMA: Request for Mortgage Assistance (I will provide for you)
· 4506-T Tax form (I will provide for you)
* These are items that will be requested throughout the whole process and will need to be updated.
Again, you will receive paperwork from your lender throughout this process. It is extremely important you keep all mail, and give to the Agent.
What is a Hardship?
Your hardship has to be a legitimate, documentable hardship. All parties involved will be signing an Affidavit attesting to the truth of your hardship.
Examples of some legitimate hardships:
· Household income has been reduced. (reduced pay/hours, decline in business or self employment earnings, death, disability or divorce of borrower or co-borrower)
· Expenses have increased. (monthly mortgage payment reset, high medical or health care costs, uninsured losses, increased utilities or property taxes)
· Unemployment. (currently/will be receiving unemployment benefits or unemployment benefits ended less than 6 months ago)
· Monthly debt payments are excessive and are overextended with creditors. (debt includes credit cards, home equity or other debt)
· Cash reserves, including all liquid assets, are insufficient to maintain my current mortgage payment and cover basic living expenses at the same time.
These are just a few examples, you don’t have to meet all of these, or it could be something different, it just has to be legitimate and documentable.
**You should always consult with both an attorney and an accountant when considering a short sale on your house.**