Most people don't know how to apply for a Making Home Affordable Program such as Home Affordable Modification Program, FHA Home Affordable Modification Program (FHA-HAMP), Veteran's Administration Home Affordable Modification (VA-HAMP),
Second Lien Modification Program (2MP), Home Affordable Unemployment Program (UP) so we have written this article to help homeowners seeking loan modifications under the government program.
If your loan size is above $729,750 with all past due amounts, and your loan was not originated before January 1st, 2009, is not an owner occupied property, or if you don't have payment difficulties, then you should not apply for MHA programs as you are not eligible.
Home Affordable Modification Program,
FHA Home Affordable Modification Program (FHA-HAMP),
Veteran's Administration Home Affordable Modification (VA-HAMP),
Second Lien Modification Program (2MP),
Home Affordable Unemployment Program (UP),
The Initial Package includes:
Request Form (Request for Modification and Affidavit)
Tax Form (Form 4506T-EZ ) or (Form 4506-T)
Verification of income
Dodd-Frank Certification Form
Read more about how to complete these documents below, or click here to find out more about the Home Affordable Modification Program.
Step 1 - Complete the Request Form (Request for Modification and Affidavit)
The Request Form provides information to your mortgage servicer about your home and financial situation. You can download an instruction guide for completing the Request Form here. After you have completed the form, print two copies—one for your records and one to send to your mortgage servicer. All of the borrowers on the mortgage must sign the Request Form.
Step 2 - Complete the Tax Authorization (Form 4506T-EZ or 4506-T)
Borrowers who have filed their annual taxes on a Form 1040, should complete Tax Form 4506T-EZ. Form 4506T-EZ gives permission to your mortgage servicer to request a copy of the most recent tax return transcript you have filed with the Internal Revenue Service (IRS). Click here for instructions on completing the Form 4506T-EZ.
All other borrowers, including those who have not been required to file taxes because their income may be below the threshold amount required to file taxes or their only source of income may be non-taxable income, should complete Tax Form 4506-T. If you did not file a tax return, Form 4506-T gives permission to your mortgage servicer to verify that you did not file a tax return with the Internal Revenue Service (IRS). Click here for instructions on completing the Form 4506-T.
After you have completed the appropriate Tax Form for your case, print two copies—one for your records and one to send to your mortgage servicer. Only one taxpayer is required to sign the Tax Form.
Step 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. The simple Proof of Income Checklist will tell you what documents you need to collect if you are a wage earner, self-employed, or receive retirement income. Be sure to make copies of your income documentation and keep the originals for your records.
Step 4 - Complete the Dodd-Frank Certification Form
In accordance with the Dodd-Frank Wall Street Reform and Consumer Protection Act, homeowners who apply for the Making Home Affordable Program are required to certify that they have not been convicted of any crimes associated with a mortgage or real estate transaction within the past ten years. This form must be signed and returned with your initial packet.
Step 5 - Prepare and Send the Documents to Your Mortgage Servicer
After you complete, print, and sign the Request Form and Tax Form, send these documents, along with your proof of income, to your mortgage servicer after putting your loan number in the margins of each page, and signing your tax returns, and signing your name on any income documentation next to your loan number. You will find the correct mailing address and fax number at Contact Your Mortgage Servicer.
Step 6 - Follow up with Your Mortgage Servicer
Keep a copy for your records and make sure the servicer received your documentation in a legible format. Verify the time it takes for review and set up a calendar to follow up. Make sure to keep your servicer's name and phone numbers of who you spoke with and what you wanted from the call and what was given to you over the phone.