The lenders are only looking for one thing when we submit the client's modification request. They are looking for a hardship. But at the end of the day, if they decide to grant the client's request for a loan modification, all they really want to know is...

Can the client afford the new payments?

Yes! The most important thing to prove to the lender is that the borrower cannot afford their current payment, but show that they can afford their new payment.

For a modification, borrowers can qualify based on the documental TOTAL HOUSEHOLD NET INCOME. The borrowers can count income from almost all sources, i.e., Grandma's SSI, child day care services, 2nd job, etc. (so long as it can be proved). This must be proven in the form of bank statements, 1099's, W2's, profit and loss statements, etc. as outlined in the submission paperwork you will have. Also, if only the wife or husband is on the original loan, the other spouse's income can count so long as it is documentable.

After gathering all of your documents, add up all monthly net income from all household sources and this is your new qualifying income. Now to calculate a qualifying monthly mortgage payment, use the benchmark fully amortizing 5% rate on whatever the new balance might be, counting arrearages if they are added back into the loan. This should give you a rough idea of what the borrower can afford.

You will then present this new monthly mortgage payment to your homeowner and ask, "Mr. & Mrs. Homeowners, can you afford to stay in your home IF this is your new payment?" The purpose to prequalifying is to give them a general idea if a modification is an option for them. (NEVER PROMISE your borrower an exact rate or payment) If the answer is 'yes', then proceed with all of the other qualifying, documentation, and submission requirements as detailed on the submission forms. If they say "no", but it is close, there is a possibility there is a miscalculation so double check if you've accounted for all income and expenses.

If they payment is just too high, then they are probably not an appropriate candidate for a modification. However, there are many other options out there, so we need to just find the right program for borrower.

• How did the entire loan process go for you?
• Was there any misrepresentation by the broker/lender?
• Did anything change during the processing of your loan?
• Did the mortgage fees seem reasonable to you?
• Did you ultimately get the loan you were expecting?
• Did the signing process go as you had expected?
• Did you receive copies of your loan documents at signing?
• Did the closing agent point out the Right to Cancel forms and leave you copies?

***Please note: this is only a general qualifying exercise. ***

United Processing Center has an all access, user-friendly online tracking system which keeps you and the borrower updated 24/7.

Under the Obama Plan, if your borrowers can no longer afford to make their monthly loan payments, then they may qualify for a loan modification to make their monthly mortgage payment more affordable. There are an estimated 7-9 MILLION borrowers who are current, but having difficulty making their payments and borrowers who have already missed one or more payments may be eligible.