The real truth about Homeq modifications.
In order for them to even considered you to be eligible for a modification your loan has to be classified as high risk. That is three or more months behind on your payments. Don't bother asking if you are one to two months behind. This is true with all mortgage servicer.
If you are over ninety days behind you need to call in and request for a loan mod. If you don't, they won't bother with anything you send in because they have thousands of mods that are pre-qualified to deal with. Make sure to have your financial income and a payment ready. The first thing they will do when you ask them for a mod is interview you by going over your financials. Then they are going to ask if you have a payment ready. The payment is to extend the foreclosure date, which was sent to you after you are 45 days past due and contained information on who owns your loan, and buy you time some time from the foreclosure starting date. Homeq had negotiated with your investors to extent your foreclosure date by making just one payment. Your income will be based on your year to date net and gross income. The calculation they use is YTD divided by the previous month and current week of the pay through date of your most current check. If you are self employed prepare a profit and lost statement. Then they will go over your expenses. Don't lie here because they will check your credit history if you are pre-qualified. This will caused you to be deny by the under writer when he/she review your mod. Best way to do this is to prepare a budget before calling them. Once done they submit your financial statement into a mod calculator to see if you meet the guidelines.
Now, there are two mods that they will try to qualify you for. The first is the government sponsored hamp program. The goal of this mod is to reduced your monthly mortgage payment with taxes, insurance, and association fees to 31% of your gross income. The first thing they do is lower your interest rate to a max of 2%. If you are still over 31% then they will defer your principal up to 20% or 30%. If you are still above 31% then you are denied. Next step then is the in-house mod. This one is a little different by not by much. For the in-house, your mortgage payments needs the be the reason you are behind on your payments. This requires you have the following: interest rate hikes, death of a spouse, lost of income, or out of work but receiving unemployment for more than 9 months. Being behind because you are helping a family member will not get you a mod. If your mortgage is under 20% of your net income you will not get a mod. If you are out of work and have no income you will not get a mod. If you are over 5 months you are probably not going to get a mod. If you are pre-qualify and you don't make any payments you are probably going to be deny. They will help you but not make your payments for you or do anything to let the loan fall farther into delinquency. If approved for any mod you have 90 to complete the mod or it will be denied. You need to show proof if any income you claim and you have 30 days if a document is requested or it will be denied. You should go to the official government modification program website at www.hmpadmin.com before you call for a mod. You will find out early if you are qualified or not by using the calculation tools there If your loan is owned by a foreign bank, they usual don't participate in the hamp program. Once all the requested documents are received and verified, your loan is submitted to the mod calculator again to see if you are still eligible. This is where it's going to make or break you. If you hadn't been making any payments during the modification process and your loan becomes 5 or more month past due, you may had just wasted 3 or 4 months for nothing because you are probably going to be denied. Once denied you need to show a significant change in income or expenses before they review your account for another mod. Always remember that mods are like privileges. Your servicers don't have to do anything at all. You signed a legal binding contract that was recorded stamped, and filed and there is no lawyer, governor, judge or anyone can do anything about it
On a side note, Homeq had been bought out by Ocwen whom operates in India, so by November, your calls will be routed to India lol!!! Here's a little inside tip. If you get someone from India, tell them you want to speak to someone in the United States. They will transfer you. Good luck chucks. Hope this answered most of your questions and concerns.