Calculation of Gross Income
If Self Employed
We were offered a Permanent Loan Modification, however the monthly payment is 40% higher than the trial payment with no explanation.
I have feed back that they used the revenues from the business rather than the Profit & Loss Statement amount and also increased our Social Security retirement income by 25%.
What do I do now?
Mortgage Loan Modification Answer:
by Loan Modification Expert - Dan North
Sounds like your lender is messing with you and figures you will just take the offered loan modification.
First off, you need to get the offered loan modification corrected, as it is based on incorrect information. You should do this in writing and send it by mail as well as email, if you have your Loss Mitigation Officers email. Send your letter to the address you are supposed to send the signed agreement to.
Clearly State What You Want
Clearly state in your communication that the wrong numbers were used for the Gross Income amount which caused the modified mortgage payment to change to a higher amount than on the trial modification payment which was 31% of the gross income. Firmly but politely ask "Please correct your records and make the correction to the permanent loan modification monthly payment so that it is 31% of my gross income."
Resend The Proof Of Income Documentation
Resend your Profit and Loss Statement as well as a copy of your last Income Tax Return and a statement of your Social Security payments. (The above should go as an attachment to your email and as an enclosure on your letter)
If You Have a CPA Use Him
To add validity you can have a CPA prepare a statement of your gross income and he can prepare the profit and loss statement as well. This gives legal validity to the documentation of your gross income as the CPA is Certifying that is your gross income and correct Profit and Loss Statement.
Now Call Your Loss Mitigation Officer
Speak to your Loss Mitigation Officer and inform him of the same information as in the letter (you can just read it to him if you like) and that you want him to correct the permanent loan modification payment to 31% of your gross income before you sign.
Speak To A Supervisor Authorized To Make Changes
If he says anything like he can not do that, ask to speak with a supervisor. Repeat the same as above with the supervisor. At any time you are told "that can not be done" ask to speak with someone who can authorize the change. Ask not to be put on hold that you will wait until that supervisor comes over or is ready to pick up the line.
Don't be rude but don't be put off, there is someone there in charge (probably in the same room) that has the authority to make that correction on the spot right over the phone.
During Any Calls Keep Excellent Phone Notes:
- Get the name of the person you are speaking to and their post title.
- Get the speakers phone number and extension number
- Do this as the very first thing each time you speak to someone new on the phone and write it all down.
- Once you have someone who is working with you get all their contact data, email, post title, phone numbers (yes more than one so that you can reach them and tell them that is why you need it)
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