Do I Qualify?
Pre-Qualification Application Process
Thoroughly filling out the Pre-Qualification Application will help to disclose the MONTHLY MORTGAGE (rate, term, what is applied to principal (if any), interest payment, mortgage insurance, if applicable).
The form will also itemize EXPENSES such as Secured Debt - cars, recreational equipment, etc. and Unsecured Debt - credit cards, installment/ personal loans, medical bills, student loans, tax liens, etc. plus notation of outstanding balances. We will then need you to break down expenses paid out as Cost of Living - utilities, cable, food, child care, spousal support and day-to-day living expenses.
We will verify and document your INCOME from all sources, including boarders, child or spousal support, rent, unemployment benefits, SSI, disability income, annuities, etc. On the Pre-Qualification Application we will need both gross and net income noted correctly.
If employed as a W-2 employee, it would be helpful to provide your pay stubs from the previous 3 months (we will need this to submit to the lender once we accept your case). If you choose to wait to provide the documentation until after contracting with Strategic Debt Resolutions (SDR), make sure the application has been filled out correctly. It is important we understand the difference between Gross Income from your Net Income (take home pay), so that 401K distributions and re-payment programs, garnishments, medical insurance deductions, taxes, etc. are taken into consideration.
If self-employed, we will need you to fill out a Profit and Loss Statement (P & L) showing each of the last 3 months of sales, revenues, commissions, etc. and deducting business related expenses to estimate your net income before taxes or after taxes (only if available). If you need assistance with this analysis, we can provide a (P & L) format and any other support you may need. It would be helpful to provide your P & L at pre-qualification for our review, or you can choose to give us your best estimate and wait until after contracting with SDR to provide your financials.
We will then deduct your Mortgage(s) and related expenses, monthly minimum Installment payments and Cost of Living expenses to calculate how far you are above or underwater each month.
If you have other investment properties, vacant land or a second home, we will need the mortgage statement(s) and all other related expenses, such as property taxes, hazard insurance, HOA dues, utilities not paid by any tenant, etc. On the Pre-Qualification Application we will need all these costs noted as well as Rent(s) received.
One of the most common issues that the lenders will be looking for is if the monthly Mortgage Payment (added with the Property Taxes, Hazard Insurance, and if applicable, Homeowner’s Association Dues), is 31% greater than your gross income(s). If the payment amount exceeds 31%, then the banks will automatically be responsive to modifying the monthly payment amount.
If your situation is not easily identifiable as a strong candidate for modification, we will gather additional information to determine if we can succeed. Strategic Debt Resolutions will do as much financial analysis as needed. We may have you fill out and sign a 3rd Party Authorization form that allows SDR permission to discuss possibilities and receptivity with your lender before we accept and proceed with your case.
Part of the Pre-Qualification Application Process is an interview that will address the following areas:
What are the short and long term goals for the property?
If a loan modification was attempted by you or another company, what happened?
Were you denied and what reason was given?
Did you succeed to some degree and were offered a trial payment period?
Did you default at any point in making the modification payments you were offered?
Did your situation change in some way during the process to cause you to seek a better reduction in your payments in order to sustain the modification terms for the long-term?
We will need a copy of all paperwork you submitted to the lender and all modification correspondence they presented to you in order for us to understand the chronological steps and challenges you faced in trying to secure a workable solution.
