Beneficial Bank Loan Modification RMA Form Application Package

Beneficial Bank Loan Modification Request For Mortgage Assistance (RMA)

Applying for a loan modification with Beneficial Bank the first requirement you have to fulfill will be completing and submitting Beneficial Bank Request for Mortgage Assistance (RMA). It’s important that you use the latest paperwork. It is always better step if you check with a professional before submitting the paperwork . There are many professionals but finding the right one is very crucial. That’s why we put the latest paperwork we could find online; to help you. That is what we do as we are a company working to help our customers with Mortgage relief.  Click here to request a call from a loan mod pro or call 888-934-3444. 

Beneficial Bank Hardship Letter

Built into their application Beneficial Bank have a hardship affidavit citing your hardship,

What is a loan modification?

First of all we have to understand what is not a Loan Modification. Getting a new loan to pay off your old loans or combining loans is called a refinance. You cannot combine loans, such as a first and a second mortgage, when you are completing a loan modification. A loan modification is basically exactly as it sounds. We will work with you and the lender to get the terms of the loan changed.

What terms can I change on my mortgage with a loan modification?

Thinking out side the box is not what banking industry does. So the things that you can change and how you can change them are highly limited.

Interest Rate Modification

The change in interest rate is what most people want. Although this is also important but this is not the only thing can be done to change the payment. The mortgage servicer will push to reach affordability to it will be based on your income.

Loan Term Adjustment Mod

The other thing they may change is the life of the loan but some people complain that they add payments at the back of the loan. They don’t extend the loan by the term of your missed payments. In most of the cases they extend the loan back again to 30 years or even more. We have seen as much as 50 years, but as 30 years is the norm, any extension beyond is generally no more than 40. This is completely controlled by the beneficiary of the note and the limitations they set.

Principal Capitalization and Principal Reduction Modification

When they take the amount you owe them that you have missed then that is called Principal Capitalization this includes any past due payment, interest, and fees later adding them to the outstanding balance of what is owed. In rare cases that are generally dictated by the amount of perceived equity in the home (or lack there of) the investor on the loan may be willing to take a reduction on the principal owed.

Getting Your Forms Submitted To Beneficial Bank To Get The Process Going. What is in the Beneficial Bank Loan Modification Package?

These requirements are not limited to Beneficial Bank because usually all the lenders have the same requirements. You will have to provide your financial information to you servicer such as a monthly budget, your tax returns for the last two years along with a 4506t to show the returns were actually filed, pay stubs or proof of income like a profit and loss, bank statements, reason for requiring to do a loan modification, and a hardship letter.

Getting The Right Value Goes A Long Way.

To complete a loan modification successfully the lender will balance out all the options available to the homeowner. One of the way is to check whether the value is acceptable or not. A value including the ones in which the valuation is done online can be completed in different ways. Sometimes a value is completed by a real estate agent, also known as a Broker’s Price Opinion (BPO), In this type the broker compares the properties in the area and may also want to do an interior valuation in which case they will need access to the home and in some cases a drive by or external value is completed. It does not matter what type of valuation is, they will compare the properties currently listed but the one more important are the ones sold between the previous 3 to 6 months. They consider the homes perceived condition, the size of the lot, the size of the living space, how many stories it has and whether or not it has a pool. They will also consider market conditions and how fast homes are selling in the area. There are many factors they take into consideration.

Loan Modification Appraisal Values

In some of the cases the real investor for which Beneficial Bank is working will require to complete a valuation before approving any terms of loan modification. For this part the lender will do a computer based valuation called an Automated Valuation Module (AVM). It happens very rarely that the lender will hire a broker for Broker’s Price Opinion (BPO) due to cost preventions. In even rarer cases the beneficicary will pay for a by a licensed appraiser. The homeowner may be required to pay upfront fees in some of the cases for these services.

Filing Value Disputes and Variances

It can often happen that value returns too wrong, It can be either too high or too low. This can happen to anyone whether you are a professional of a rookie may not matter. You may have to deal with a value dispute. Depending on who the investor is or if it’s insured there may be different processes for filing disputes with Beneficial Bank or another managing entity.

Beneficial Bank’s Net Present Value or NPV Process and Analysis.

After a valuation has been completed and it has returned then the lender will decide whether you qualify for the loan modification or not and to forward your file or not. Usually there is an auditing process before the submission to management and if approved there is often another auditing process the occurs before an approval letter is issued.

Beneficial Bank NPV Counters

NPV stands for Net Present Value. NPV is basically an algorithm so the lender can get the value for his money. This isn’t a stable value either. It changes from day to day. The process of looking at two separate borrowers and checking where they can make more money is known as NPV. In most of the cases the borrower is behind on his/her payment so the lender will have to decide whether to take the amount owed and increase their balance is even worth it or not. Homeowners have to know that when the numbers don’t add up for the investor that is when they are most likely to get declined.

Beneficial Bank NPV Counters

There best way to counter the NPV is to look at the points that don’t make sense and attack those parts. You should look at each point and imagine what would be the likely output. Mostly there are incorrect income figures but it could go beyond that to things like the property’s perceived value and even in some cases the consumers credit report.

Three Payment Plan

In most of the cases if you are able to get approval for the loan modification you will be put on 3 month trial payment plan. You will not know what the finalized terms will be that they are offering you but the final payment should be inline with what you will be paying for the mortgage at least at the onset of the new plan.

Beneficial Bank Modification Complete

There is a finalization process when the loan modification is being completed with Beneficial Bank.The finalized Loan Modification documents will be sent out somewhere between second and third trial payment if you are on trial payments. They usually come with a prepaid package to return the documents to the lender. Once the documents are returned and the loan modification goes through the final audits with underwriting the master loan documents are amended to show the new terms of the loan.