PHH Corp. Loan Modification RMA Form Application Package

PHH Corp. Loan Modification Request For Mortgage Assistance (RMA)

There is a document called PHH Request for Mortgage Assistance (RMA) that you will have to submit after completing of you are applying for a Mortgage Assistance from PHH Corp. Confirming whether the paperwork is the latest is always important. A helpful tip is to consult a professional before submitting any documents. You can get help from many professionals in the market but finding the right one is important. We as a company are working to help the Consumers to help them with Mortgage Relief that is why we have put the latest form on our website.  Click here to request a call from a loan mod pro or call 888-934-3444. 

PHH Corp. Hardship Letter

PHH Corp. has a Hardship letter affidavit built into their application which states your hardships,

What is a loan modification?

One thing you have to understand is that a Loan Modification is not in any way similar to the Refinance as refinance is when you want to get a second loan to pay off the first one. While doing Loan Modification you cannot combine loans that are first mortgage or second mortgage.  Loan Modification works exactly as it sounds the terms for the loan are modified.

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

Banking industry does not has the potential to think outside the box. This is the reason that the things you can get modified for you mortgage are very limited.

Interest Rate Modification

In most cases people want to modify the interest rate. The mortgage servicer will push to reach affordability to it will be based on your income.

Loan Term Adjustment Mod

You can also get the loan term for your loan extended but this is not the ideal choice as they have been seeing adding payments at the start of the loan. It is not possible to get the loan extended for the period of your missed payments. In most of the cases the company will extend the loan back to its original length of 30 years . We have seen as much as 50 years, but as 30 years is the norm, any extension beyond is generally no more than 40. Beneficiary of the note and the limitations they set completely control this.

Principal Capitalization and Principal Reduction Modification

The lender will take the payment that you are behind on which is called as Principle Capitalization which will include 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 PHH Corp. To Get The Process Going. What is in the PHH Corp. Loan Modification Package?

This is not limited only to PHH Corp., all the lenders have the usual document 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.

The lender will balance out all the options that are available to the homeowner before approving anything. Including some ways to get the valuation done online there many ways that a valuation can be done. In a type of valuation called Broker’s Price Opinion (BPO) a broker will do the valuation. Sometimes it happens that the person doing the valuation will require interior access to the home. In every type of the valuation the person will compare the properties listed currently of sold recently. They consider the homes perceived condition, the size of the living space, the size of the lot, 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

When the investor wants to do a valuation the lender will do a valuation on the computer called Automated Valuation Module (AVM) in most of the cases but it rarely happens that the investor will hire a broker to do a valuation and even rarely happens that the investor will want an appraisal. The homeowner may be required to pay upfront fees in some of the cases for these services.

Filing Value Disputes and Variances

A mistake can be made by anybody doesn’t matter what their skills are and the value returns wrong, You may have to file a value dispute in this case. Depending on who the investor is or if it’s insured there may be different processes for filing disputes with PHH Corp. or another managing entity.

PHH Corp’s Net Present Value or NPV Process and Analysis.

The lender will decide the fate of your Loan Modification application after the value has returned. Before the submission to management, there is an auditing process and if approved, there is another auditing process the occurs before an approval letter is issued.

PHH Corp. NPV Counters

NPV is an algorithm used by the investor to calculate the value for their money and stands for Net present Value. This value highly fluctuates and changes day to day. In an NPV the investor will look at two seperate homeowners and see where they can make more money. The lender will have to see whether taking the amount owed and increasing the account balance is worth it or not as the client is already behind on the payments. 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.

PHH Corp. NPV Counters

If you want to counter the NPV it is pretty easy as the only thing you will have to do is to look at the terms and find the ones that don’t add up. You should try to figure out the feasible outcome for every point. The most typical 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

After geeting approved for the Loan Modification by PHH Corp. you will be placed on a trial payment plan. You cannot know the finalized terms that they are offering 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.

PHH Corp. Modification Complete

PHH Corp, will have a finalization process before the closing of the Loan Modification. You will receive the new term documents somewhere between the secon and third payments if you have been placed on a trial payment plan. The documents will most probably come with a prepaid post so that they can be returned 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.