SPS Loan Modification RMA Form Application Package

Select Portfolio Loan Modification Request For Mortgage Assistance (RMA)

If you applying for a loan modification with Select Portfolio Home the first requirement will be completing and submitting Select Portfolio Request for Mortgage Assistance (RMA). It is necessary to use the paperwork that is latest. You should consult with a professional or your lender before submitting the paperwork. There are many professionals with which you can work but finding the right one is 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. 

Select Portfolio Hardship Letter

Select Portfolio has a Hardship letter affidavit built into their application which states your hardships,

Select Portfolio What is a loan modification?

Mortgage Loan Modification is different from refinance as when you want to get a second loan to pay off your first loan it will be called as Refinance. In Loan Modification process you cannot combine loans that are first mortgage or second mortgage. We do exactly what it looks like, we will work with you and your lender to get the terms of the loan modified.

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

There is a reason that hugely limits the things you can get modified on your mortgage. The reason is that Banking industry does not think outside the box.

Interest Rate Modification

The request which we get the most is that people want to change the interest rate. The mortgage servicer will push to reach affordability to it will be based on your income.

Loan Term Adjustment Mod

The total life of the loan can also be adjusted but this will not work in the same way as they have been seen adding payments to the back of the loan. The c ompany will extend the loan back to its original length of 30 years as you cannot get the loan extended for the period of your missed payments and We have seen as much as 50 years in some cases, but 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 Select Portfolio To Get The Process Going. What is in the Select Portfolio Loan Modification Package?

This is not limited only to Select Portfolio and 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.

During Loan Modification process, the lender will want to balance out all the options available to the homeowner. One option available for lender will be to check if the value is acceptable. A valuation can be done in many ways including some ways in which the value is obtained online. The broker compares the properties in the area such a value is completed by a real estate agent. In some of the cases the broker may want access to the home to do an interior valuation. In some cases only a drive by is enough.It doesn’t matter which type of valuation they are doing, the person making the valuation will compare properties that are currently listed and which have been 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

Sometimes the investor will do valuation. The lender will do a computer based valuation also sometimes known as Automated Valuation Module (AVM). Due to the costs, it is very rare case that an investor will hire a broker to do a valuation. The cases in which the investor hires and appraiser are even rarer. The homeowner may be required to pay upfront fees in some of the cases for these services.

Filing Value Disputes and Variances

Mistakes happen and it doesn’t matter if a person is a professional or a layman and the value may returns too high or too low, 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 Select Portfolio or another managing entity.

Select Portfolio’s Net Present Value or NPV Process and Analysis.

After the value has returned the lender will have to decide to either qualify you for the Loan Modification 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.

Select Portfolio NPV Counters

NPV stands for Net Present Value. It is an algorithm that the investor uses to get the value for their money. This is also not a stable value. It changes from day to day. In an NPV the investor will look at two separate 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.

Select Portfolio NPV Counters

If you have to counter the NPV decline just look at the parts that don’t make sense and attack those parts. Look at each point and try to figure out what the feasible output should be. 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

Even if you get approved for loan modification from Select Portfolio you will be put on the trial payment plan for three months. You will not know what the finalized conditions 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.

Select Portfolio Modification Complete

Before the completion of the Loan Modification process there is a finalization process. If you have been placed on trial payment plan then the finalized loan documents will be sent out somewhere between second and third payment. 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.