Instructions for Completing Request for Loan Modification and Affidavit RMA Form
Definition and Meaning
The Request for Loan Modification and Affidavit (RMA) Form is a legal document used by individuals seeking to modify their existing mortgage terms. This form is crucial for homeowners struggling to meet their current mortgage obligations due to financial hardships. By completing this form, borrowers can present their case to the loan servicer or lender for consideration in modifying their loan terms to make repayments more manageable.
How to Complete the Form
Completing the RMA Form requires attention to detail and accurate information to facilitate the processing of your request. Follow these steps to ensure proper completion:
- Locate your loan ID number on your mortgage statement.
- Identify your loan servicer, which is the institution collecting your monthly payments.
- Fill in the borrower section with the name(s) on the mortgage.
- Provide a mailing address and a separate property address, if applicable.
- Select only one option for each question in the prompted sections.
It is essential to provide accurate information, as any discrepancies could delay the review process.
Who Should Use This Form
This form is designed for homeowners who are experiencing financial difficulties and need to modify their mortgage terms. If you have fallen behind on mortgage payments or are at risk of defaulting, you may benefit from using the RMA Form. It is suitable for borrowers who:
- Have a documented financial hardship.
- Wish to retain their home by making the mortgage more affordable.
- Are aware of the need to communicate with their lender regarding loan modifications.
Common Mistakes to Avoid When Using This Form
To ensure a smooth process when submitting the RMA Form, avoid these common mistakes:
- Incomplete Information: Ensure all required fields are fully completed.
- Incorrect Documentation: Attach relevant financial documents that support your request.
- Ignoring Instructions: Follow the specific instructions for each section carefully.
- Missing Signatures: Ensure that all necessary parties sign the form before submission.
By avoiding these pitfalls, you enhance the chances of a successful loan modification request.
What Documents You May Need Alongside This One
When submitting the RMA Form, it is helpful to include supporting documentation to substantiate your financial situation. Consider gathering the following documents:
- Recent pay stubs or proof of income.
- Tax returns for the previous year.
- Bank statements from the last two months.
- Documentation of any financial hardships such as termination letters or medical bills.
- Loan statements for all mortgages and home equity lines of credit.
Having these documents ready can help expedite the processing of your loan modification request.
Key Takeaways
The Request for Loan Modification and Affidavit Form is designed to assist homeowners experiencing financial difficulties in modifying their mortgage. Here are some key points to remember:
- Accurate completion is vital for a successful modification request.
- Include all necessary supporting documents.
- Avoid common pitfalls to streamline the process.
- This form is applicable for individuals facing hardship who wish to retain their home.
By being informed and prepared, you increase your chances of receiving the relief you need.
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FAQ
A loan modification can result in an initial drop in your credit score, but at the same time, it's going to have a far less negative impact than a foreclosure, bankruptcy or a string of late payments.If it shows up as not fulfilling the original terms of your loan, that can have a negative effect on your credit.
Be at least one regular mortgage payment behind or show that missing a payment is imminent. Provide evidence of significant financial hardship, for reasons such as:
There is no legal limit on how many modification requests you can make to your lender. The rules will vary from lender to lender and on a case-by-case basis. That said, lenders are generally more willing to grant a modification if it's the first time you're asking for one.
The loan modification underwriter will analyze and review the particular circumstances which justify a loan modification. The underwriter will evaluate and assess the borrower's financial status, current income and asset situation and ability to pay.
A loan modification is a change to the original terms of your mortgage loan. Unlike a refinance, a loan modification doesn't pay off your current mortgage and replace it with a new one.Loan term changes: If you're having trouble making your monthly payments, your lender may modify your loan and extend your term.
All modifications be in writing. All parties involved sign the modification. In appropriate cases, the modification should be recorded. The title company and attorneys be involved early in the process to properly structure the modification to protect the lender's interest at the lowest cost.
You may be able to reapply or modify your application if your reported and actual income don't match up, but many mortgage servicers will simply deny your application. Calculate a new monthly budget and cut unnecessary expenses to the bone.
An income and expenses financial worksheet. tax returns (often, two years' worth) recent pay stubs or a profit and loss statement. proof of any other income (including alimony, child support, Social Security, disability, etc.) recent bank statements, and.
How long will it take? The loan modification process typically takes 30 to 90 days, depending mostly on your lender and your ability to efficiently work through the process with your attorney or other loan modification representative.