Although all lenders have varying requirements and may demand that a borrower submit a wide array of, the following steps will give the homeowner a pretty good idea of what to expect:
Last Statement for All Loans Securing the Property:
This is necessary so that we may verify the amount necessary to payoff the loan. If the homeowner has defaulted for an extended period of time, the payoff must reflect all default interest, penalties, attorney’s fees and escrow deficiencies.
This statement of facts describes how you got into this financial bind and makes a plea to the lender to accept less than the full amount owed. Lenders are not inhumane and can understand if you lost your job, were hospitalized, etc.
Proof of Income and Assets:
1 month of paystubs: If you are unemployed, a simple letter explaining your circumstances will be sufficient.
2 Months Bank Statements: Lenders will want to know if you have savings accounts, money market accounts, stocks or bonds, negotiable instruments, cash or other real estate or anything of tangible value. If your bank statements reflect unaccountable deposits, large cash withdrawals or an unusual number of checks, it’s probably a good idea to explain each of those line items to the lender.
Last 2 years tax returns – typically only the 1st 2 pgs of your Federal return and not your state return.
Unfortunately financial issues sometimes lead to marital issues. If the homeowner’s are in the process of filing for divorce this fact must be disclosed immediately. We want to ensure all parties feel that their rights are being protected; therefore we would be more than happy to send a copy of all correspondences to each spouse’s attorney for their review.