Preparing a Loan Workout Packet

Submit to Lender

Homeowner Resources

Counselor, attorney, on your own

Review process takes 30-45 days

Will likely have additional requests for documentation

http://www.ahclc.org/saveyourhome.html

Preparing a Loan Workout Packet Before your Appointment

Community resources

How-to handouts

Apply for Court's counseling and mediation program

Prairie State Legal Services 888-966-7757

Final Review of Workout Packet

Where to drop off your packet

Libertyville (Monday-Friday 8AM-7PM)

1580 S. Milwaukee Ave, Suite 607

Libertyville, IL 60048

Round Lake (847-201-1521)

6 E. Main St

Round Lake Park, IL 60073

Waukegan (847-377-3552)

415 W. Washington St, Suite 106

Waukegan, IL 60085

Organize forms and documents

Verify for completeness

No outdated documents

Signed and dated

Make a copy for your files

19th Judicial Circuit Court, Lake County's

Residential Mortgage Foreclosure Mediation Program

Affordable Housing Corporation of Lake County http://www.ahclc.org/saveyourhome.html

Resolution Systems Institute

Expenses

Budget Accuracy

Housing (PITIA)

Utilities, phone, cable

Transportation

Food and household supplies

Childcare

Medical

Insurance

Entertainment and incidentals

Debt (credit card and loan payments)

Budget should match financial documentation

Need to know what you can truly afford for a modified mortgage payment

Unrealistic or inaccurate budget will cause delays

Other Documentation

Statement of Income and Expenses (Budget)

Homeowners insurance declaration page

Most recent motgage statement

Lender correspondence

Attorney correspondence

Other

What you will learn!

Monthly Breakdown

Income

Employment

Child support and maintnence

Public assistance benefits

Pension and retirement

Other (help from family, odd jobs)

Convert paycheck to monthly income figures

Average out part-time work, bonus, commission

Past utility bills

Bank statements

Credit card statements

Track expenses for a few weeks - all expenses

Gather Financial Documentation

Standard Forms

Avoiding Pitfalls

Debt

Avoid outdated documentation: pay stub, statements

Bank statements: all pages, actual statement not transaction list

Signed tax return and W2s

Provide documents for all borrowers on mortgage

Credit report

Utility statements from last month

Required Documents

Divorce and Child Support

Earned Income

Most recent 60 days of paystubs

Profit and loss statement

Last 2 years of tax returns and W2s

Rental income

Investment income

Income

Budget

Other Income

Divorce decree

Maintenance award

Child support agreements

Office of the Clerk of the Circuit Court

18 N. County Street

Waukegan, IL 60085

Other proof:

Contribution letter

Proof of receipt

Family support

Cash jobs

Remember:

60 days

Written proof

Public Assistance Income

Account Statements

Public assistance award letters

Unemployment

Social Security

SSI/disability

For Social Security and SSI/disability visit:

https://secure.ssa.gov/RIL/SiView.do

For more help, call 1-800-772-1213

(TTY 1-800-325-0778)

Monday through Friday from 7 a.m. to 7 p.m.

Must Have Actual Award Letter

Attention to details

Most recent 3 months bank statements

Checking, savings, all accounts

Retirement, pension, annuity

All pages

Standard Loan Workout Packet

Request for Modification and Affidavit (RMA)

Uniform Borrower Assistance Form (Form 710)

Statement of income and expenses

Personal financial documentation

Please start with the packet. http://www.ahclc.org/pdfs/FC_Packet_English.pdf

Finishing RMA and Form 710

For help with your packet call the Affordable Housinig Corporation of Lake County (AHC) at 847-796-8050

For questions about the program call 847-377-3552

RMA and Form 710

Avoid delays and rejections!

Review all documents for completeness and accuracy

Make sure everyone has signed and dated everything

Double check for anything wrong or missing

Hardship Letter

Information Requested

Household, loan and property information

Select ONE cause for your hardship

Hardship Letter: What to Include

Affidavit

Hardship Letter: What to Avoid

All loan holders need to sign and date

Stick to facts

Key events and impact on finances

Financial details

Reference dates

Edit and be brief

Long, emotional stories

Details that are not related to your finances

Remember the person is also reading many other letters

RMA: http://www.ct.gov/dob/lib/dob/consumer_help_nonhtml/mtgevent/rma_form.pdf

Form 710: http://www.freddiemac.com/singlefamily/service/docs/form710.pdf