In any Resolution with your Lender/Servicing Agent, they will want to review and verify your Hardship and/or Financial Position.
If you are working with a Lender on any resolution (Short Term Resolutions, Long Term Resolutions or Default Liquidation), your Lender will want to VALIDATE that the decision being made is in the best interest of everyone involved. There may be options for you that you don't know about. In addition, there are a small number of people that will try to take advantage of the system just to get a lower payment.
Each Lender has their own basic form but for the most part, they are all similar in that they ask the same questions. The main difference usually is the form itself. Here is what the general request will typically require you to submit:
If you click on the above links, it will take you to a page where you can get more information about each individual item. More importantly, there are some guidelines as to what to do in special circumstances. For example, what if you don't have a Bank Account or what if you are Unemployed or what if you have not filed for taxes etc.
Your workout option will be approved/denied/adjusted based on the information that you send so it is important to be accurate. If you make a mistake, the documents can be amended and resent with a simple letter explaining the mistakes so don’t worry if you make a mistake.
Two very important notes:
- If you have filed a Bankruptcy then it may be a violation of the Federal Bankruptcy Laws for the Bank to request such information from you (the reason is because #2 below). If this is the case, first remind the Bank that you have filed BK and do they still want the information (it might just be an error on their part as they ask EVERYONE to send Financials when considering a workout). If they do still want the information, you should consult with your attorney before providing any information.
- Anything you send to the bank CAN be used for the purpose of collecting the debt. In other words, if you send in your package and things don't work out, the bank can later use that information to pursue you for any debt that goes unpaid.