- Summary
Borrower eligibility is based on meeting specific criteria including:
- Borrower is delinquent on their mortgage or faces imminent risk of default
- Property is occupied as borrower's primary residence
- Mortgage was originated on or before Jan. 1, 2009 and unpaid principal balance must be no greater than $729,750 for one-unit properties
After determining a borrower's eligibility, the bank will take a series of steps to adjust the monthly mortgage payment to 31% of a borrower's total pretax monthly income:
- First, reduce the interest rate to as low as 2%
- Next, if necessary, extend the loan term to 40 years
- Finally, if necessary, forbear (defer) a portion of the principal until the loan is paid off and waive interest on the deferred amount
The attached documents are required to be completed, in their entirety, as well as:
- 2 current pay stubs
- 2 current bank statements (include all pages)
- Retirement accounts
- Your latest SIGNED tax returns (including all schedules, W2's & 1099s)
- A letter explaining your hardship
For additional income such as bonuses, commissions, fees, housing allowances, tips and overtime, you must include a letter from your employer stating that the income will in all probability continue.
Additional documents that may be required:
If you are self-employed, you must also include the following:
The most recent quarterly or year-to-date profit & loss statement for each borrower. If you elect to use alimony or child support income to qualify, you must also send the following:
- Photocopies of the divorce decree, separation agreement or other type of legal written agreement or court decree that provides for the payment of alimony or child support and states the amount of the award and the period of time over which it will be received.
If you have other income such as social security, disability or death benefits, pension, public assistance, or unemployment you must also send the following:
- Evidence of (1) the amount and frequency of the benefits such as letters, exhibits, a disability policy or benefits statement from the provider, and (2) receipt of payment, such as copies of the two most recent bank statements showing deposit amounts.
If you have rental income, please also send the following:
- Copies of all pages of most recent two years of signed federal income tax returns and Schedule E--Supplemental Income and Loss
For questions concerning the process or completing the HAMP paperwork, please call Laura Jones @ 800-422-3641, ext. 186.
Completed HAMP documents and documentation should be sent to:
Sutton Bank
c/o Janet Carter
PO Box 505
Attica, OH 44807
