APPLICATION INSTRUCTIONS

Transcription

1 APPLICATION INSTRUCTIONS Thank you for submitting a pre-application to Underwater Georgia! Your pre-application number has been selected to allow submission of a full application. Please read this information carefully: 1. Do not delay start the application process today! We recommend the completed application package be received in our office as soon as possible. Application submission does not guarantee assistance will be provided. This is a limited funded program. Due to the limited funding, not all eligible applicants will receive assistance. Once underwater assistance funds are exhausted, the program will close. Applicants are encouraged to read the application instructions and submission checklist carefully and submit the application and all required documents as soon as possible. Property values may increase. Properties that are not significantly underwater cannot be considered for assistance. The property valuation is based on third party information at the time of the application review. Applicants, the mortgage, and the property must meet all eligibility requirements to be considered for assistance. See FAQ and Eligibility Requirements at for more information. 2. Tax Return Transcripts are required supporting documentation and should be ordered from the IRS immediately. Ordering instructions are provided on page 3, Step by Step #9. 3. Continue to pay your mortgage and keep payments current. 4. HomeSafe Georgia will make reasonable accommodations upon request. If you do not have a computer or need assistance in completing your application, let us know immediately. 5. Step-by-Step instructions have been provided to help you submit a complete application package. It is extremely important to follow the instructions. If you do not understand what is being requested, or if you have questions about the process, please contact Customer Service: (press 2) or via at underwatergeorgia@dca.ga.gov. 6. Every homeowner and borrower legally bound to the home, as well as the spouse of the residing homeowner or borrower, is considered an applicant and must participate in the application process from start to finish. This includes completing and signing the necessary forms and providing applicable supporting documents, plus attending closing if approved. Any homeowner or borrower not residing in the home will be required to provide acceptable, verifiable proof of other residency. A credit report (without a credit score) will be pulled on all applicants to help verify mortgages, payment history, and public records such as bankruptcy and tax liens. A homeowner is a person who signed the Warranty Deed or Security Deed at closing, or was added later as a homeowner through a quit claim deed. Recent removal of a homeowner from the property via a quit claim may result in ineligibility, unless the quit claim was as a result of a death or court order (divorce). A borrower is a person who is on the Mortgage Note and is financially obligated on the mortgage. 1

2 Step-by-step Instructions Please note: Underwater Georgia is a HomeSafe Georgia program. If you, your spouse, or a co-homeowner or coborrower received HomeSafe Georgia assistance, regardless of the amount of assistance or the program under which it was received, no further assistance can be provided. Underwater Georgia s website allows only for a pre-application and review of program information. You will be using the HomeSafe Georgia application with some changes as listed in these instructions, to create an Underwater Georgia application. 1. Start an online application at Click the Start or Continue your Application button, then New Applicants Begin Here at lower left. Ignore any Underwater Georgia link. The online application takes about an hour, but will be faster if you have your mortgage and income information ready before you begin. Only one HomeSafe Georgia online application is allowed. (Your Underwater Georgia pre-application was not an application.) If you or your spouse (if applicable) started an online application for other HomeSafe Georgia programs (never submitted application package or the application was deemed ineligible or withdrawn), reopen it- do not try to start a new application. If you do not remember your password, click Forgot Password. Contact Customer Service if you forgot your login or have any problems. If you do not have access to a computer or need help with the application, contact Customer Service. 2. Your user ID will be your address and you will create a password. Both your user ID and the password are case sensitive. will be the primary form of contact during the application process. If you do not use and choose not to create an account, you can use our template to create a user ID. By using this template, we will recognize that you don t use and it will help us communicate with you by phone or mail. The user ID template for non- users is: lastname.firstnamestreet#@xxxx.com. For example, John Smith who lives on 123 Main Street and doesn t use would enter smith.john123@xxxx.com as his user ID. 3. If you see a pop-up notice about Underwater Georgia and a limited funds statement, click on the box I understand which will remove the pop up from your screen and allow you to continue with the application; DO NOT click on the Underwater Georgia link. 4. Information for only two applicants only can be entered online. If there are more than two applicants, request a copy of a blank intake form for the additional applicants to manually complete for submission. 5. Online application: Your answers to the questions regarding your name(s), property, mortgage, and employment will populate the Intake Form (application form). Select Underwater for your hardship. Some questions may not apply. Example: For which program are you interested in? select I m not sure as the underwater program is not listed. Financial Worksheet. Income from all residing applicants (homeowners, borrowers, and spouse) must be listed. Income from homeowners and borrowers not living in the home does not have to be included on the form if verifiable proof of other residency is provided. Hardship Affidavit. Type My home is underwater, then a sentence or two such as the amount owed versus the estimated value of your home, and the affect (if any) that it has caused in regard to refinance, selling the home, community, etc. If you are delinquent 1 to 2 months, you can provide a comment or two including regarding the delinquency and if you are making payments now. 2

3 Underwater Georgia is a program for homeowners whose only hardship is that the mortgage is underwater. Any current delinquency should be from a onetime hardship that has passed. The mortgage cannot exceed 2 months delinquency at any time from application review to funding (if approved). If you are more than 2 months delinquent or struggling to make your mortgage payments, please review other HomeSafe Georgia programs, or speak with your lender or a HUD counselor to see what other options may be available to you. 6. Continue the online application to the end Step 7; download and print. You may need to minimize the screen view to see the green Download button at bottom left. If you do not have a printer, you can save the download as a PDF for your records. Contact Customer Service, and someone will mail you the printed application. 7. The HomeSafe Georgia downloaded application prints 21 pages. Here is where you will start making changes to the HomeSafe Georgia application to create the Underwater Georgia application. You will only need 9 of the 21 pages (listed as Keep). The remove pages should not be submitted with the application package. From the downloaded pages (in order): Remove Dear Homeowner. (1 page) Remove Important Information Regarding Your Application. (3 pages) Remove the Submission Checklist. (2 pages) Remove the Letter of Transmittal. (1 page) Keep the Intake Form. (2 pages) The purchase date must be correctly listed and the question regarding owning other property must be answered. It must be signed by all applicants. Keep the Financial Worksheet. (1 page) It must be signed by all applicants living in home. Remove the Hardship Letter. (1 page) Remove the 4506T form. (1 page) Keep the Third Party Authorization. (1 page) It must be signed by all borrowers. Keep the Authorization to Obtain a Credit Report. (1 page) It must be signed by all applicants. Remove the Privacy Policy. (1 page) (Keep for your records.) Keep the Hardship Affidavit. (3 pages numbered) It must be signed by all applicants. Keep the Residency Pre-Affidavit. (1 page) It must be signed by all applicants. Remove the Medical Hardship Information and Authorization to Provide Medical Information. (2 pages). 8. Underwater Georgia Instructions and Forms Included in the pages that follow (7-10) are four Underwater Georgia forms: o Underwater Georgia Transmittal to use as a cover sheet when submitting your application. o Underwater Application Submission Checklist to help you put the forms in order and have a complete application package. o Statement of Liquid Assets, to list financial (bank, credit union, money market, etc.) information. o Application and Supporting Documentation Affidavit, to attest to the accuracy of the information provided. 9. Checklist for Application Submission Requirements (see Underwater Application Submission Checklist). Underwater Georgia Transmittal form, which must be completed and be Page 1 of the application package. Failure to use the form may result in misrouting of the application and withdrawal. Online application: the 9 required pages from the HomeSafe Georgia application as noted as Keep above, must be completed and signed by the applicable parties where indicated. Mortgage statement: a copy of the most recent statement for all mortgages on the home. State issued identification: copy of ID to follow the Residency Pre-Affidavit form, for all applicants. 3

4 2015 Full Tax Return Transcript. A transcript is not interchangeable with the tax return; transcripts must be ordered through the IRS by the applicant(s). o A Full Tax Return Transcript is required for each homeowner, borrower, or spouse, regardless of residency. If self-employed, the business tax transcript is also required. o If 2015 income did not require a tax return to be filed, request a Wage and Income Summary Transcript from the IRS. o Obtain the appropriate tax transcript(s) through the IRS. Allow two weeks for mail delivery. To order by phone, call and follow the prompts. To view online: Prior-Year-Tax-Return. o Applications are subject to withdrawal if tax returns are submitted instead of transcripts. If the IRS cannot provide you with your tax transcript, you must provide an explanation (or IRS letter) and have your 2015 tax return stamped by the IRS. Call Customer Service if you have any questions. o Note: the transcripts are often printed front and back. If you plan to fax your application, make a copy of the back pages and include within the transcript so that all pages are submitted in order. Statement of Liquid Assets: list of asset account information for all homeowners, borrowers, and spouses living in the home. If an applicant s name is on any account, and the applicant can legally use the funds in the account, the account must be included on the form. Copies of the form can be made if needed. Application & Supporting Documents Affidavit: signed by all homeowners, borrowers, and spouse. 10. Checklist of Additional Documents for Applicants. Review these additional items and provide them in the application package if they apply to any homeowner, borrower, or spouse who lives in the home. Other documentation may be required upon review. Mortgage/purchase validation. A credit report will be pulled and used as one form of documentation to validate the purchase date. If the mortgage was refinanced on/after January 1, 2012, provide a letter with date of refinance and the name of the previous mortgage lender/servicer. Explanation if state issued identification does not have the person s current address. Explanation and documentation for any document that contains an address that is not the property address. For a PO Box, provide a copy of the application or post office bill. Documentation for recent ( ) change in marital status (marriage, divorce, death of spouse, etc.) Documentation of recent ( ) dismissal or discharge of bankruptcy. (Cannot be in active bankruptcy.) Proof of active payment plan for any tax lien. (Lien balance total cannot exceed 10,000). Higher tax liens or failure to have an active payment plan in place by any applicant is a disqualifier. If the 1 st mortgage is over 30 days past due: o Explanation and documentation to show why the mortgage is past due and when the delinquency started. Note: the mortgage(s) cannot be more than 2 months delinquent at any time from preapplication to closing (if approved). o If the mortgage is greater than 30 days delinquent but less than 90 days delinquent (behind 1-2 months), proof of affordability is required. Submit documentation of all household income (residing homeowner/borrower/spouse) including: Last 30 days of paystubs, YTD Profit & Loss Statement for self-employed Social Security (including dependents), VA, retirement fund, etc. Documentation of Alimony, Child Support, Rent, etc. 11. Checklist of Additional Documents for Non-Residing Applicants. Required if Applicable. Review these additional items, and provide them in the application package if they apply to any homeowner, borrower, or spouse that does not live in home: Documentation of recent ( ) dismissal or discharge of bankruptcy. Proof of active payment plan for any tax lien. (Lien balance total cannot exceed 10,000) Explanation if any state issued identification does not have the person s current address. 4

5 Proof of verifiable residency. Requires two items that have same name and address, such as a state issued ID, tax transcript, apartment lease/mortgage statement, utility bill, paystub, etc. State residency requirements may apply. 12. Submission of the Underwater Georgia Application. Gather all applicable items listed on the Underwater Application Submission Checklist. Verify that all application documents are complete and signed as applicable. Verify that you have collected all supporting documentation required and that all documents are legible. Provide an explanation letter where needed. Complete the Underwater Georgia Application Transmittal form (including your pre-application number if known) and place on top. Make a copy of the full application package for your records if you are mailing/delivering the application package. Fax, mail, or deliver the application package (fax number and address are located on the transmittal form). We recommend you maintain a copy of your receipt or tracking number for reference. Important Information to Know 1. Within ten (10) days of receipt of your Underwater Georgia application package, you will receive either an notification or be contacted by a HomeSafe Georgia representative. The application package should be complete at submission. 2. Additional documentation may be required and all documentation is subject to verification. Items that cannot be verified may result in ineligibility. If any additional information is needed, it must be provided timely for the application to continue, as applications cannot be held open for processing. Applicants interested in consideration for underwater assistance must make the application a priority. Failure to submit a complete application package or submit requested items timely may require the application to be set aside until all other applications have been processed. 3. One of the following application dispositions will be assigned: Approved. There are three steps of approval: processor approval (basic documentation has been submitted), underwriter approval (eligibility confirmed), and pre-closing approval (clear title and lender/servicer confirmation and acceptance). Estimated time is 10 weeks. After pre-closing approval, funds will be reserved and an Approval Letter will be issued. The applicant(s) will have 30 days to close on the loan. Withdrawn. A Notice of Withdrawal will be issued at the applicant s request, or for applications that have not cleared underwriting at the time of exhaustion of funds. Denied. A Statement of Ineligibility or Denial will be issued if an applicant, mortgage, or property did not meet all the eligibility requirements. 4. Homeowners approved for assistance will be eligible for 5,000 to 50,000 in a onetime payment to their lender. Assistance is determined by the loan to value (mortgage balance/property value) at the time of review. The property must have a loan to value of at least 110% prior to assistance, and with assistance, will have a loan to value of 100% to 125%. Note: property tax records are often not a reflection of true property value. 5. Funds will be provided as a principal reduction payment, also known as a curtailment, and have no effect on the mortgage payment. The lender may work with you to re-amortize your loan which could lower your mortgage payment, but it is not a requirement that they do so. You should contact your lender directly to review options regarding re-amortization or refinance. 5

6 6. Assistance is provided in the form of a no interest, forgivable loan and a closing attorney is required to handle the paperwork. There are no application fees or closing costs involved. A lien will be placed against the home for the amount of assistance provided. Annually, starting one year and 30 days from the payment, 20% of the principal balance will be forgiven. After the 5 year forgiveness period, the lien will be canceled. HomeSafe Georgia will subordinate to a no cash refinance during the forgiveness period. If you wish to sell your home during the forgiveness period, contact us. 7. Remedies for Denied and Withdrawn Applications: Denial. We must confirm eligibility, which can include requirements from pre-application submission through closing. If the applicant believes the denial was in error, a written request for appeal must be submitted within 30 days of the notification. The request must include an explanation and documentation of the reason why the decision is believed to be in error. Eligibility requirements themselves cannot be disputed. An appeal does not guarantee that the application will continue or that assistance will be provided. o An applicant may request that his/her application be put on a wait list if there is a situation in which a cited ineligibility can be overcome. The application wait list, if funds are still available, will be reviewed after all initial pre-applications have been reviewed. Withdrawal. Applications can be withdrawn at the applicant s request. All applications still in the queue that have not received underwriting approval at time of exhaustion of funds will receive a Notice of Withdrawal. o An applicant who requests withdrawal can be put on a wait list if they wish to be considered at a later time. The application wait list, if funds are still available, will be reviewed after all initial preapplications have been reviewed. Questions? Contact Customer Service at Si usted tiene preguntas o necesita ayuda con una aplicación, por favor comuníquese con nosotros al o al número gratuito y presione (4) cuatro. HomeSafe Georgia will make reasonable accommodations for applicants upon request. Please contact Customer Service to request assistance

7 UNDERWATER GEORGIA APPLICATION TRANSMITTAL DATE: TO: HOMESAFE GEORGIA- UNDERWATER GEORGIA SENT VIA: FAX: (toll free ) NUMBER PAGES: MAIL or DELIVERY: 60 Executive Park South, NE, Atlanta, GA SUBJECT: Request for UNDERWATER Assistance from HomeSafe Georgia. FROM: PHONE #: PRE-APPLICATION NUMBER*: *If you do not know your pre-application confirmation number, leave this blank. I am / We are submitting this application for consideration of principal reduction (underwater) assistance. I/We understand the importance of maintaining correspondence while our application is being reviewed, including providing documentation or answering inquiries timely to prevent withdrawal of the application. I/We further understand that assistance is based on eligibility and funds being available at the time of underwriting approval. Print Name Signature Date Print Name Signature Date 7

8 UNDERWATER APPLICATION SUBMISSION CHECKLIST For faster processing and to assist in making sure your application package is complete, please put documentation in the order listed below and include a letter of explanation where needed. Make sure that all documents are complete and signed by all applicable parties. Additional copies of the forms can be submitted or additional signatures added on forms as needed. Sign documents- do not use an electronic signature. Required for All Applications: Underwater Georgia Transmittal Cover Letter (1 page) - Signed by all residing (living in home) applicants. Intake Form (2 pages) - Signed by all applicants. Hardship Affidavit (3 pages) - Signed by all applicants. Financial Worksheet (1 page) - Signed by all residing applicants. Copy of most recent Mortgage Statement (all mortgages) 2015 Tax Transcripts- Provided by all applicants. Statement of Liquid Assets- Completed and signed by all residing applicants. Authorization to Obtain a Credit Report (1 page) - Signed by all applicants. Third Party Authorization (1 page) - Signed by all borrowers. Residency Pre-Affidavit (1 page) - Signed by all applicants. Copy of State Issued ID- Provided by all applicants. Application & Supporting Documentation Affidavit- Signed by all applicants. Include if Applicable: Documentation for mortgage not on credit report or for a refinance if on/after 1/1/2012 (Residing applicant) Explanation/Documentation for use of any Address on any document that is not the Address of the Property (Residing applicants) Explanation for Incorrect Address on any State ID (All applicants) Documentation of Other Verifiable Residency- (Non-residing applicants) Business YTD P&L (Residing applicants) Documentation for recent change of Marital Status (Residing applicants) If Mortgage is Past Due- Explanation and Income Documentation (Residing applicants) Recent Bankruptcy Dismissal/Discharge (All applicants) If Tax Lien- Payment Plan (All applicants) 8

9 STATEMENT OF LIQUID ASSETS List each checking, savings, and money market account held by a bank, credit union, or other financial institution in your name (individual or joint account) for which you legally have access to funds. Business owners who use their personal checking account for business activity should provide an explanation letter; additional documentation may be required. DO NOT include 401(k), Roth IRA, IRA or other federally recognized retirement accounts on this list. Assets may be excluded for applicants not residing in the home if other verifiable residency has been established and documentation has been provided with the application. Name of Financial Institution Name(s) on Account Last 4 Digits of Account Number Type of Account (Savings, checking, etc.) Statement End Date Statement End Balance Total Liquid Assets Name: Signature: Date: Name: Signature: Date: 9

10 APPLICATION & SUPPORTING DOCUMENTATION AFFIDAVIT WARNING: SECTION 1010 OF TITLE 18 U.S.C., PROVIDES: "WHOEVER, FOR THE PURPOSE OF..., INFLUENCES SUCH ADMINISTRATION..., MAKES, PASSES, UTTERS, OR PUBLISHES ANY STATEMENT, KNOWING THE SAME TO BE FALSE..., SHALL BE FINED BUT NOT MORE THAN 5,000 OR IMPRISONED NOT MORE THAN YEARS, OR BOTH." I am/we are providing an application package for consideration for principal curtailment (underwater assistance) through HomeSafe Georgia. I/We hereby state that the information provided in the application and supporting documents is correct and a true statement of occupancy, home ownership, mortgage obligation, marital status, income, and assets. I/We further understand that all information provided is subject to verification and that additional documentation may be required to validate eligibility. I/We will provide any requested documentation timely and understand that that failure to provide verifiable documentation may result in ineligibility or withdrawal of the application. Name: Signature: Date: Name: Signature: Date: Name: Signature: Date: Name: Signature: Date: Georgia law prohibits residential mortgage fraud (O.C.G.A. Â Georgia Residential Mortgage Fraud Act). A person who commits mortgage fraud is subject to imprisonment and/or a fine. Whoever, for the purpose of obtaining any loan or advance of credit from any person, partnership, association, or corporation with the intent that such loan or advance of credit shall be offered to or accepted by the Department of Housing and Urban Development for insurance, or for the purpose of obtaining any extension or renewal of any loan, advance of credit, or mortgage insured by such Department, or the acceptance, release, or substitution of any security on such a loan, advance of credit, or for the purpose of influencing in any way the action of such Department, makes, passes, utters, or publishes any statement, knowing the same to be false, or alters, forges, or counterfeits any instrument, paper, or document, or utters, publishes, or passes as true any instrument, paper, or document, knowing it to have been altered, forged, or counterfeited, or willfully overvalues any security, asset, or income, shall be fined under this title or imprisoned not more than two years, or both. 18 U.S. Code Department of Housing and Urban Development and Federal Housing Administration transactions (June 25, 1948, ch. 645, 62 Stat. 751; Pub. L , 24(c), May 25, 1967, 81 Stat. 28; Pub. L , title XXXIII, (1)(K), Sept. 13, 1994, 108 Stat ) 10