The hardest clients to work for are the self-employed.
If you are self-employed, please let us do your modification. They are much more complex than other modifications.
If you are self-employed, I will need two years of tax returns and the last three months of all your bank statements. I will need an explanation as to why your income went down and what is happening to turn that around.
If you are self-employed, you must run your income through your business bank account. Don’t take draws. Instead, write yourself paychecks and deposit them into your personal account. Deduct Social Security, Medicare, and income tax from each check. Keep your business and personal affairs separate.
If a customer pays you in green cash, deposit the green cash into your business bank account. You have to prove you have enough income to pay your mortgage and your basic bills.
You may have gotten into your bad loan on a stated income basis, but you cannot get a modification on a stated basis. The lender will insist on seeing your bank statements.
The bank will also want to see your profit and loss statement for the year to date or for the last three months. The bank will accept an unaudited profit and loss statement. It does not have to come from or be signed by your accountant .