Most foreclosure bailout loans require at least 35% equity in the home and credit scores over 350. While many potential borrowers do not fall into this category there are some that do and can benefit from the bailout programs.

Hard money loans and Subprime mortgage loans are normally used for foreclosure bailout loan program. These owner occupied borrowers are still subject to federal regulations such as Dodd-Frank which require the borrower to verify their income. Income verification is usually accomplished by providing the lender with pay stubs, W2s or tax returns, if you are self employed then they can even you average deposits for their personal or business bank statements as their income. The borrower is also required to keep their debt to income (DTI) under a certain ratio. The borrower’s existing debts including other mortgages, car payments, credit card payments and other debts will be considered in the ratio as well as the new proposed mortgage obligations (mortgage payment, taxes and insurance).

A Full Documentation Loan refers to a loan where all income and assets are verified and documented. It is typically referred to as a "full doc" loan in the mortgage industry and is a common type of loan used for financing a home purchase or refinance.

Full Doc Bailout program includes providing one of the following;

Last 2 Years of Tax Returns or 1040’s

Last 2 Years of W-2’s & Pay stubs,

Last 2 Years of 1099 Misc form

24 Months of Personal or Business Bank Statement