Your Loan Modification Was Denied?
Homeowners are applying for loan modifications in record numbers. Various conditions have brought on financial hardships that make paying their monthly house loans tough or even impossible. Many have successfully received loan modifications approved. But, what should you do should your loan modification was denied? Unfortunately , that occurs a lot. If you have been denied, it certainly is not the end of the world. You may feel depressed and defeated, that’s okay – that’s normal. But now you have to try and shake it off and roll up your sleeves.
Know Why Your Application Was Denied
There might be several reasons why one homeowner is denied while another is not. You should contact your lender and ask why. You may not get an answer the first time you call. Keep calling until you receive the important information. Let us look at a few common explanations why a house owner can be denied and subsequently step to take in each predicament.
If You’ve Been Denied On Account Of Not Enough Proper Documentation
This can be easily rectified. Find out just what documentation was missing from your application. Verify that you are clear on what is required. Then find whatever documents you were lacking and reapply.
Your Lender Denied Your Loan Modification Application Because Of Your Income
It is common for a homeowner who has lost their employment to get a loan modification. Without having income, they are not able to make their regular home loan payments. A lender may possibly deny an application due to insufficient income. In this case, try getting employment elsewhere immediately. In challenging times which might be easier said than done. But when you’re working to be in your own home and income is a problem, you’ve got to try and find employment. If that isn’t a possibility, ask other members in your household with incomes to apply for the loan modification with you. This way you can utilize their income when you apply again.
Hardship Letter Not Acceptable
Should Your lender notifys you that you were denied resulting from something you wrote in your hardship letter – it’s time to get pen and paper and start once again. It’s essential to be able to back up your hardship claim with documented proof. Request your lender what was the issue with your hardship letter. If it was documentation, find out what you overlooked and include it when you reapply. Ensure that your circumstances qualifies as an acceptable hardship before you apply.
Divorce
Death of a spouse or other family member
Job loss
Excessive debt
Medical Bills
These are just just a few hardship situations that are considered acceptable. Check with your lender or a loan modification companies for more information on this. Keep your letter to one page…two at the most. Once you’ve rewritten your hardship letter, then you’re able to reapply.
Denied Because The Expenses You Claim Don’t Add Up
When you’re sure your figures in relation to your claimed expenses are correct and that it is best to qualify. Ask your lender if you possibly could meet with them and check your documents line by line. Lender representatives are only human and humans make mistakes. In particular when it comes to calculating fiscal reports. Ask them to demonstrate specifically where the problem is. Then go over it again with a fine tooth comb. If you indeed find an error, make the desired corrections and then reapply.
Now you have a good idea of what to do if the loan modification was denied. You also know that there are lots of methods of repair the problem and re-apply. The great thing is, there is no limit to how frequently you can apply for a loan modification. The old saying,” If at first you don’t succeed try try again”…in this instance should be…”If at first you don’t succeed try try again and again and again!” You’ve spent considerable time and energy getting documents, writing your hardship letter and doing whatever you necessary to apply. Getting denied happens, but that doesn’t mean give up.
If you want help, consider a loan modification service to help you correct the difficulties that got you denied in the first place. You worked hard to buy your home…now you’ve got to be ready to work even harder to keep it.
I trust this has been useful for info on loan modification, and of course you can find out more on the website itself at http://bestloanmodificationcompanyreviews.com, why not go there now and try them out.
Processing your request, Please wait....
