Unfortunately, getting denied for a mortgage modification has been a reality many homeowners have had to face in recent years. Despite record high foreclosures many lenders weren't willing to extend modifications to some homeowners. Whether denied for legitimate purposes or the result of stubborn lending practices, it can feel like options are running out when you get that rejection letter. Luckily, there are some things you can do to remedy a mortgage modification denial.
Fighting Back
The first step in fighting a mortgage modification denial is to contact the lender and find out why you were rejected. It is important to know the criteria they use for qualifying homeowners so be sure to ask them what these details are. In some cases, denial could be the result of missed paperwork or inaccurate documentation. If so, you may be able to provide the needed information and reapply. In other cases, your denial may be due to failure to meet their guidelines. If so, find out what minimum credit score is required, guidelines for default and what loan-to-value limits are in place. You can then take this information to other lenders to compare your eligibility.
If you aren't having any luck dealing with your lender or another traditional lender it may be time to consider securing a modification through the federal Home Affordable Modification Program. This is a federal program that was created to help homeowners qualify for and secure a mortgage loan modification. Many people who have been denied by their lenders have found success through this program. The help offered here is part of the government's Making Home Affordable program, designed to keep people out of foreclosure and provide them with the help needed. People disqualified for lower credit scores, underwater mortgage loans or too many missed mortgage payments may be good candidates for this program.
Another important option is to consult a foreclosure lawyer. They can review your case and help you determine if there is any legal recourse against your lender. The U.S. Court of Appeals recently ruled that homeowners have the right to sue lenders, if it is suspected that their rejection of a mortgage modification request was unjust. Having legal representation will greatly improve your chances of winning litigation against your lender. Even if you can't sue your lender for unfair denial of a modification, a foreclosure lawyer can still help you negotiate your options with your lender.
Fighting Back
The first step in fighting a mortgage modification denial is to contact the lender and find out why you were rejected. It is important to know the criteria they use for qualifying homeowners so be sure to ask them what these details are. In some cases, denial could be the result of missed paperwork or inaccurate documentation. If so, you may be able to provide the needed information and reapply. In other cases, your denial may be due to failure to meet their guidelines. If so, find out what minimum credit score is required, guidelines for default and what loan-to-value limits are in place. You can then take this information to other lenders to compare your eligibility.
If you aren't having any luck dealing with your lender or another traditional lender it may be time to consider securing a modification through the federal Home Affordable Modification Program. This is a federal program that was created to help homeowners qualify for and secure a mortgage loan modification. Many people who have been denied by their lenders have found success through this program. The help offered here is part of the government's Making Home Affordable program, designed to keep people out of foreclosure and provide them with the help needed. People disqualified for lower credit scores, underwater mortgage loans or too many missed mortgage payments may be good candidates for this program.
Another important option is to consult a foreclosure lawyer. They can review your case and help you determine if there is any legal recourse against your lender. The U.S. Court of Appeals recently ruled that homeowners have the right to sue lenders, if it is suspected that their rejection of a mortgage modification request was unjust. Having legal representation will greatly improve your chances of winning litigation against your lender. Even if you can't sue your lender for unfair denial of a modification, a foreclosure lawyer can still help you negotiate your options with your lender.
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