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Reasons Why Loan Modification Applications are Denied

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Reasons Why Loan Modification Applications are Denied

The denial of a loan modification application, either through Home Affordable Modification Program (HAMP) or a lender, can be devastating, and foreclosure may feel inevitable. However, many homeowners can avoid denial if they understand the common reasons for denial ahead of time. Applying for a home loan modification is a big decision to make, and it is necessary to research about the process, reasons for denial, and what to expect if your application is approved. As such, if you are already aware of what steps you can take to avoid denial of your loan modification application, then you may have a better chance of having your application approved, depending on your individual financial circumstances.

Top Reasons for Denial

There are a variety of reasons why a loan modification application is denied, and many of these reasons arise from minor mistakes that can easily be avoided. Reasons for denial include, but are not limited to, the following:

• Failing to provide documentation proving you have sufficient income to make reasonable mortgage payments;
• Submitting an incomplete application by omitting certain information;
• Failing to submit key documents such as tax forms, hardship letters and/or affidavits, financial worksheets, and loan documents; and
• Applying for a loan modification through HAMP when you already have a modified repayment plan in place.

There is an abundance of research online regarding home loan modifications, and such information is accurate at times, but can also be inaccurate from time to time. Thus, you should speak with a legal professional who can provide you with the accurate information you need in order to submit a complete home loan modification application. While there are loan modification companies or agencies that help homeowners seek modification of their home loans, you will have peace of mind by having a skilled Loan Modification Attorney help you with the process.

Avoiding Foreclosure

Given that minor mistakes such as those listed above can result in foreclosure after being denied the ability to modify your home loan, it is important to consider all available options. A Loan Modification and Debt-Management Attorney can help not only with the loan modification process but with other financial guidance to help you avoid foreclosure. It could be that refinancing your home loan is a better option that will allow you to keep your home. Loan modification certainly has helped homeowners manage their mortgage payments and keep their homes, but some homeowners may find that refinancing is the better way to go. Either way, you should work with an attorney who can evaluate your financial situation and lead you in the right direction.

Contact The Law Offices of Georgette Miller and Associates, P.C. Today

Seeking a loan modification on your home loan is a great way to avoid foreclosure, however, many homeowners who apply face denial of their application. The loan modification process can be complicated and stressful, and it is often something that is difficult for homeowners to do on their own. There are multiple “do it yourself” loan modification companies that provide you with the basic tools for seeking a home loan modification, but this can be risky. It is much safer to work with a skilled attorney who can help you with the loan modification process in an effort to avoid denial of your application. If your application is denied, the Loan Modification Attorneys of the Law Offices of Georgette Miller & Associates, P.C. will work with you to find other options to avoid foreclosure. With offices in Philadelphia, PA, New York, New Jersey, Washington, D.C., and Maryland, our Loan Modification Attorneys are able to help a wide range of individuals and businesses. To schedule an initial consultation with one of our Loan Modification Attorneys, contact the Law Offices of Georgette Miller & Associates, P.C. today by calling (866) 96-GMLAW.