Any financial decision, especially if you are deciding on working with professionals in the financial field, should, must, be taken seriously. Far too many homeowners causally approach their Mortgage Servicers only to receive a denial letter. This article provides homeowners with understanding why their application may have been denied, and why they should not despair.
Why are Many Borrowers Turned Down Who Seek Loan Modifications?
Are you thinking from the title, “This is me, I was just turned down and I am not sure why?” I have spoken with many homeowners who have recently been denied a loan modification. They are confused because according to their own research they qualify but for one reason or another their lender has damned their opportunity to reduce their monthly payment, making their home more affordable. Recently published, HUD announced that the two main reasons people have been denied a modification is due to their missing payments during their trial period or individuals who are trying to get a modification by stated income, without any verifiable documentation. These situations present high risk to lenders, and are validated reasons for denying borrowers a modification to their loan.
Wait, although this applies to some borrowers what about individuals in your position who didn’t receive a trial period and were denied only receiving a denial letter saying you don’t qualify. You then ask yourself, “If I have been denied can I try again? If I have been denied once is that final? Why would my lender turn me down if I qualify, but they say I don’t?”
If I Have Been Unsuccessful – Should I Give Up?
If you have been turned down do not fret because many homeowners have been turned down initially, which happens more often than you think. Your denial could be because you were missing documentation and instead of contacting you for the missing documents (with all the other complete files they are currently working on) they deny your application.
Another reason could be your income analysis. Although you qualify with your front-end debt to income ratio your back end is high risk, thus they deny your application. Because of these reasons and others unless you understand the financial parameters lenders are assaying, you may be denied because of your lack of knowledge. Knowledge is one reason why seeking professional help through a licensed modification company may be the most effective method to modifying your loan. Professional modification companies educate themselves continually and offer specialized skill in negotiating terms with your lender. Where you have been unsuccessful they may potentially turn failure into success.
Although the mortgage financial industry is more heavily regulated then in times past to protect homeowners from predatory firms. Each individual is responsible to their own due diligence to avoid getting ‘scammed’. One particular element every homeowner should consider is the modification company’s guarantee. It simple amazes me when I hear homeowners who have sought professional experience, pay the professional service fee with no guarantee for their money back if they are unable to successfully modify their loan.
Remember, modification companies cannot guarantee homeowners a modification. Why then would you work with a modification company who doesn’t offer any service agreement guaranteeing 100% your money back if they are unable to modify your loan. If you are paying for a service, the modification, then it only makes sense that you receive the service offered or your money back.
Concluding Statement: As with all financial endeavors the process can be really frustrating, mentally draining, and overwhelming. A loan modification expert working for you will greatly reduce the stress in contacting your Mortgage company, and ease some tension knowing you are in confident and skilled hands to reduce your monthly home payment. For a FREE evaluation please visit Utah Loan Modification to speak with our team of amiable, professional, and knowledgeable modification experts to assess your qualification and their confidence in modifying your loan.
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About the Author:
Andrew Exon is a licensed mortgage originator in the state of Utah. He works for a professional brokerage who assists responsible but struggling homeowners by reducing their monthly mortgage payments via a modification on their home loan. We have been able to substantially increase the potential for our customers to successfully consummate a modification with their lender.
For more information, or to find out if you qualify for a modification with your lender. Please contact Andrew at 801-854-9838, or visit one of our two websites Utah Loan Modification or Local Mod.
We look forward to assisting homeowners in successfully helping them to reduce monthly payments and keeping them in their homes.
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