Despite all the government pressure on Bank of America and other large institutional lenders, many still refuse to negotiate a loan modification in certain cases. “Bank of America won’t negotiate loan modification” is a common complaint among borrowers with Bank of America loans, leaving many borrowers wondering what to do. As a loan modification attorney, we’ve been through this many times, so here are some possible options to get through to Bank of America or other lenders:
What Can Be Done When a Lender Refuses to Negotiate Loan Modification
Resubmit The Loan Modification with More Income. The first thing that can be done is to take a close look at the loan modification package that was submitted with a very critical eye, and try to figure out why Bank of America won’t negotiate loan modification on that file. The most common reason for loan modification turn-down is insufficient income. If you can produce more income (see tips on increasing income here: /blog/income-too-low-for-loan-modification), and resubmit the loan modification package for negotiation with additional income, this often can go a long way to start the loan modification negotiation process.
What to do when Bank Refused to Negotiate Loan Modification
Before re-working the loan modification package, it’s important to close the previous package or submittal the bank has on file. Having two loan modification packages with different income open with the bank at the same time will only complicate matters. So when the bank refuses to negotiate loan modification, it may be a good idea to simply close that file, and resubmit a new one with more income. Insufficient income is the most common reason the bank refuses to negotiate loan modification with homeowners, so if you’re not sure why the bank won’t negotiate loan modification, it’s reasonable to assume it’s probably for not enough income.
California Loan Modification Attorneys
McFarlin LLP attorneys handle all aspects of loan modification for borrowers in San Diego, Orange County, Los Angeles, San Francisco, Oakland, Modesto, Stockton, Sacramento, Bakersfield, Moreno Valley, Palm Desert and throughout California. Our attorneys are available to provide you with honest reliable advice at our Irvine offices or over the phone. With a matter as important as loan modification and foreclosure, it is a very good idea to consider hiring a qualified California loan modification attorney to represent you and protect your interests. Call us today at (888) 728-0044.