What If I’ve Been Declined For A Loan Modification?

This scenario happens all the time. A borrower goes through the whole song and dance of submitting documents and information to their lender to try and qualify for that loan modification, that elusive loan modification and it keeps getting denied. Don’t give up. There are still options. Many times, the process a lender has gone through in reviewing you and evaluating you for the loan modification is not adequate. Under the California Homeowner Bill of Rights, it’s a law that was passed here in California in 2013, the lender has a whole list of duties and responsibilities to you as the borrower when they are reviewing you for a loan modification. In a nutshell, it’s a fair and transparent review that they have to give you. What I’ve found personally with my clients is that it’s pretty rare that a lender will actually offer a fair and transparent review.

So if you have someone like me, a foreclosure defense attorney come and scrutinize the process that the lender went through in evaluating you for the loan modification, frequently there are some things that we can work with. When I say work with, we can use to try to put pressure on the lender to actually give you that loan modification that you are looking for. Most of the times it involves filing a lawsuit against your lender which is perfectly fine. We do it all the time and it is a great way to put pressure on your lender to take a very close look at what they are doing and whether their process was accurate and whether it was fair to you. Oftentimes, we do put your loan modification review under the microscope of litigation, the results are much different.

The lender may find that they may have missed some things, they may have not considered all your income or maybe their investor actually does do loan modifications. If you’ve been declined, if you’ve been denied, don’t give up. Be tenacious, keep trying; either keep submitting it yourself with improved numbers or come talk to a foreclosure defense attorney like myself and there may be some options for you after all. If you have any other question regarding loan modification or any other area of law, I’d be happy to try and answer them, just subscribe to my channel and leave your comment below, I’ll try to make a video for you. Thanks for listening.

For more information on Denial Of Loan Modification, a free initial consultation is your next best step. Get the information and legal answers you are seeking.