what you should do if your loan modification has been denied
Posted by Foreclosure Prevention in Real EstateWhat do you do if your lender rejects your home loan modification?
If you have tried to obtain a home loan modification, but your lender did not approve the modification, you do still have options. There are many reasons that lenders deny these applications, but if you get the right legal representation you still have options. Do not get discouraged!
If you find the right legal representation, they can help you. Basically, a lawyer can challenge your lender and take action against them. There are several factors that go into this dispute and each situation is different. You will have to speak with a lawyer to see if your situation qualifies, but most of them do when modifications are concerned.
When your legal council disputes your lender, your mortgage is put on hold while the dispute process takes place. This means that you do not have to make payments until the case is settled. If their are any errors on the way your lender did your loan, you may also be due relief on those errors. If they don’t find any errors in your loan (very rare) you will have at least found the necessary time to get back on your feet and change your financial situation.
During the process of the dispute, it is not uncommon to go weeks or years without making a mortgage payment. This has been the case for many clients and provides the following benefits:
1. Time to stay in your home, save your money and decide the best course of action
2.Cause for the lender to renegotiate your loan to payments you can afford
Also, during this dispute process by law the lender CANNOT:
- 4.Negatively report you to credit bureaus
- 2. Charge interest
- 1. Demand payment
- 3.Charge any late fees
This situation is ideal if you are 1, 2 or even 3+ payments behind on your mortgage. Even a homeowner who has received an NOD can benefit from this unique program.
Click the following link for more information on this program and to see if you qualify: loan modification not approved
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