Denied A Loan Modification? You Still Have Options

Author: Bob Mason

Were you denied a loan modification?  Don't worry, it happens to many homeowners, even myself.  There is definitely still hope to get your loan modification approved.
If you were like me, you called your lender and asked to speak with the "loss mitigation" department or something similar.  Once on the phone you asked "I'd like to see if I qualify for a loan modification". Once transferred to the right department, you were then speaking to an individual who started asking you a series of questions...
"You owe $51,890, how would you like to pay for that today?"
um, I can't even come close.
"Ok, so you'd like to see about a loan modification, correct"
"yes"
"How much is your total monthly income?"
"ah, I'd say about $4,500?"
(then they go over expenses...which are way more than I said I make}
"I'm sorry, you do not qualify for a loan modification at this time.  Have you thought about a short sale?"
"CLICK".
And that's that.  Well, the big mistake was not preparing my financials (income vs. expenses) before I called my lender.  I thought I should say some low amount of income (my mortgage payment was $3,000) to qualify.
In reality, you have to be able to show that you can afford to pay a new, lower payment to get approved.  There is a fine line between approval and denial.  Even $100 can make a significant difference.
To get it right, there are a couple options.
1st, go to qualify for a loan modification and check out their free HAMP loan modification calculator.  This will tell you if you should have qualified, instead of being denied for a loan modification. It will also tell you what your new monthly payment would be and you can decide if you can afford that or not.
The other way to go is with modification companies.  There are companies that will get you a loan modification before you pay anything (no upfront fees). To see a list of these companies and read reviews about them, you can visit denied loan modification help.
If you have been denied a loan modification, I hope these two options will help you to get approved.
Article Source: http://www.articlesbase.com/loans-articles/denied-a-loan-modification-you-still-have-options-2190220.html


About the Author

Once again, to see if you qualify for free, go to qualify for a loan modification.  To speak with companies who can help get you a loan modification that do not charge upfront fees, visit loan modification companies. Best of luck.