Loan Modification Request Is Rejected

Loan Modification Rejectedeverything works out smoothly and you get a chance to save your home. However, it is to be understood that this would not be the case always and you might have to worry about foreclosure still. The lender may reject your application on any grounds and send a letter of foreclosure of your house. In this situation, you are not left with many options.

Some people simply like to abide by the foreclosure and move somewhere else. Some others, who are worried about the credit status and the burden of a dead loan, prefer to opt for short sales so that they can get rid of the mortgage altogether. However, this can be a risky path and you need to be extra careful with the proceedings. There is a third option to the foreclosure deal as well. If you think that repaying the loan on new terms is okay with you and you do not want to lose your house and your good credit record, you can opt for loan modification.

Contact A Mortgage Consultant:

However, when all the doors seem closed and your efforts seem to go in vain, you must consult an attorney. It is quite likely that you have all the communication with the lender saved with you. Carry these documents to the attorney along with the letters and proofs of hardships that you have faced and because of which your loan repayment capability must be recalculated. If you have everything in sync, then you would be building a very strong case. Make sure that your mortgage attorney reads it all well.

After you are sure that your case stands a chance, appeal in the court. Your attorney would be taking care of the rest. Chances are high that a Temporary Restraining Order or TRO will be issued by the court on your request. After subsequent hearings and litigation, you would likely be retaining your house and would also be avoiding any negative credit reports. Therefore, this becomes the final option for many homeowners.

If your loan modification request is rejected and you have received a foreclosure letter, then you must act fast and visit an attorney as soon as possible. This is so because you would hardly have 21 days to take any action, failing which your house would be up for foreclosure.