I was recently approached by a couple of homeowners who unfortunately lost their homes in foreclosure. They came to me too late. Their stories are disappointing because if they would’ve come to me the first time their loan modification was denied; I would’ve been able to help them short sell their home without having to go through the stress of being foreclosed on.
Instead, they went to someone who fed them false hopes about keeping their home and encouraged them to file bankruptcy several times. Loan modifications are reviewed case by case. Unfortunately, not all loans get modified. Homeowners should seek assistance in evaluating their financial status to see if they would qualify for a loan modification. If they don’t qualify, they should consider short selling their property.
It is not rare in this current market, for homeowners who are underwater to go through the process of applying for a loan modification; and if it is denied or they don’t get offered what they expect; to file bankruptcy and extend their stay in the property. Nonetheless, there will be a point in time, when they will need to move out. Why wait until the new owner delivers a notice to vacate the property?
Please don’t get me wrong. I understand there is an emotional component and I’m sensitive to it. I’ve known of homeowners who have tried a second time and successfully have gotten their loan modified, which is great. I’m sharing this story for those who know they truly cannot afford their home any more; so they may come to realize there is still hope. Maybe not what they want, but what is best for them right now—short sell, re-establish credit, and purchase a new home in three years.
As always, I’m here to help with any of your real estate needs. There are many government programs out there that you may take advantage of.
2 thoughts on “My Loan Modification was Denied. Now what?”
i hired a lawer to take care of this modification I havent received any answer from the mortgage or the lawer ..do I move towards short sale now? Im in las vegas nevada
I apologize for not responding to this message from 2013. Around this time, I stopped writing due to a chronic illness and did not see the message. My response would be irrelevant at this point but I still wanted to express my apologies.