Why A Lender Denied Your Loan Modification
Posted on May 12th, 2011
The New York Foreclosure Law Blog has posted an article that gives some reasons why some loan modifications are accepted and others are rejected by lenders and pushed into foreclosure.
One reason is that many lenders have poorly trained staff, which also leads to homeowners being told false or inconsistent information. Sometimes lenders even tell homeowners that their packet is missing documents even though they have been sent in multiple times. Some lender reps even encourage homeowners not to pay their loans and later the homeowner is rejected for a loan modification. This is particularly irritating for homeowners as they feel like the lender actually set them up to be rejected for a loan modification.
Some lenders encourage homeowners to apply for modifications but then later inform them that a “mysterious investor” won’t approve it. Homeowners seeking a loan modification should plan ahead and check a copy of the pooling service agreement and be willing to try other arrangements.
Most homeowners feel lost and helpless when seeking a loan modification or fighting a foreclosure. They don’t know how to make a lender keep their word and act appropriately, however, an attorney does. Consulting with an attorney can be crucial to obtaining a loan modification.
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Tags: Loan, Loan Modification
Filed under Financial Tips |