Loan Modifications - Reasons they are not being accepted

I recently wrote a blog about loan modifications, and I now want to step in further and get a little more information out on why those loan modifications have not been working.  As a homeowner, the last thing you want is to loose your home to the bank, and I therefore want to help provide answers and options that will prevent you from such a misfortune. 

Many homeowners do not realize that nearly all Mortgage Income Banks have basic income qualification parameters.  They look at how much the homeowner is making compared to their living expenses, and also if the homeowners income is too low, they assume that they will not be able to pay the new loan amount and will end up defaulting anyway, therefore they see it as not worth it to do the loan modification. 

The second reason borrowers fail to recieve loan modifications is because the loan modification package is not correctly completed.  The mortgage banks are bombarded with loan modification and short sale requests, and they are not going to waste time with packets that are incomplete or incorrectly filled out. As I have mentioned before, it is crucial if you are trying to save your home that you work with a professional that is able to assist you in order to prevent these mishaps. 

The third reason that loan modifications are rejected in California is because of the current loan programs and interest rates are not flexible enough.  Many homeowners will spend weeks going through the process of filling out paperwork and calling the banks just to be rejected because their current loan terms and rates are deemed "good enough."

The fourth reason are poorly written hardship letters.  In order to be considered for a loan modification you need to profide a letter of hardship which describes why it is that you are in need of assistance with your loan.  The Mortgage Banks tend to put most of their emphasis on this letter which can then make or break the deal, or determine how much of a loan improvement the borrower will recieve. 

I stress again how important it is to work with someone who knows what it is that they are doing when it comes to saving your home.  If you try and work out the negotiations with the bank yourself or with someone without professional experience, then you do not have much of a chance. But if you would like to find out more about the  options that you have, and if a loan modification would work for you then click the link and contact me today.