Graham Legal, P.A.
814 Ponce de Leon Boulevard Coral Gables, Florida 33134
Phone: (305) 445-9185 URL of Map


What if my bank refuses to approve my modification

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Successful mortgage modification stories are often the ones to get shared, but many homeowners struggle with having a loan modification approved. There are several reasons why a lender or servicer may reject your modification application or deny a loan modification.

Below is a list of probable reasons your loan modification is getting denied: 

Insufficient information: Loan modification applications are tedious to fill out, and confusing for those who lack the experience in filling out legal forms. Not only does all the information need to be accurate, but it usually needs to be supported by other documents, such as proof of change of income , bank statements, and tax returns.

Complicated financial statements: Not all families experienced the negative effects of the bad economy in the same way. While some can easily show that a family member lost his or her job, or that they have increased expenses, others experience a more gradual change such as lowered profits from their business. We have experienced the difficulties of showing loss of income through profit/loss statements and it requires a higher level of follow up and thorough communication with the lender.

Change of lender or servicer: Mortgage loans are transferred between banks and servicers all the time. Unfortunately, innocent homeowners are sometimes caught in the middle of the transaction. We’ve even had some clients that started making modification trial payments, they went through the entire application process and were given an offer, only to have their loan change hands before the modification was finalized. The new bank then refused the terms of the modified loan.

The lender foreclosed prior to completing the process: Intuitively it seems wrong that the very same bank that is working out a loan modification with you could simultaneously foreclose on your home. However, it’s true. The team of attorneys representing their foreclosures is different from the department that processes modifications, and they don’t communicate well with each other. Thus it’s not only possible, but even likely that the bank is working quickly to process the foreclosure while you’re applying for a modification.

There are many other reasons why you may be having a difficult time with your mortgage modification application, but don’t allow it to discourage you. We have helped countless homeowners that lost faith after several failed attempts at applying for a modification. If you’re struggling with your mortgage loan modification, let’s make an appointment to review your application.

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