How to Prevent Loan Modification Denial

Strategies to Prevent Loan Modification Denial:

As the borrower, you must be involved in the loan modification process at every stage of the process. The #1 reason for a loan modification denial is the lenders claiming that you did not send complete and accurate documentation in a timely fashion. You must keep detailed and organized records of all communications to and from the lender to prove you provided the lender with all of the documents required for a loan modification application. You must always keep in mind the following strategies to prevent a loan modification denial.

Preparing for the Loan Modification Process

Steps to a Successful Loan Modification:

1. Determine your eligibility status before contacting your lender
• You must have suffered a financial hardship that makes your current. mortgage payment at the current interest rate unaffordable.
• You must have steady income (other than unemployment benefits) for at least 3 months.
• Your income must be greater than your expenses (excluding your mortgage).