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Answers (5)
- Adolph Gonzales, "M1RE"
- Contributions:14
I am very sorry to hear about your situation. The problem with your question is that most people with the media included believe the purpose of modifications are to help homeowners. That simply is a complete misconception. The purpose of any modification is to help the bank mitigate or reduce its losses. The act of modifying is solely for the benefit of the bank with the homeowner inadvertently receiving a benefit. That is why so many people are not "qualifying" for loan modifications. It is just not in the best interests of the bank. No matter what name/brand they give it whether Hope for Homeowners, HAMP, Help for Homeowners Facing Financial Hardship, the bottomline is the same: If its not good for the Bank, its not going to happen.
- Naima Sumner, "Dallas Ft. Worth PRO"
- Contributions:2847
I am sorry to hear about your troubles.
There is a lot more than just the hardship that banks take into consideration when they decide if they will approve a MOD or not. Part of the package that you submitted to them was recent bank statements, if they feel that you have spendings on non-necessary items such as dining out, electronic store purchases, which they classify as "splurging" they use their discretion to deny a modification.
Did they tell you why they denied your application?
A short sale is when you attempt to sell your house for less than what you owe. It too will have to be approved by the bank. You need to speak to a Realtor in your area that specializes in short sales to help you through the process. It will damage your credit just as much as a foreclosure though. It is a lenghty process too.
Naima
There is a lot more than just the hardship that banks take into consideration when they decide if they will approve a MOD or not. Part of the package that you submitted to them was recent bank statements, if they feel that you have spendings on non-necessary items such as dining out, electronic store purchases, which they classify as "splurging" they use their discretion to deny a modification.
Did they tell you why they denied your application?
A short sale is when you attempt to sell your house for less than what you owe. It too will have to be approved by the bank. You need to speak to a Realtor in your area that specializes in short sales to help you through the process. It will damage your credit just as much as a foreclosure though. It is a lenghty process too.
Naima
- SoCal_Engr
- Contributions:5667
The following is quoted from this site here. I added the bold font.
"This site can help you determine if you are eligible, but only the servicer of your loan can tell you if you qualify. To qualify, you will generally need to show that you have adequate income to make the reduced payments on an ongoing basis and that modification is an appropriate option given the characteristics of your mortgage and the value of your home."
Unfortunately, much of the emphasis is placed on the "eligibility" aspect of this program. And, a lot of people probably are "eligible" to participate. However, it is the "qualify" part of the program that you need to be able to navigate through...and that's much tougher.
"This site can help you determine if you are eligible, but only the servicer of your loan can tell you if you qualify. To qualify, you will generally need to show that you have adequate income to make the reduced payments on an ongoing basis and that modification is an appropriate option given the characteristics of your mortgage and the value of your home."
Unfortunately, much of the emphasis is placed on the "eligibility" aspect of this program. And, a lot of people probably are "eligible" to participate. However, it is the "qualify" part of the program that you need to be able to navigate through...and that's much tougher.
- Melinda Johnson, "Melinda Johnson"
- Contributions:110
Unfortunately the bank does not have to agree to a loan modification. Not only does the bank usually want to see hardship, but also some ability to pay back the loan. And even if you show both, they are not obligated to enter into a modification. Do they offer you any explination as to why you do not qualify? Its a terribly frustrating experience. If they continue to refuse, I would encourage you to consider a short sale over a foreclosure...and sometimes starting the short sale can spur them into considering the loan mod. Its a strange real estate world out there. Sorry for all that you are going through. -m
- wetdawgs
- Contributions:26854
Modifications are very difficult to obtain. You have to prove hardship (which you've done) but you also have to have prove sufficient income to pay for the new terms. Do they give you reasons for your three denials? Are they asking for $10k to reinstate because you've not paid (or only partially paid) the mortgage for a period of time?
With hardship you may be eligible for a short sale, where you sell for less than the amount you owe. You didn't mention that your home is underwater, so I'm just assuming on this one.
With hardship you may be eligible for a short sale, where you sell for less than the amount you owe. You didn't mention that your home is underwater, so I'm just assuming on this one.
Why wont the bank approve a loan modification, if i have proved my hardship? ATT DESPERATE!!
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