Question: I have been given a run around by my bank regarding a loan modification. They put me in a foreclosure and then rescinded. They assigned multiple representatives to my account. Recently they sent me a letter stating that I am not eligible for a loan modification, because I did not provide them the documentation they requested, although they had this documentation from me on file for a while now, but according to them it now needs to be updated. Our biggest fear is that they can put us in foreclosure and take our home away whenever they want to. So far, I tried working with the bank directly with no third party assistance. We sent them all requested documents months ago, only to be asked to start all over. We thought we were going to be approved for a loan modification, so that we can move on with our lives. But now we are at square one again. We have sufficient income, so we can afford the mortgage.
Response: There are a lot of criteria that need to be satisfied to be approved for a loan modification. Banks are so overwhelmed by the number of homeowners who are in default and are seeking assistance that is it almost impossible to find a bank that completes its deadlines to review the documents timely. You have to be patient and annoying and call the bank at least once a week to find out the status of the review. If anything is missing, it needs to be supplemented immediately. Otherwise, documents have such a short life span that within 60 days, documents will go stale and will need to be updated again and again. It is always best to send everything at once. If something is missing or income cannot be verified immediately and you need two new bank statements, you will have to resubmit all documents again (including updating all the forms which sometimes change its format). That’s the first part of the puzzle. Second is actually qualifying for a loan modification. To get a loan modification, you must qualify, which means you have to be within specific income brackets to qualify in proportion to your total debt (including arrears). You can’t make too much and you can’t make too little since both of those reasons could disqualify you, among many others. Receiving a denial for missing documents is not the end of the road. Rather, it is the beginning for a new submission with all new documents. Before you submit, it is better to speak to a professional who has knowledge of this area so your financial situation could be properly assessed whether you qualify.
In the legal blog, Attorney Svetlana Kaplun addresses typical questions our firm has received from our clients, or come across from homeowners related to foreclosure, foreclosure defense, loan modification and bankruptcy topics.
The information contained in the legal blog of Attorney Svetlana Kaplun is for informational purposes only, and should not be construed as a legal advice on any subject matter. Please read our full disclaimer or contact the Law Office of Svetlana Kaplun, P.C. by telephone at 718-444-1115 for more information.
Copyright © 2015 Law Office of Svetlana Kaplun, P.C.
modification, making home affordable, hamp, mortgage modification, harp refinance, making homes affordable, modifications, home affordable modification program, home affordable refinance program, hamp program, home loan modification, loan modification guidelines, foreclosures, foreclosure listings, foreclosure homes, mers, foreclosure settlement, foreclosure homes for sale, free foreclosure listings, foreclosure home, deed in lieu of foreclosure, foreclosure process, how foreclosure works, home foreclosure, foreclosure radar, bank foreclosure, home foreclosures, foreclosure listing, hud foreclosure, foreclosure laws, short sale vs foreclosure, stop foreclosure, totally free foreclosure home listings, foreclosure help, free government home foreclosure listing, free listing foreclosure home sale, free foreclosure listings with pictures, fannie mae foreclosure, independent foreclosure review, lawyers, power of attorney, personal injury attorney, attorneys, power of attorney form, durable power of attorney, power of attorney forms, criminal attorney, attorney search, medical power of attorney, free power of attorney, bankruptcy attorney, power of attorney template, power of attorney form download, durable power of attorney form, free power of attorney forms, general power of attorney, free printable power attorney form, lasting power of attorney, tax attorney, free power attorney forms, divorce attorney, ace attorney, disability attorney, attorney jobs, enduring power of attorney, attorney at law, patent attorney, free power of attorney forms to print, real estate attorney, injury lawyer, personal injury lawyer, defense lawyer, criminal defense lawyer, the lawyer, accident lawyer, a lawyer, criminal lawyer, motorcycle accident lawyer, rocket lawyer, bankruptcy lawyer, divorce lawyer, ask a lawyer, find a lawyer, lawyer referral, car accident lawyer, family lawyer, lawyer search, lawyer find, lawyer ratings, lawyer referral service, immigration lawyer, dui lawyer