How Can I Save My Property if the Bank Denied My Modification?
Homeowners in danger of having their property foreclosed on due to a delinquent mortgage often first attempt to have their mortgage modified. This modification may allow them to pay less each month, making payments more manageable, or to change the rate of interest. Often banks will deny these modifications. In such an instance, you may have several options to save your home from foreclosure.
Other People Are Reading
-
Correcting Application
-
According to Mortgage 101, there are a number of reasons that you may have been denied a modification. For example, you may have delinquent credit, insufficient income or information that was missing from your application. If any of these are the case, then you may benefit from fixing one of these problems -- say, by getting a second job or paying off old debts -- and then reapplying. For aid with debt, you also may wish to talk with a nonprofit debt counselor.
Refinancing
-
While a loan can be modified only with the cooperation of your current mortgage lender, a loan can be refinanced by any lender that agrees to do so. When a loan is refinanced, it means that it is being swapped out completely by another loan. Sometimes, you may not qualify for a loan modification, but you can qualify for a refinanced loan from another lender. Your should shop around to various lenders and inquire as to loans they'd be willing to offer.
-
Seeking Goverment Assistance
-
There a number of state and federal programs that are available to homeowners wishing to change their mortgage. To figure out the full range of programs for which you may qualify, you should check with both the U.S. Housing and Urban Development Department and your local secretary of state's office. Many of these programs are designed to support individuals who are not able to modify their mortgage with their present lender.
Exploring Bankruptcy
-
In certain states, declaring bankruptcy -- either Chapter 7 or Chapter 13 -- can be a valid means of keeping your home. Often, state law will allow a homeowner to protect his property after declaring bankruptcy, often by modifying his loan, even against the lender's wishes. However, some states offer little protection after bankruptcy, and a bankruptcy can have a number of negative effects, such as a drop in your credit rating, so a person should be sure to consult a debt counselor or bankruptcy attorney before choosing this step.
-
