Why Won’t My Lender Modify My Mortgage?
Loan Modification Will Stop Foreclosure. That does not mean you can get one. Many Homeowners are unable to get their lender to modify their loan.
Many Homeowners who are in foreclosure or who are having mortgage trouble ask their lender for a loan modification only to get denied right from the get go.
Does this mean that there is no hope for a loan modification or any other foreclosure or mortgage solution?
No. Typically all this means is that the rep the Homeowner is talking to is an entry level rep that is there just as a warm body to pick up the phone and is simply unable to make decisions on the eligibility of a loan modification or other foreclosure workout. Generally lenders are more than willing to work with Homeowners that can’t afford the terms of the existing mortgage if there is indeed a genuine hardship or the terms are not possible to begin with. So then why do Homeowners have a problem talking with the folks who can actually make a decision?
The answer to this is simple. The loss mitigation departments of the lending industries are overwhelmed with requests to modify loans. The phone lines are jammed packed with phone calls. Thus lenders have had to hire low-cost solution to handle the volume of phone calls hence the low-level reps that guard the front lines to the loss mitigation department. The real battle to win before a Homeowner can have a chance of obtaining a loan modification is to find a senior loss mitigation contact who will take a look at their file.
There is no guarantee that you will be able to get your voice heard by someone who can do anything for you. As bad as that sounds it is true. Make sure you really put your foot forward and put in the effort.