Home Saver's Blog


Why did my lender turn down my modification application?


While loan modifications are becoming very popular, many of you are turning to your lenders for help, which is the reasonable thing to do. The typical process would consist of you, the homeowner, filling out an application and supplying your lender with certain documents.

You make a follow up call to make sure your package was received. Sometimes the lender's reply may be, no and you will be asked to mail them in again. This tactic is usually applied when they are trying to put off the inevitable. This is very frustrating to you because time is running out and you need immediate help. 

Next, you confirm your paperwork was received, again. But you talk to someone in a call center who sounds almost robotic and says something like, "Your case will be reviewed within 90 days". This is the most emotionally traumatizing part of the whole process. It's a waiting game. It's the not knowing the verdict. It's the sleepless nights. It's the strain that is put on your family. It's the planning for who knows what and when. It's the enormous amount of strength it takes to keep yourself from going insane.

You continuously call to make sure your file has not been misplaced, and too see how much longer it will take for someone to get to it. You get the same answer, with a similar robotic voice. Or maybe this time someone gives you a little reassurance.

Finally, after agonizing months, your lender contacts you either by mail or phone. It's that call or letter you have been anticipating for, it seems an eternity.

The call is not what you expect. No good news. Either you are told, "Sorry, you do not qualify for a loan modification because of blah blah blah." Which in most cases seems very unreasonable to you because you did what they asked, and you are struggling. How could they possibly turn you down? Or maybe you will hear something like this, " At this point in time we can stop your foreclosure (this is where you start to get that happy feeling) only if you can pay $5000 up front and the remainder of your amount past due will be broken up and applied to your normal mortgage payment over 12 months." This is where your heart drops into your stomach. And you don't know who to turn to for help, or for that matter if anyone can help.

Now please, keep in mind, the above statements are scenarios. I have had many clients call me and tell me about their horror stories. I am not implying in any way that this will happen if you contact your lender for help. But I can tell you it is happening a lot.

Now, the reason for this is not personal. It is not because your lender dislikes you, or because you called them too often and struck someones nerve. It does not benefit your lender to foreclose your home. Did you know it costs a lender anywhere from $50,000 to $100,000 just to complete the foreclosure procedure? So you say to yourself, "Okay, so doesn't it make sense for them to lower my rate a little, bring me current, or even to maybe knock a little off of what I owe just to keep me on the books and still make a ton of money off of me?" Yes it does. The problem is, most lenders don't have the manpower to keep up with all of the requests for these loan modifications and pre-foreclosures. So they have no choice. They have to turn you down or offer a quick fix, to buy time.

This is why so many of you are turning to outside help. It's too emotionally draining to handle on your own, and besides, most people don't know how to even begin to negotiate with their lender. It's best and more rewarding to put this chaos in an expert's hands. I advise you to utilize an attorney or attorney based company. Attorneys have a strong presence when presenting your case to them. There is strategy and an intended battle to help your case along. No matter what company or Attorney you choose, make sure you do extensive research to ensure legitimacy.

I have complied a handful of companies who:

1. Are members of the BBB with a Good rating or in good standing with the Bar Association  if they are an Attorney
2. Are attorney based or a Law Firm who oversees the files or does the actual negotiating
3. Have proof of success
4. Have passed my legitimacy test (scam free, and researched thoroughly through reliable resources, contracts reviewed, and imperative questions answered)
5. Have reasonable fees and have a Money Back Guarantee
6. Have the clients best interest in mind
7. Are structured and organized
8. Are in compliance with federal regulations and guidelines
9. Are helping homeowners in the State you reside in

As you can see this takes a lot of footwork and many hours to develop. Each company is unique in their own way and offer different services and have variable fees. After speaking with you about your unique situation and having evaluated your circumstances, I will suggest someone who suits your needs, explain the process, and will be there every step of the way.


I have many blogs that are intended for the public to be informed and get honest answers. That is hard to come by on the Internet. I have taken it upon myself to look out for your best interest whether it benefits me or not. There is so much self gratification just knowing I am helping thousands, if not, millions of you become more and more informed so that you can determine what's best for your family, on a no- pressure basis.

If you have any questions or just need some advise, feel free to comment or contact me. Whatever you are most comfortable with.

God Bless!

More Helpful Blogs:

How to Avoid Loan Modification / Loss Mitigation Scams

Loan Mitigation Services FAQ's

Investors Facing Foreclosure

Why won't my lender won't work with me?

How to Prevent Foreclosure on Your Investment Property

C Thompson

Loss Mitigation Case Manager






Pre-Approval Loan Modification Application








C Thompson

Account Manager

Call me: 

Fax: 206-203-1890

Email me: keepyourproperty911@gmail.com


Comment balloon 1 commentCallie Thompson • March 27 2009 10:17PM
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