If my lender denies a loan modification what else can I do to save my home?

A loan modification is essentially any change you can get your bank to make on the terms of your mortgage loan.  There are several types of loan modifications that provide you with different options to prevent or delay foreclosure, including:

• Changes to interest rate
• Skipping payments and adding those onto the end of the loan
• Changing the length of your loan – for example, going from 15 to 30 years can save you a lot every month

If you have been denied any of these modifications, you may still have options to avoid foreclosure.  For example, you could: 

• Consult with a loan modification specialist to see if you can reapply or renegotiated your modification.  In some cases, you may not have completed your documents properly, or failed to adequately represent your case, resulting in the denial.   Do not give up on all loan modifications until you have exhausted all options and professional advice.
• Outside lenders – if your current mortgage lender will not provide you with any form of modification, try to apply with other lenders to see if you can refinance your mortgage with them.  Because you are already behind on mortgage payments, this can be difficult in today’s credit-tight economy, but you may want to exhaust this option as well.  Other lenders may charge higher interest rates, but if you can get a fixed rate over a longer period of time, you may be able to afford staying in your home.

An experienced attorney may also be able to help you explore other options for saving your home.