Denied Loan Modification: What are My Options?

If you are one of the thousands of homeowners being denied for a loan modification you may be facing foreclosure and want to know your options. You may have also been denied your rights as a third party beneficiary to the HAMP government program designed to modify the terms of your loan. Additionally, if you were making trial mod payments on time then denied a permanent loan modification you might have grounds for legal action against your mortgage servicing company.

As a bankruptcy attorney I have seen it all. Until recently it’s been "too little too late" to help these people. Now…. There are options outside of filing bankruptcy and saving your home. You may just want to jump on board as many have, and sue your lender. That’s right, if you feel you have been wrongfully denied for a loan modification or your lender has misled you and pushed you down the road to foreclosure you should consider suing them for a bouquet of wrongful business practices. The trust is, the banks got TARP funds and agreed to employ HAMP for homeowners and apparently are being caused of the old “take the money and run”.

It’s unfortunate for many hard working homeowners trying to do the right thing while suffering through this troubled economy. The banks seem like they want to help, and yes they modify loans here and there, but 3% is NOT enough. To make matters worse, by the time the mortgage servicer get done losing paperwork and delaying the process these homeowners can’t qualify for a Chapter 13 to save their home from foreclosure. I mean seriously, how long it takes to approve or deny a loan should be similar to a loan modification. Lenders are required to disclose a loan now in 3 days and they should be held accountable for the same practice with loan mods. So with all this being said, what are your options if you were denied a loan modification?

1. Sue your mortgage lender
2. Short sale your property
3. Restructure and resubmit your loan modification
4. File bankruptcy Chapter 7 or Chapter 13
5. Deed in lieu of foreclosure
6. Refinance with a government loan

The bottom line here is, you do have options. Depending on your current situation you may qualify for one of the solutions above. To find out more about solutions offered by the Law Offices of Zhou & Chini or to be referred to a legitimate source if you don’t know where to turn please call my office for a free consultation. We are well versed in the area of foreclosure defense and look for aggressive solutions.

With over 10 offices in California we are here to help, call us today at 800-972-9600.