When you’re seeking lower house payments through a loan modification, don’t lose hope if the bank denies your application. Housing counselors interviewed by 12 News say there are several ways to appeal that decision and get it reversed.
The first thing you should to after a denial is call the lender and find out why your loan mod was denied.
With help from a HUD-certified counselor, check out the reason for denial and see if it resulted from missing or erroneous information. If so, fix the mistake and re-submit. Free counseling services are available with a number of non-profit agencies, and they are experts at dealing with banks on mortgage issues.