Homeowners are often denied when they apply for a home loan modification. However, that does not have to be the case. Most of the time, the application is denied for 2 simple reasons which can be avoided prior to filling the application in. Here are 2 most common reasons that a homeowner will get denied a mortgage modification.

Incomplete, Improper, or Inaccurate Mortgage Modification Application

By far, the most common reason applications get denied, even for homeowners with great credit, is due to a improperly, inaccurately, or incomplete mortgage modification application. Homeowners can easily avoid this by doing simple things such as proof reading, getting a copy of their credit report, and asking questions when anything comes up. A homeowner can also request 2 copies of the application, in case the make a mistake on one. Also, never lie or stretch the truth. This will slow the process down, and most often, will result in a denial. If anything in the application can not be verified at least make a not of it for the lender or bank so they do not think you are hiding anything.

Missing or having the Wrong Documents

This is another common problem many homeowners make when getting a home loan modification. Things such as income verification, bank statements, tax returns, and related information needs to be readily available, and accessible, for your mortgage lender or bank to approve your application. If you are missing vital financial, personal, or related information, make sure you get all copies of it prior to applying for the mortgage modification. This will save you a lot of time and hassle.

-M Petrone

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