Homeowners who can not get a mortgage modification or refinance by using the Governments $75 billion mortgage stimulus plan, will have a hard time getting an approval anywhere. A number of different factors play into getting approved for refinancing or home loan modification such as, income, debt, credit, employment, and a few other things. Homeowners can be denied a refinancing or modification for any of the following reasons:

-The Credit Score of the Homeowners
Homeowners who have a bad credit rating or a credit score which is too low, can be denied a chance to refinance or get a home loan modification. For homeowners facing this problem, the best advice is to explain your financial problems to your mortgage lender or bank. You must be able to convince them that this home loan modification is important so you can keep your home, and get your finances back on track. If you have to, a sub prime mortgage lender can typically approve homeowners with bad credit. Although the sub prime lenders charge a higher interest rate, homeowners with bad credit may not have a choice.

-The Income of the Mortgage Holder
After the mortgage meltdown, these days, a mortgage lender and bank will make sure to throughly examine and verifying all claims of income. If mortgage lenders or banks have any questions about your income which can not be answered with evidence and proof, a homeowner can easily be denied a refinancing or mortgage modification.

-Inaccurate or Incomplete Documents and Applications
The quickest way for a homeowner to get denied a refinancing or home loan modification is when the application is incorrect or not completely filled out. This is a common problem for a lot of homeowners. When this happens, the mortgage lender or bank will not even read it, they will simply return it to you with what is needed, and then approve, or most likely deny in this case, a mortgage holders request for refinancing or home loan modification.

-The Market Value of the Home when Refinancing
Typically, mortgage lenders and banks are reluctant to approve home mortgage refinancing or modification for homes which have declined in value. Even if a home has not lost value but the surrounding neighborhood has, you may not get approved. With the housing market is such a tough condition, many homeowners are in this position. Generally, mortgage lenders and banks do not approve refinancing or modification applications for more than the homes market value.

-The Mortgage Lenders or Banks Policies
Mortgage lenders all have different policies and terms for who gets approved. Each policy is different according to the bank or lender. Typically, a homeowner must meet income, credit, loan to value (ltv) ratios, and have a little equity in the home. Even with these terms met, a homeowner may still be denied a mortgage refinancing or modification.

-M Petrone

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