Q: How can I find out why Bank of America rejected my loan modification application

Question: I thought I did everything Bank of America wanted to apply for a loan modification, but I got denied and they won’t tell me exactly why. How can I find out why the bank rejected my loan modification application?

Answer: Banks are repeatedly turning down good loan modification packages for a few important reasons.

1. Borrowers are not showing positive cash flow on their budget
You can no longer have negative cash flow on your budget.

2. Borrowers are not providing any upfront money
Banks want to see some cash and they are looking for some upfront payments.

3. The bank has made a mistake in qualifying you for the loan modification.

4. You are too early in the foreclosure process. Banks have statistical data that places a borrower in a group that is more likely to cure the loan without them giving you any concessions.

Mike Rockwood has modified five of his own loans, including his personal residence and investment property. He has created a top-notch workbook to walk you through the steps of fighting to get the best terms on your loan modification.

Click here to get proven help with your home loan modification

Here’s a couple of strategies to use:

Strategy #1: Loan modification author expert, Mike Rockwood, suggests this phone call strategy to get the bank to tell you why your package has been denied.

Call the bank back at least five times to ask why your package was denied. When you do call back each time, make slight changes each time regarding what you are able to do such as increase the amount available for a repayment plan by $500, for example, or increase the household income. This strategy gives the rep a reason to go into your file.

Strategy #2: If you don’t have cash saved to make some upfront payments and you have a fanniemae , freddiemac or FHA loan, there are there are two programs available to get some cash.

1. HAS Program for fanniemae insured loans

HomeSaver Advance™ (HSA) is an unsecured personal loan, up to the lesser of $15,000 or 15% of the original UPB, designed to help eligible borrowers cure their first lien mortgage loan delinquencies. It provides funds to cure arrearages of principal, interest, taxes, and insurance (PITI), as well as other advances and fees. HomeSaver Advance is documented by a borrower-signed promissory note, payable over 15 years at a fixed rate of 5% with no payments or interest accrual for the first six months.

Click here for more details on fanniemae’s website

2. Partial Claim Program

You may be able to obtain an interest-free loan from the U.S. Department of Housing and Urban Development (HUD) to bring your mortgage current. You may qualify if your loan is at least four months delinquent, but no more than 12 months delinquent, and you are able to begin making full mortgage payments. If your loan is in foreclosure, the servicer could take it out of foreclosure to do a partial claim.

When you lender files a partial claim, HUD will pay your servicer the amount necessary to bring your mortgage current. You must execute a promissory note, placing a lien on your property until the note is paid in full. The note is interest-free and is due if you sell or leave your property or when your mortgage matures.

Click here for more details on getting a partial claim

Partial claim option pdf

Before completing and sending in a loan modification package, you may want to obtain some coaching to combat the stall tactics banks/servicers are using to cut to the front of the line of other applications and get approved faster

Click here to get proven help with your home loan modification

Homeowners – Need Some Sound Advice?

Get Out of Debt Workbook Seasoned debt expert shares several little known but highly effective techniques guaranteed to get you out of debt fast – no matter how much you currently owe.

Stop Foreclosure Get more help on fighting to stop a foreclosure with one of 7 options. For example, if a loan modification is not an option learn about a little-known government program that will stop a foreclosure in less than a day without an expensive attorney. Also get the latest foreclosure news around the country, read Q&As and other resources. Legally Restore Your Credit If you are visiting this blog, you likely have mortgage lates, which are a big blemish on your credit report. Once you resolve your mortgage situation, you can legally remove those mortgage lates and all derogatory credit from your report without having to hire an expensive attorney or credit repair service.

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Related posts:

1. Bank of America rejected loan modification despite mediation help
2. Q: How do I get Bank of America to do a home loan modification?
3. Q: Do home loan modifications get approved by Bank of America?
4. Bank of America planning more principal reductions to qualified homeowners
5. Bank of America to clarify HAMP terms for customers

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