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Attyadvisor, Attorney
Category: Real Estate Law
Satisfied Customers: 6174
Experience:  28 years of experience in General Practice, Real Estate Law and Estate Law.
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A few month ago, I applied modification, but was denied as

Customer Question

A few month ago, I applied for loan modification, but was denied as shown below: HAMP Tier 1-Denial reason: Excessive Forbearance HAMP Tier 2-Denial Reason: Insufficient Monthly Payment Reduction Standard Modification- Denial Reason: Negative Disposable
Income Mortgage $846K, house assessment, around $750K-$900K. The loan history: had the loan for 10 years, interest only, For 5 years, I had a 2.87%, last year bank increased the rate to 3.65%, I applied for modification, got denied. Now, my income decreased
a couple of hundred dollars, is there a chance that I can get it approved now? it's a duplex, I have rental income $2300 and my soc sec and pensions, $3000. should I go through the trouble and apply again?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  WiseOwl58 replied 1 year ago.

Yes, since the reason for your denial was that your income was too high, I strongly recommend that you reapply and you should meet the qualifications this time and get approved.

Please rate the answer 4 or 5 and close out the question Good luck to you. I wish you all the best.

Expert:  Attyadvisor replied 1 year ago.

Welcome and thank you for your question. Yes it is possible that a change in your financial position could impact the loan mod being approved.

Expert:  Attyadvisor replied 1 year ago.

“Re-submission may be your best option if your loanmodification has been denied for one of the following reasons:

  • Insufficient or missing documentation
  • You fell behind on updating your paperwork with your lender every month
  • You didn't resubmit documents that were "lost" by your lender
  • Missing signatures
  • Missing loan numbers
  • Incorrectly verified income
  • Incorrect NPV (net present value)

If you fall into one of these categories, then information will need to be gathered and updated prior to resubmitting for a loan modification..."

Was Your Ratio Correct?

If you believe you were eligible for a HAMP loan modification, but didn't know your DTI (debt to income ratio) or NPV and the optimal way to structure these ratios for your lender, then you were setting yourself up for failure from the get-go."

California Homeowner's Bill of Rights

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