Loan modifications provide homeowners with options for saving their home and their credit when things get tough. However, loan modifications are not guaranteed, and many times, a rejection isn't justified. Because these modifications happen at times when you don't have a lot of leeway, you need to take action immediately to ensure your financial situation doesn't take a turn for the worse.
Start With Legal Advice
It's common for people to gather information and then seek legal advice about lawsuits or appeals, but in the case of a loan modification, contact a lawyer as soon as you can. You need to handle the situation carefully and quickly, and you don't have time for mistakes. Getting a legal consultation up front gives you a better idea of how to approach the situation and what information you'll need. And, it gives you a legal contact should the case escalate to the point where court might be a good idea.
Gather All Documentation, Including Emails and Mailing Receipts
If you haven't done so already, gather all your documentation. Make copies of letters, print emails, take screenshots of text messages, and so on. You want to create a solid timeline showing when you mailed your application (or otherwise submitted it, if it was online). You need to show records of all communication, even if what you have is a notebook filled with times and dates of phone calls.
What you're trying to do is show that you applied within a reasonable time frame and that you kept in contact with the mortgage servicer, sending in all paperwork as requested. The lawyer you work with will check this information to see if a servicer violation might have been behind your loan modification rejection.
Go Over All Numbers
Make sure the servicer used your correct income in its calculations for your application, especially the net present value, which tells the servicer whether it would be financially worth it to approve the modification. One error in the net present value can turn a good application into an erroneous rejection. Problems like using the wrong income amount or making other math errors are common. You need to be sure that your rejection wasn't based on servicer error.
Your lawyer can help you sort through all the paperwork and whatever else you need to appeal the rejection. You need to work fast, and a lawyer who works with loan servicer problems can help you stay on course. Contact a firm, like Ellen Lawson Law, for more help.