Why was Your Mortgage Modification Denied?


Unexpected expenses are not uncommon and can lead to immediate financial difficulties. Unplanned injuries, extensive medical bills, being laid off from a job can prove to be a devastating blow to your financial health. If you have additional monthly bills like credit card and student loan debt, paying for a mortgage can feel almost impossible.

Owning a house can seem like a liability, but it should be considered a large asset and can provide a relief in times of financial hardship. Even if you don’t have significant equity built up, and are not eligible to refinance your loan, there are still creative ways to lessen the financial burden of a mortgage. If you are in a difficult position with your finances, a modification to your mortgage can be a huge relief.

Reasons Your Mortgage Modification was Denied

In the event that your application for a mortgage modification was denied, you can try again. First, it is important to understand the reason that your mortgage was denied. Several factors that could result in a lender denying a mortgage modification request include:

Your lender doesn’t believe that you can afford a mortgage – If the lender reviews your finances and determines that you are unable to pay any mortgage, they will be resistant to offering you a modification, even if the terms are more affordable. For example, if you have lost a job or are not currently pulling in any wages, and the lender decides that you are not suitable for a mortgage, they are unlikely to offer you a modification.

You are unable to provide the correct documentation for a mortgage modification application – this could be a very simple fix, especially if it is just a matter of missing documents. In other cases, there might be more advanced complications that require the review of an attorney.

You have already received a modification to your mortgage – The lender might be unwilling to alter your mortgage more than once in a specific time frame. If you have already applied for and been granted a modification to your mortgage, there is a chance your next request will be denied.

The lender believes that the current terms of your loan are affordable – In this case, the lender might be unwilling to offer you a modification of the terms of your loan. Likewise, if you have not sufficiently proven your financial difficulties, the lender may decide that you don’t truly need a modified mortgage.

If your Mortgage Modification was Denied Contact a Salt Lake City Attorney Today

As the saying goes, “if at first you don’t succeed, try again.” If you are working through the process of a mortgage modification request and have found that it was denied, you have the right to try again. An experienced home loan modification lawyer can help you with this. The legal team at JLT Law has extensive experience working with homeowners who are attempting to secure a mortgage modification. Let us help you with this process. Call us at (801) 896-9444 or contact us online to schedule an initial consultation.