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  1. #1
    Join Date
    Nov 2009

    Default Foreclosure After Denial of Loan Modification

    My question involves a foreclosure in the State of: Arizona

    After many months and many, many calls with both lenders and various Loan Modification firms including HUT, all hopes gone for a technicality of the original loan setup. Original loan was constucted based on the 80/20 loan and loans are with separate lenders. For that reason I am not qualified to an of the modification programs because my debt to income is not reached. However, if both combined I am at shy of %50. With a family of 5 and one income (proven many times), both lenders have denied modification.

    I am going in forclosure but what bothers me the most is that lately i have received several calls from 3rd party financial companies claiming that they are calling on behalf of my landers. Fine. I was willing to talk to them but what I wasn't prepare was to nickle and dime with them on my finances when clearaly it wasn't anything more we could have done.

    I am curious if these people really think we are so stupid to think the past events. All have taken our money (from realtors all the way to the top), got their bailout money after them alone screwing up the market by inflating the home prices and milions of bad loan practice, are they expecting us to nickle and dime with them and force us to keep homes now at half of the values?

    What am I doing wrong? Many sites are showing how lenders are more then willing to work with home owners? Is it better to forclose?

    Any help would be greatly appreciated.


  2. #2
    Join Date
    Sep 2005
    Behind a Desk

    Default Re: Foreclosure After Denial of Loan Modification

    Usually when a lender won't work with a borrower, it's because the borrower doesn't meet their financial criteria for loan modification. Unfortunately I know nothing about your lenders or their specific rationale.

  3. #3
    Join Date
    Nov 2009
    New York

    Default Re: Foreclosure After Denial of Loan Modification

    Sir! As an option it may be possible find some lenders/investors who can buy your loans from your lender in exchange for some payment plan with you. There are some other options as well… I don’t know your current situation. May be you can sell the house and get at least something instead of foreclosure; may be you can temporary give up the house by renting?

  4. #4
    Join Date
    Nov 2009
    Fort Lauderdale, FL

    Default Re: Foreclosure After Denial of Loan Modification

    While you may not fit into any of the Government Modification Guidelines keep in mind that your lender does have the power to modifiy any and all terms of your loan. They just need the proper persuation. A reputable attorney with experience in loan modifications, work-outs and Foreclosure Defense will typically perform a forensic loan audit to find errors omissions or actual violations of law to utilize as leverage in the negotiation of a loan modification.

    If the home is already in foreclosure the first move should be a foreclosure defense or possibly bk to protect the home while a modification is attempted.

    I represent a nationwide law firm (not a loan mod company) and I am sure there are many others out there that would be willing to look at your circumstances. Always do your due diligence in checking out a firm.

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