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Loan Modification Articles

Received A Denied Loan Modification, Now What?

ByJoshua Denbeaux January 16, 2023February 11, 2025

Even after you receive a denied loan modification, you may still have other options to avoid foreclosure and keep your home.

Homeowners can be denied a loan modification for multiple reasons, but it can be as simple as filling out the application incorrectly. Just one mistake can make a difference in whether or not you get approved for a loan modification. Working with a loan modification attorney may help ensure your application is filed correctly and efficiently. An attorney may be able to negotiate with your lender on your behalf regarding more complex issues as well.

Denbeaux & Denbeaux Law has helped thousands of homeowners going through foreclosure. Our approach has helped our clients obtain mortgage loan modifications, dismissals of foreclosure actions, cash-for-keys settlement offers, and much more. Contact us today for a free consultation to learn how we may be able to help you.

What to Do if a Loan Modification Is Denied?

Just because your loan modification was denied doesn’t mean you’re out of options. Homeowners have the right to know why a loan modification application was rejected. Once you receive the loan modification denial letter, you should look for the reasoning behind the denial. An explanation should be provided in the letter. If the reason is fixable, such as missing information from the application, then all you have to do is reapply. 

However, there are other instances when a loan modification is denied that are harder to fix or not fixable at all. Here are other factors that could impact whether your application is denied or approved:

  • Delinquent credit 
  • Insufficient income
  • Loan-to-value ratio
  • The maximum amount of loan modifications
  • Missing information
  • Servicer errors

A common reason for denial stems from the mortgage servicer themselves and is entirely out of your hands. Mistakes by mortgage servicers are more common than you might think. They may violate homeowner rights, which can hinder the loan modification application, such as not processing the application on time or telling the homeowners they must be in default to qualify. 

If you feel your lender has committed any servicer violations, you should immediately contact a loan modification attorney to fight against wrongful foreclosure. 

If you wish to appeal, you should contact your servicer immediately because there will likely be a time frame that dictates when you need to turn the appeal in. This is a time-sensitive matter, so don’t wait to take the next step. 

Even if you’ve been denied a loan modification, you may find peace of mind knowing you have other resources to help you avoid foreclosure and save your home, like selling your home in a short sale or working with an attorney to fight the foreclosure.

Homeowners have the right to fight against foreclosure. Just because you got denied for a loan modification once doesn’t mean you can’t apply again or that you don’t have other options to stop foreclosure. 

Contact a Loan Modification Attorney Today

As complicated as foreclosure can be, it can be even more complex going through it alone. Having the right help may ensure you’re exhausting all resources available to save your home. At Denbeaux and Denbeaux Law, we are dedicated to helping our clients determine the best course of action to delay or avoid foreclosure altogether.

Contact Joshua Denbeaux today for a free consultation to learn how you may be able to save your home from foreclosure, even after receiving a denied loan modification.

Joshua Denbeaux

Attorney

Joshua Denbeaux is a Partner at Denbeaux & Denbeaux, concentrating his practice on financial consumer rights issues and foreclosure defense. He has substantial experience in legal matters related to foreclosure, loan modification, debt collection, and the prosecution of cases related to predatory lending. Mr. Denbeaux received his law degree in 1994 from Seton Hall University after completing his undergraduate work at The College of Wooster. Mr. Denbeaux is licensed to practice in the United States District Courts for New Jersey.

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Denbeaux and Denbeaux is a family-run law firm that represents the under-represented. The firm primarily practices mortgage, consumer protection, automobile, and repossession litigation.

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