Why Would A Bank Deny My Loan alteration If I Have a Valid Hardship?…


What a frustrating and demoralizing course of action-applying for a loan alteration is very often like rubbing salt into a wound. It’s not bad enough that you are struggling with high bills, loss of income, medical expenses and rising mortgage payments, now the bank is telling you that you do not qualify for a loan workout! What gives? Yes, you may have a authentic financial hardship but that is not enough-you also have to be able to fit into a specific formula for qualifying-and you’re supposed to know this? I guess so, but just how do you learn what you need to know?

The sad fact is that millions of homeowners across the country have been affected by the recession and housing meltdown. When home values were on the increase, we could simply refinance and take some equity out to help us by the rough spots. Now, with over a Trillion dollars in lost equity, that is no longer an option for most borrowers. A loan alteration is similar to a refinance, but the difference is that the original loan is alternation or changed to more affordable terms.

A financial hardship is one of the qualifications for a loan alteration, and writing a heartfelt and descriptive letter explaining what has happened will help your bank understand your current situation. However, unless you can fit into the standard guidelines for approval, you may be told that you do not qualify and that you should instead look into selling your home or signing a deed in lieu-giving your home back to the bank.

The federal loan alteration plan features a standard approval course of action. Homeowners can learn the actual formula that is used in calculating who will qualify for assistance. It is a basic mathematical formula using the homeowners monthly gross income, current loan amount, and new target payment calculation. While it can be learned, it may easier and faster to use a software program that mimics the federal formula. Then when you put in your own specific financial information, the results will be calculated automatically for you. Now you have the information you need in order to fine tune your budget so that you know it fits into the approval guidelines.

Instead of fighting the system, learn what the bank really wants and give it to them! It may not make sense to you, but if you need help to get out of your financial situation then take advantage of the federal assistance plans. already if you have been turned down, you can re-apply and this time do it right!

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