Home Loan Modification Appeals–Options For Homeowners Denied Home Loan Assistance

Homeowners who are seeking federal home loan assistance from the Making Home Affordable Program have often complained that they are denied home loan assistance from their mortgage servicer for reasons that they are truly unsure of and seek to appeal the denial of these assistance plans, but many are unsure of whether they have options when a home loan modification seems unattainable. Obviously, there are homeowners who have waged numerous grievances against the home loan modification program as they feel that the process for qualifying for federal modification assistance is flawed in some cases or servicers are simply unwilling to help homeowners find more affordability to prevent foreclosure.

While there are some positive reports from home loan modification sectors within the housing market, meaning private modifications have been on the rise and, overall, federal modifications increased in 2010, there are homeowners who are denied mortgage assistance even though they feel they may qualify for a home loan modification due to financial hardships or other housing difficulties.

According to Making Home Affordable guidelines, servicers must evaluate a homeowner for a home loan modification program before beginning the foreclosure process as foreclosure prevention efforts should be explored well before the loss of a home is to take place as, again, there are numerous homeowners who can qualify for and benefit from these modification plans. Also, if a traditional home loan modification is simply unavailable, there are extension programs, like the Unemployment Program, that may be helpful for homeowners who are in a particular mortgage situation and in need of further assistance that may simply go beyond the traditional modification plan.

Obviously, there are some homeowners who simply do not qualify for the Making Home Affordable Program, and as a result a home loan modification from either a federal plan or a private modification plan directly from one’s servicer may simply not be an option. While there are foreclosure alternatives that can be explored, like surrendering the deed of a home to the servicer or selling a home at the loss, there are multiple programs currently available that should be able to prevent foreclosure on numerous homes despite various financial troubles that have arisen in countless households.

Yet, many advisers have prompted homeowners to either speak with their servicer if they wish to appeal the denial of a home loan modification, as there may be options available for a modification or for alternative foreclosure prevention efforts that could either delay foreclosure or simply give homeowners a second chance at qualifying for assistance. However, homeowners can also contact the Hope Hotline or consult a housing counselor that is approved by either the Making Home Affordable Program or HUD for either initial guidance through the modification program or assistance when a homeowner may face loss of their home.