The purpose of proving your income to the lender is to show where you went through financial difficulties and how you recovered. Your lender may either approve or deny your appeal. Lenders typically review a borrower’s financial situation by relying on a snapshot in time. You are usually denied when you fail to demonstrate that you were having financial hardships and that you have recovered from them.
Lenders are legally required to state their reasons for denying your request for a loan modification in a denial letter. Before you go to appeal a loan modification denial, you need to understand the denial letter. A Short Sale Lawyer will help you digest the reasons for your denial.
In some cases, you may qualify for mediation. The difficulty with appeals is that you are not in a position to know what your lender is thinking. Mediation allows you determine what your lender is thinking by asking them questions about the reason they turned down your loan modification appeal. When you know your lender’s mind-set, you are best placed to respond accordingly.
After identifying the reasons for your denial, a Short Sale Lawyer of Nassau County will ensure that your appeal is in response to the reason you were denied. The two basic types of appeals are:
For example, if your loan modification denial was based on affordability or debt to income ratio, your lawyer will use an income review when appealing. An income review helps identify miscalculated income. To appeal due to miscalculated income, you need to show increased or decreased expenses, changing income, and profit and loss among other factors. To know more about your options, get in touch with us!
