Reasons Loan Modifications are denied

Reasons why most Loan Modifications are denied. (For additional help, please fill in the form below).

The following are reasons denials occur. Please make sure you check your documentation first before speaking with your Servicer.

Most denials occur from:
1) Presenting documentation or information that does not meet guidelines.
2) Not verifying income correctly or completely.
3) Missing information either because documents were not uploaded completely by the Servicer or because the Borrower did not send a complete package.
4) Loan numbers were not written on all documents.
5) There were Missing signatures on the financial worksheet, tax returns, hardship letter or affidavit, or the 4506T tax form.
6) Modification paperwork was sent in when a repayment plan had already been put into place for the Borrower. To correct this, call and BACK OUT the repayment plan from the system and then fax in paperwork 3-5 days later (make sure to call the Servicer first to make sure their system is clear of any other plan).

Recommendation: If you are denied a loan modification, always call in and ask for the representative to look in the notes to give you an explanation of the denial. Most likely the notes will not be complete and will not give a sufficient explanation. Ask to be transferred to a supervisor or escalation area to determine the reason.

Please note: Mistakes sometimes occur in the input of numbers. Please request verification of the plan by which you are being evaluated and also verify that the Servicer has the correct numbers.

If you need additional guidance or Servicer executive level intervention, write help@operationrest.org or call the number listed under Contact Us.

This information is provided free of charge by Operation Restoration. Donations are critically needed to help this mission move forward. If this material has helped you or someone you love, please click on the Donate button below. May God bless you.
- Anne Batte, Executive Director