There are of course a number of loan modification guidelines in place. Here are 4 common reasons why your application was denied, and what do in terms of the appropriate action to take in each scenario.

1. Lack Of Proper Documentation:

   This can be easily rectified. Find out from your lender exactly what documentation was missing from your application. Make sure that you are clear on what is needed. Then all you need to do is prepare and submit whatever documents were missing, and reapply in accordance with HAMP or in-house loan modification guidelines (or the relevant private mortgage modification guidelines, if applicable).

2. Denied Because Of Your Income:

   It’s common for a homeowner who has lost their employment to apply for a loan modification. Without income, they are unable to make their monthly mortgage payments. A lender may deny an application due to insufficient income. In this case, try getting employment elsewhere as quickly as possible. Of course, in difficult economic times like we currently find ourselves in, this can be far easier said than done. However, if you’re trying to stay in your home and income is an issue…you’ve got try and find employment as best you can. There’s unfortunately no easy way around this issue. Best of luck to you too!If that’s simply unachievable for the present, consider asking other members in your household who are earning an income to apply for the loan modification with you. This way their income can boost your application when you reapply.

3. Hardship Letter Not Acceptable:

   If your lender tells you that you were denied because of something you wrote in your hardship letter…it’s time to get pen and paper and start all over again. Remember that you must be able to support your hardship claim with documented proof. Ask your lender what the specific problem with your hardship letter is. If it’s documentation related, determine what you left out and include it when you reapply.Make sure that your situation qualifies as an acceptable hardship before you apply. Examples of recognized hardship for this purpose are (check with your lender or a loan modification specialist regarding more comprehensive details): Divorce, Death of a spouse or other family member, Job loss, Excessive debt Medical Bills, and others.

4. Claimed Expenses Don’t Add Up:

   If you’re sure your figures related to your claimed expenses are correct and that you should qualify, ask your lender if you can meet with them to go over your documents line by line. Lender representatives are only human, and humans make mistakes. This is especially of calculating financial statements. Ask them to show you exactly where the problem is, then go over it again with a fine-toothed comb. If you do discover an error on your part, make the necessary correction(s) and then reapply.

Now you have a good idea why your loan modification may have been denied and what to do to apply again and increase your chances of qualification. Please make sure to also contact your lender to find out why your application was denied according to their guidelines and their perspective as the four reasons listed above may not be your case.

You also know that there are several ways to fix any problems before reapplying. Fortunately, there is no limit to how many times you can apply for a loan modification. The old saying, “If at first you don’t succeed, try try again” should instead in this case read as, “If at first you don’t succeed try, try, again and again and again!”

You’ve spent a lot of time and energy gathering documents, writing your hardship letter, and doing everything you needed to apply. You may be applying on the basis of Chase loan modification guidelines or Bank of America loan modification guidelines, or whoever the lender in question is. Your loan modification qualification guidelines may be based on the Making Home Affordable program, or not. Application rejections take place, but it’s no reason to give up.

If you need loan modification help, consider a loan modification service that is effective in helping you correct all the problems that got you denied in the first place. You worked hard to buy your home. Now you’ve got to be willing to work even harder to keep it. To do that, you should check out our loan modification software here on MyCaal.com because we have designed it to be extremely intuitive to use. You don’t have to be a financial whizz or to understand complex economic concepts in order to benefit from the empowering features of this online tool. For a very affordable rate of only $98.00, you can increase your chances loan modification helpof qualifying for a loan modification and get it approved by preparing a pre-qualified loan modification application that is illuminated with clarity and accurate information and expectations. With MyCaal loan modification software, you will get a faster and more favorable response from your lender.

If you find yourself in a situation where your mortgage payments and other debts are more than you can cope with, Bankruptcy Chapter 13 information may become of great interest to you, or Chapter 7 information for that matter. In this scenario it’s important not to make hasty decisions, and that all options are carefully considered, including loan modification. The option that is best suited to you will depend greatly on what your objectives are, and if you opt for the restructuring of your mortgage, there is comprehensive loan modification help available to you.

Here are some details on bankruptcy options and information on loan modification after bankruptcy:

• Chapter 7 bankruptcy:
  This option allows you to discharge the debt associated with your mortgage. It means that you walk away from your mortgage commitment free and clear. You are not expected to make further payments to your lender, and they are free to initiate foreclosure procedures. You may escape the need to make any further payments to your lender, but you will effectively lose your home once the foreclosure process is complete.
• Chapter 13 bankruptcy:
  With this approach, your mortgage debt is not discharged. You will be permitted to maintain the ownership of your home as long as you are able to continue making your loan payments at the appointed time. Additionally, your loan payments will be decreased as part of the Chapter 13 process.
• Loan modification after bankruptcy:
  Is this possible, you may ask? The answer is ‘yes’. In fact, you are able to obtain a loan modification during bankruptcy as well. It’s important to bear in mind that the results of your loan modification approval will differ depending on the stage of the bankruptcy process in which you make your application. The outcome will also depend on whether you are pursuing your loan modification with a Chapter 7 or Chapter 13 bankruptcy pending.
• To reaffirm, or not:
  In the event that you decide to reaffirm your mortgage (meaning that you agree to be responsible for the same mortgage amount that you have already been released from through a Chapter 7 bankruptcy), you will have to obtain the authorization from a bankruptcy court. The majority of bankruptcy lawyers would caution against reaffirming your home loan.

The legalities relating to a loan modification in bankruptcy mode can be a bit overwhelming. Obtaining a referral from a trusted source for a good bankruptcy attorney is worth considering. It makes sense to benefit from the positive experience of someone who has taken a similar path before you. A suitable professional will help you understand how the bankruptcy process impacts on your loan modification options.

If, as a homeowner, you find yourself in the situation where your mortgage is underwater, you know what a disheartening situation it can be. You may be thinking about trying to identify a good principal reduction program.

Here are details and definitions related to principal reduction programs that shed some light on why it’s become so important and necessary for so many homeowners, how it works, and how it can be achieved:

• Underwater mortgages (A word on the problem):
  Just to clarify, what do we mean by referring to a mortgage as being underwater? It’s also referred to as an upside-down mortgage, or a negative-equity mortgage. It refers to a situation where your home is worth less than the amount that you owe on it. It drastically undermines the investment potential of your home, and makes it very difficult to obtain refinancing. If this situation is true for you, make no mistake, you are one of millions of homeowners in this country who share your burden.
• What’s the cause? (A word on how we got here):
  When the housing market bubble burst, so did consumer consumer confidence along with it, and homes sales figures plummeted across the country. With an abnormal increase in the supply of homes for sale, and not enough people purchasing them, home values across the United States steadily started to fall. Of course, just because house values are falling, does not mean that the associated loan amounts are kind enough to decrease as well, and therefore, we have the problem that we have today.
• Principal Reduction Programs (A word on what it entails):
  What this entails is principal balance reduction. It in effect means that a portion of the mortgage is written off. When principal reduction takes place, it brings the size of the mortgage more in line with the depreciated value of the home, and also results in reduced mortgage payments because less loan is being repaid over the same period of time. This kind of mortgage principal reduction can take place as part of a loan modification which is intend to provide you with sustained and significant mortgage relief if you’re a homeowner struggling to avoid foreclosure.
• Principal Reduction Alternative (A word on a federal offering):
  This is a program offered by the Federal government as part of its Making Home Affordable initiative. The program is intended to motivate servicers and lenders to make principal balance reductions available to homeowners with underwater mortgages. Eligibility for the program is dependent on a number of criteria including: your mortgage is not owned or backed by Fannie Mae or Freddie Mac, your mortgage is underwater, you occupy the house as your primary residence, your mortgage took effect on or before January 1, 2009, your loan payment is over 31% of your gross (pre-tax) monthly income, you owe a maximum of $729,750 on your 1st mortgage, you can document real financial hardship, you have enough, documented income to cope with the modified payment, and you must not have been convicted within the past decade of felony larceny, theft, fraud or forgery, money laundering or tax evasion, related to a home loan or real estate business deal.
• Loan modification (A vehicle for possible principal balance reduction):
  If you’re a homeowner whose mortgage is underwater, you may need to talk to your bank about a loan modification that enables you to benefit from some kind of principal reduction program. There are a variety of loan modification options that are available through federal initiatives as well as private, in-house options offered by lenders themselves. Getting a principal balance reduction program to work in your favor can put you in a much more affordable financial situation.

All loan modification programs are not created equal. It’s important to make use of loan modification help that is able to provide you with assistance that is both thorough and accurate. Frankly speaking, you will not encounter a service that does this more effectively than Mycaal.com loan modification software.

What characterizes a product or service that exemplifies excellence? It has to do with how effectively and thoroughly it addresses the need of the customer, and what kind of support is provided in association with it. The same is true of the various types of loan modification help that are available. Choosing a loan modification strategy wisely can mean the very real difference between approval and rejection. Here are 4 things to consider when identifying superior loan modification help.

1. Understanding:
   What kind of empathy has gone into the designing of the mortgage loan modification help that you are considering signing up for? Why is this important at all? Well, it’s important because if the creator of the service on offer is intimately familiar with the frustrations inherent in the conventional loan modification process, he or she is better positioned to pioneer a delivery platform that gives you the most comprehensive assistance possible. Experience tends to give rise to compassion, and it’s this kind of sincerity that results in a service that is truly remarkable.
2. Real-world expertise:
   You need a lot more than just some glorified paper-pushing, application delivery service. With informed and expert support in your corner, the loan modification application process is a lot simpler than you may suspect. Without that kind of support, you are at the mercy of a procedure that is enough to intimidate and confuse anyone. Ideally, you want to be receiving instruction from someone who has been through and conquered the loan modification application process. It’s the difference between someone who merely talks the talk, versus someone who walks the walk. If you’re wondering how to qualify for loan modification, this is the best way to go about it.
3. Accurate pre-qualification knowledge:
   One of the biggest problems with typical loan modification processes is that you have absolutely no idea how your circumstances stack up in terms of being pre-qualified for the modification you are hoping to obtain. If you are able to submit your application having an accurate idea of what you are entitled to, you are able to do so with confidence, and you are empowered to communicate boldly with your lender. This is the kind of authority that effective mortgage modification help must be able to provide you with.
4. Easy of use:
   How intuitive is the service that you have signed up for? Does it break down complex and intimidating subjects into easy to understand pieces? Is the service available to you at a price that is incredibly easy to cope with. You’re trying to save your home after all. You don’t want to be forking out thousands of dollars on a gamble. Comprehensive loan modification help should add value to your life, not add to your already heavy burden.

These are the kinds of benefits, and more, that you can expect to enjoy when submitting your loan modification application with the aide of the innovative MyCaal loan modification software. Mycaal.com was created and engineered by a homeowner who, like you, came very close to losing her own home. It proved to be the instrumental factor in saving its creator’s home, and it can do the same for you. Explore the benefits of Mycaal.com today and avoid the common loan modification problems and complaints.

Numerous homeowners who have applied for a loan modification have had their application repeatedly denied. In a great number of these cases, the reason for the rejection is that some aspect of their application was not completed in a comprehensive or appropriate manner. Mistakes related to the creation of the hardship letter have cost many applicants the loan modification approval that they are hoping for.

The loan modification hardship letter is without doubt one of the key aspects of a strong loan modification application, and it’s useful to make use of a solid sample hardship letter in the course of preparing your own. The focus is on adopting an approach that is time-tested and that has proven effective for other applicants. There’s no need to completely reinvent the wheel here. Of course, your circumstances will be unique to you, but the underlying criteria that make for a good hardship letter are universal.

For more information on how to craft a winning hardship letter, we invite you to take a look at our article entitled “Loan Modification Hardship Letter”. While it’s true that an effectively written hardship letter cannot guarantee you a loan modification approval, it can certainly stack the deck in your favor and increase your chances of obtaining the result that you need and hope for. The point is to take all the aspects of your application that you have control over, and to do whatever is in your power to put your best foot forward.

What’s so important about this letter anyway, you may ask? Well, a key component of obtaining a loan modification is being able to convincingly demonstrate to your lender that you are facing circumstances that are beyond your control that are making it impossible for you to cope with your current mortgage arrangement. Your hardship letter represents a key component as it relates to achieving that objective.

For specific information on what a good sample loan modification hardship letter may look like, check out our article entitled “How To Prepare A Hardship Letter”. It will give you an idea of the kind of approach and tone you can adopt when communicating with your lender.

Your loan modification application does not have to be left to luck or chance. If you do what you can to prepare your application as thoroughly as you can, you place yourself in a much stronger position than if you didn’t. A sample hardship letter for loan modification can help you do that, and with the support of the innovative Mycaal.com loan modification software, you’re well on your way to submitting an accurate and complete application package with expert loan modification help.

As part of your complete loan modification application, your hardship letter is an integral part of the puzzle. You need to be able to demonstrate in no uncertain terms that you are facing financial hardship that is making it impossible for you to cope with your current mortgage obligation. There are a number of important criteria to bear in mind as it relates to how to write a hardship letter.

It will be well worth your while to make every effort to craft a letter that strikes a great balance between conciseness and thoroughness. You don’t want to lose the attention of the ready because it’s too long, but on the other hand, you want to be sure that you are highlighting your circumstances adequately. This is just one aspect of your application that you can get expert guidance in when using empowering loan modification software. There are a number of examples of hardship letter submissions out there, but many of them are just plain misguided.

The following is a hardship letter sample that should give you a good idea of the tone and content that you ought to be aiming for:

­_______________________________________

Name: (Your Name)
Address: (Your Address)
Lender Name: (Your Lender)
Loan #: (your Loan #)

To Whom It May Concern:

I am writing this letter to shed light on my unfortunate set of circumstances that have made it impossible for me to cope with our mortgage payments. I have done everything in my power in an effort to make ends meet, but unfortunately I have been unsuccessful and would like to request your consideration in working with me to modify the terms of my mortgage. It is my earnest desire to keep my home, and I would sincerely appreciate the opportunity to do that.

The primary reason that has resulted in financial circumstances that I’m unable to cope with is (mention the reason here, and remember to be concise, yet thorough). The situation has deteriorated steadily over time and I have fallen further and further behind. The point has now been reached where I cannot afford to keep up with my mortgage payments. I have every intention of honoring my mortgage commitment, but at this time I have exhausted all of our income and savings and I am therefore turning to you for assistance.

While my income is steady, it is no longer at a level that allows me to cope with the existing terms of my loan. I feel that a loan modification would be of great benefit me. I would appreciate if you would be willing to work with me to secure a modified monthly payment that I can realistically manage.

I truly hope that you will assist me. I am anxious to get this settled so that I can move on with my life and keep my mortgage intact.

Sincerely and Respectfully,

Borrower’s Signature
Date
Co-Borrower’s Signature
Date

Probably the quickest way to damage your chances of obtaining a loan modification approval is to provide information that is inaccurate, whether doing so knowingly or not. The financial worksheet for loan modification is one of, if not the most important element of your application. It’s crucial that you provide information in response to it that is correct and thorough.

The loan modification financial statement requires that you clarify various issues related to your income and expenditures, and that you do so correctly. It’s common that homeowners unknowingly misrepresent their income on this form, and the result can often be a loan modification rejection. Even the underwriters employed by financial institutions have been known to misunderstand some of the concepts and have jeopardized homeowners’ applications.

1. Common pitfalls – One common problem area has to do with the way in which the applicant represents his or her gross income. This is especially true of those who are self-employed. Gross revenue derived from a business is not the same as gross income. This is an issue that is confused on many applications, and it can lead to an outcome that is inaccurate and unfair. Another aspect of the loan modification submission form that deals with a homeowner’s financials that is often confused has to do with the correct way in which to represent income derived from rental properties. Just because you bring in some income from a rental property, does not mean that that income must be added to your gross income amount. This is not necessarily the case. Once again, this is an issue that numerous bank underwriters fail to understand properly.
2. Embracing expert support – When it comes to submitting your application, you can do you on your own merit without any form of assistance, or you can ensure that you receive the insightful support of expert loan modification help. It makes perfect sense to opt for the latter approach, especially when the support in question is incredibly affordable to make use of. This is where expertly designed loan modification software can be extremely helpful and effective.
3. Software engineered for efficiency – Mycaal.com has been designed based on in-depth research and analysis into the loan modification process. It has been created in such a way that every possible component of the application is comprehensively addressed, ensuring that the package you submit to your lender lacks nothing and is 100% accurate. You can have complete peace of mind that the financial worksheet you are submitting covers every conceivable base, and while you’re at it, you can get what no other loan modification software on the market is able to provide – accurate, advanced knowledge of your pre-qualification status.

Don’t settle for a gamble regarding any aspect of your loan modification application. As you know, the stakes are too high, and it’s important to make certain that no part of your application is left to chance. With MyCaal software in your corner you are empowered to pursue your loan modification goals with all the support and tools you need.

If you were to do a survey among the millions of American homeowners who have in the past, or are in the process of applying for a loan modification, you will very quickly discover that the process of obtaining one is far from perfect. In fact, it can be a downright nightmare, and it has already resulted in the utter disillusionment and frustration of a great number of Americans.

The conventional application approach places a lopsided amount of power in the hands of the banks and lenders, while the homeowners are left with no choice but to fumble around in the dark, at the mercy of a process that is far too complex and confusing. The need for effective loan modification software, web based, has never been greater.

1. Knowing where you stand – If you’re familiar with the typical loan modification process, you know that you submit your application having absolutely no idea what your chances of approval are, or what you are entitled to based on your financial situation. It means that the process of applying for your loan modification is consumed by uncertainty, worry, stress, and confusion. Mycaal.com offers the only loan modification processing software that provides you with an accurate understanding of your pre-qualification status, before your application is ever received by your lender. If you know where you stand, you know what you qualify for, and you are emboldened and empowered to fight for it.
2. Knowing who to trust – Wouldn’t it be great to benefit from loan modification software that was designed by someone who knows exactly how you feel with the threat of foreclosure breathing down your neck? Wouldn’t it be great if that software was created with that kind of empathy and understanding in mind? Not to mention that the software itself is unbiased, so there is no risk of receiving counsel that is motivated by greed or some other dishonorable ambition. With Mycaal.com, all these benefits and more are yours.
3. Knowing what to prepare – This is an effective application for loan modification defined: having crystal clear understanding about exactly what information and documentation is required, and knowing exactly how to prepare and present it. It’s an approach that ensures you provide your bank with everything it could possibly need, resulting in a process that is far more streamlined and expedient. It’s an approach that you benefit from when using MyCaal.
4. Knowing what to spend – Obtaining a mortgage loan modification is not supposed to cost you thousands of dollars. Not when you’re struggling to hold on to your home in the first place. Expert, comprehensive assistance should be yours to benefit from at a price that is suitable to practically any budget. It’s just another reason why Mycaal.com is such an extraordinary service on the home loan modification landscape.

If it sounds like we’re enthusiastic about the service we are offering, that’s absolutely right! It is one of a kind in its ability to provide you, the homeowner, with complete loan modification help that is affordable, convenient (prepared and stored in one online location), empowering and thorough.

There are those who would swear that if you desire to give your loan modification application the best chance of success, that you owe it to yourself to use the services of a loan modification company. Well, here at Mycaal.com our response is, “Really?” Let’s explore that notion just a little bit.

On the plus side – OK, there are some legitimate loan modification companies out there (you’ll also come across a good loan modification attorney from time to time) who are able to provide you with useful insight into the loan modification process. If these companies are offering an honest and professional service, they are potentially able to lend a greater level of preparation and accuracy to your application than if you were to go about it yourself, generally speaking. Bottom line: working with a professional loan modification company in obtaining your home loan modification certainly has some merit.

Downhill from there – Once you take into account the fact that there are some loan modification companies out there offering a decent service, the list of reasons that might make you hesitant about using them start to stack up:

• Trust – Keep an eye on real estate headlines and you’ll see that stories about scams involving so-called loan modification companies are crawling out of the woodwork. It’s an unfortunate reality that when conditions prevail in which people suffer, there are always those crooks who appear who think nothing of exploiting the desperation and helplessness of people by promising solutions that they have no ability and/or willingness to deliver on.
• Cost – Pursuing your mortgage loan modification through this avenue is most likely going to cost you quite a few thousand dollars. This is something that demands serious consideration when the whole point of a loan modification program is to provide you with relief from overwhelming financial commitments.
• Options – Meaning, you have them. It’s not like utilizing the services of a loan modification company is the only strategy available to you. By no means. In fact, there is an option available that can provide you with superior benefits on all fronts to what you’ll receive through these kinds of companies, with absolutely no drawbacks whatsoever. When it comes to accessing the best possible loan modification help, you are able to make use of innovative loan modification software that is able to trump the services offered by a loan modification company, across the board.

There is no reason for the loan modification process to be intimidating, expensive, confusing or overwhelming. All you need is the right tools at your disposal, in the form of empowering loan modification software, coupled with expert support, and you’re on your way to preparing and submitting the best loan modification application possible.