You could be stuck facing foreclosure if your loan modification is denied, even after you’ve successfully made trial payments on time and in full. Your lender is not required to modify your loan, but may accept packages for review, and even offer trial payments that provide a glimpse of hope. So, why was your loan modification denied after trial period payments?

Quite frankly, your mortgage company stands to make more money on the property by foreclosing. Rather than working with you to make reasonable monthly payments, the bank’s goal is to repossess your home, and sell it at auction for more than the remaining balance on the mortgage. Thankfully, there are strict laws protecting homeowners in California from losing their home to illegal foreclosure.

By making trial payments on a loan modification, you have been able to prove to your lender that you can afford the reduced monthly payment amount. There really is nothing more that you could do to be approved for a permanent modification, so taking legal action may be the only way to prevent foreclosure.

Should You Re-Apply for a Loan Modification?

It’s up to you if you want to re-apply for a loan modification after a denial, but typically the results are the same. If your loan modification was denied after making trial payments successfully, there really is nothing more you can do to convince the bank that you qualify. While it may seem futile, it may be worth while as lenders sometimes seem to change their decision without any particular reason.

While re-applying is up to you, we do strongly suggest that you contact a foreclosure attorney now, while you still have time to take action and save the home. Our firm works with each client to develop a foreclosure defense strategy for their situation. Often times, our mortgage litigation cases lead to loan modification approvals and even reductions in principal balance.

Your California Foreclosure Attorneys in Los Angeles

Our foreclosure attorneys have helped many homeowners save their home even after their loan modification was denied after making trial payments. Often times, our clients think that their is no hope to save the property, but our legal team is able to present a number of different defense options that can help. Call us today for a free consultation.