Your Mortgage Modification Application Was Denied – What Do You Do Now?

foreclosure defense attorney on Long IslandIf your mortgage modification was denied you are in good company. Very few people are actually successful in getting mortgage modifications. Individuals obtaining mortgage modifications have often submitted applications two or three times before they are eventually approved.

Preliminary Approval of a Mortgage Modification

Even if you receive a preliminary approval of a mortgage modification this may not mean you will receive a permanent mortgage modification. A significant portion of families receiving preliminary mortgage modifications make their payments for a period of between 3 and 6 months and then receive a letter from the bank stating they have decided not to give them a permanent mortgage modification. However, if you receive a preliminary mortgage modification and you decide to go forward with the modification, you should make your monthly mortgage payments in a timely manner.

Making monthly mortgage payments even though your mortgage payment may be less than it originally was, may still place a financial burden on you. Should you have other bills outstanding such as credit card bills you can no longer afford to pay, once you have obtained the mortgage modification you may be able to file a Chapter 7 bankruptcy and eliminate your payments on the unsecured debts such as credit card bills, medical bills, bills to cell phone companies, doctors, dentists and other types of unsecured debt.

Second Mortgages

If you are successful in obtaining either a preliminary or permanent modification of your first mortgage, you should then submit an application to the financial institution which holds your second mortgage. The fact that you are approved for a first mortgage modification will have an affirmative impact on the second mortgage lender and will make that mortgage modification application more likely to succeed.

Foreclosure Defense

If during the mortgage modification submission process or after you are turned down, the bank threatens to put you into foreclosure it is time to hire a foreclosure defense lawyer. During the course of a foreclosure lawsuit, the parties are subject to mandatory foreclosure court conferences. During these court conferences pressure can be placed on the financial institution to grant a mortgage modification even if you were turned down several times in the past. In addition, there are numerous affirmative defenses, and counter lawsuits which can be brought against the financial institution to either get the foreclosure dismissed or to motivate the financial institution to reconsider providing you with a mortgage modification.

Foreclosure Lawsuits

Even if you never receive a mortgage modification, the foreclosure lawsuit can be tied up in court in the Metropolitan New York area for anywhere from 4 to 6 years. This would give your family a substantial period of time to continue living in your home. In most situations the bank will still have to continue paying the taxes on your home and the casualty insurance on your home even though you are not making your mortgage payments.

helping homeowners stay in their homesIf you have questions or issues concerning your mortgage and/or foreclosure issues, contact the foreclosure defense lawyers at the Law Office of Elliot Schlissel. We can be reached at 1-800-344-6431, 516-561-6645 or 718-350-2802.

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We represent individuals throughout the New York Metropolitan area with divorce and child custody, personal injury, car accident, wrongful death, estate administration, nursing home and medicaid issues

The information you obtain at this website is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your particular legal issue. This is attorney advertising.

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