HAMP Modification Denied? What to Do Next

Are you a homeowner who applied for HAMP modification assistance and was denied? While this is frustrating, you still have options available to you. First, you must get all your documents together. Documents such as pay stubs, W-2s and mortgage paperwork should be organized and available for you to provide. Second, review your denial letter. This will give you some insight into why you were turned away and what you can do to prevent a similar action from occurring. Third, explore your alternatives.


Two alternatives available are traditional and in-house modification programs. If you are modifying using a new mortgage company, the lender can offer traditional loan modification programs. While this may not seem like a viable option, it can provide you with the relief you are looking for. Traditional loan modification programs require there be a hardship in order for you to qualify. There are three types of traditional loan modification programs you could qualify for: interest rate, loan term and principal balance. The other alternative is an in-house modification program. Your current lender may offer in-house modification programs. The terms of the modification will vary depending on your circumstances. Before applying for any type of modification, research the requirements thoroughly.