- After you have applied and do not meet federal guidelines for the Home Affordable Modification Program or the lender's own loan modification program, you will receive a letter in the mail stating that your application has been denied. The denial could be due to missing information, failure to demonstrate financial hardship or failure to fit within the guidelines that seek to lower your mortgage payments to approximately 31 percent of your income.
- If your income was incorrectly documented or you have failed to provide the needed paperwork required by the lender, reapply and start from scratch. Of course, it could take as long as it did the first time to find out if you do qualify, and by that time you could be in deeper trouble with your mortgage payments. Call your lender and ask about other loan options available to you. If you are behind in your loan payments, your lender may tell you that your loan is being referred for foreclosure action. To avoid this, try to bring your account current or refinance with another lender.
- List your house for sale with a real estate agent. The lender may agree to take less than the full amount owed to satisfy all or some of your mortgage debt. If you are not able to complete a short sale, ask your lender for a deed in lieu of foreclosure. You do not have to list the property for sale, but you must turn over a clear title to the property and vacate the premises once the title is transferred. This option may be offered to you to satisfy some of the mortgage debt.
- Ask your lender about other Home Affordable Foreclosure Alternative Programs for which you may be eligible. HAFA is offered by the U.S. Department of Treasury to homeowners who are unable to qualify for HAMP due to financial constraints of the program. HAFA may help you with cash to relocate after your property is sold.
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