what happens after your denied a mod

[vlaho]

Hello, my wife and I called CITI and were approved for a trial and made our first reduced payment and returned all modification paper work 2 weeks ago.
We are both working my wife is self employed and has taken a big hit this year and with growing credit card debt and house expenses its been very, very difficult. If we are denied for any reason will the bank foreclose on our house? Also, if we rent our house out, or borrow money from family and are able to resume regular monthly payment amount before the trial amount can we keep our existing mortgage?
We dont want to loose our house, we put a lot of time into it.
Please help.

[Evan Bedard]

Hi vlaho welcome and thank you for joining.

We are both working my wife is self employed and has taken a big hit this year and with growing credit card debt and house expenses its been very, very difficult. If we are denied for any reason will the bank foreclose on our house? Also, if we rent our house out, or borrow money from family and are able to resume regular monthly payment amount before the trial amount can we keep our existing mortgage?
We dont want to loose our house, we put a lot of time into it.

Well if you happen to get denied for a permanent modification after the trial period you can always reapply for a traditional modification. I have seen many get denied and the trick is to just keep trying. It is most definitely possible to get a modification even after you have been denied before.

Also if it comes down to it and the lender will not provide any assistance you can always go for plan b like you stated. Either borrower money to make the regular mortgage or rent it out so you can keep the property.

[vlaho]

Thank you Evan. I was not sure if the bank see's you can not afford the regular payments and they will foreclose rather then accepting the mod. If you can tell me what is the difference with a permanent and atradional mod?

[Evan Bedard]

Thank you Evan. I was not sure if the bank see's you can not afford the regular payments and they will foreclose rather then accepting the mod. If you can tell me what is the difference with a permanent and atradional mod?

Well those are actually the same. What I meant was if you are denied for the HAMP program you can always ask for a regular loan modification. With this there is not as many guidelines as the HAMP and you do not have to go through a trial period to get a permanent mod. If you read around the success section you will find some stories of homeowners acheiving regular in-house modifications.