I applied for a loan modification or other options to avoid foreclosure, but was denied help. My lender said I didn’t meet the qualifications for help. Can I appeal?
It depends. You can ask for a review of a denied loan modification if:
- You sent in a complete mortgage assistance application at least 90 days before your foreclosure sale; and
- Your servicer denied you for any trial or permanent loan modification it offers.
You can only appeal when you’re denied for a loan modification program. Your servicer does not have to review decisions about other loss mitigation programs like a short sale.
Your appeal needs to be submitted within 14 days after the servicer denies your application for a loan modification. The servicer has to assign the review of your appeal to someone who was not responsible for the initial decision and must give you a response in writing within 30 days of your appeal.
If the servicer denies your appeal you cannot appeal further. If the servicer decides to make you an offer after reviewing your appeal, you’re entitled to 14 days to accept or reject that offer.
Sometimes you might be considered for more than one loan modification program. Let’s say your lender denied you one loan modification program, but offered you others. You then appealed the denial, but your lender upheld its original decision. In this case, you would have 14 days from the time your lender upheld this decision to accept the lender’s original offer.