Turned Down For a Refinance – What Are My Options Now?
Have you been turned down for a refinance? If you have you are not alone, and your situation is not hopeless. I am going to detail a quick plan for getting approved for a loan that could literally save the roof over your head. I won’t delay too much with the rambling so lets get right into it.
Loan Modification Trumps Refinance
Many people are turned down for a refinance loan on their property because the criteria for awarding the loan is very rigorous and complex. To begin with, if you have been in arrears for any number of months your chances of getting a refinance loan are very slim. The answer then to all this tough criteria is a loan modification. These types of loans are not new, but the one I want to elaborate on here is the Home Affordable Modification Program or HAMP for short.
What is HAMP?
HAMP is a federal program that was enacted under Obama which is specifically geared towards helping people in financial distress. There is a qualification criteria also but it is not as tough as getting a refinancing loan. HAMP loans are easier to get because they are targeted for people who are struggling to pay their mortgages. Put it another way, falling behind in your mortgage payments can actually help you to qualify faster for a loan under HAMP. I think that HAMP is very comforting for anyone who has been turned down for a refinance.
How Do You Get a HAMP Loan?
The process involves the submission of an application along with a hardship letter. The hardship letter will outline in sharp detail, what happened to put you in the current mess, what you’ve done to fix it and potentially how you might be shoulder any potential modification in your existing arrangements.
Now if all that sounds like a difficult task don’t worry; the good thing is that you can use a loan modification company to do it all for you. In fact, it is better if you use one as your chances of being approved are increase dramatically. Sometimes by more than 80%.
What Are My Next Steps?
The information I have just shared with is sound and should comfort you if you’ve been turned down for a refinance. You now have a viable option to saving your home and I urge you to look into it. So what next? Well, I strongly recommend that you first start off with a free loan modification evaluation in order to determine the best course of action based on your financial situation.