More Homeowners’ Home Loan Modifications Denied, Announces American Residential Law Group

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According to American Residential Law Group, an increasing number of homeowners have had their home mortgage modification denied.

Loan Modification Being Denied

One of the most common reasons for homeowners being denied a mortgage modification is too little money left over at the end of the month.

A growing number of homeowners have had their application for home mortgage modification denied, according to American Residential Law Group. Understanding the reasons for these rejections is paramount in bettering a declining financial situation.

One of the most common reasons for homeowners being denied a loan modification is too little money left over at the end of the month. While this sounds counter-intuitive, lenders will not extend a modification program if there is simply no way that a homeowner can make even minimal payments.

The second most common reason for modification denial, according to the experts at American Residential Law Group, is too much surplus income left at the end of a monthly period. If the lender deems a homeowner’s surplus income too high, the lender will deny the modification and attempt to enroll the homeowner in a repayment program.

Another common cause of denial for a mortgage modification is insufficient tax documentation. In order to qualify for a modification program, homeowners must have their total income fully documented, including tax returns, paycheck stubs and proof of any other form of income. Failure to do so will result in denial of a modification.

Of the hundreds of thousands of mortgage modification submitted under the administration’s program, as well as subsidiary programs, only a small percentage have been approved. American Residential Law Group urges homeowners facing the harsh reality of foreclosure to gain a full understanding of their responsibilities prior to submitting an application for modification. Expert legal guidance is also urged, in order to ensure the best chance of success.

To learn more about home mortgage modifications and how American Residential Law Group can be of assistance to you, visit them at

About American Residential Law Group: American Residential Law Group is a law firm that strives to provide the community with legal assistance and all the benefits to which consumers are entitled under the law. With a considerable background in all areas of consumer advocacy, American Residential Law Group remains dedicated to providing integrity and excellence for their clients, and increasing their quality of life.


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Joel S Jacobi
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