SOURCE: Florida Homestead Law Group

Florida Homestead Law Group

March 02, 2011 06:00 ET

Florida Homestead Law Group Identifies Top Ten Reasons for Denial of Material Modifications

Information to Be Considered When Homeowners Deal With Servicers

FORT LAUDERDALE, FL--(Marketwire - March 2, 2011) - Florida Homestead Law Group today identified ten of the top reasons why servicers deny requests to materially modify subprime mortgages. 

"A subprime mortgage is normally made out to borrowers with lower credit scores or insufficient credit history," Scott Podvin, Lead Attorney for Florida Homestead Law group said. "Most of these mortgages are securitized, so your knowledge and understanding of your loan servicer is pertinent to obtaining a material loan modification."

Ten of the top reasons servicers deny material modification requests include:

1) If it is not reasonably foreseeable that a loan will go into default, or the subprime mortgage is not facing imminent default.

2) If it is not the loan servicer's "normal and usual" servicing practice to grant requests for loan modifications.

3) If the granting of a loan modification request is not in the best interest of the certificate holders/trust/trustee. 

4) If the insurance policy prohibits material loan modifications.

5) If the rating agency, insurers or purchasers/trustees' consent is not required.

6) If the loan servicer grants such requests to other borrowers whose loans have been placed in other pools of mortgages that the loan servicer services. 

7) If the loan servicer makes a good-faith business judgment that the request for a material loan modification is not economical.

8) If a request does not meet Fannie Mae guidelines.

9) If the borrower has already defaulted under the terms and conditions of the mortgage. 

10) If the borrower has been given a loan modification or has declared bankruptcy within the last year. 

To learn more about material modifications or how an experienced Florida foreclosure defense attorney can help, visit Florida Homestead Law Group at

About Florida Homestead Law Group: The Florida Homestead Law Group, based in South Florida, strives to provide client focused interdisciplinary services, resulting in a hands-on legal representation experience for all clients. The attorneys and staff are advocates of financial responsibility and consumer rights.

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    Fort Lauderdale, FL, 33311
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