Millions of homeowners are struggling to pay their mortgages, and you may be one of them. Many desperately want to keep their homes and are fighting the foreclosure battle. But in a country literally drowning in short sales and foreclosures many confused Americans are left wondering, “Why is it so hard to get a loan modification from my lender?!!” More than half of the frustrated homeowners who have applied for a loan modification from their bank has had either an unexplained denial or felt the process itself was like pulling teeth. So why are lenders holding back?

Too many hands in the pot: Your mortgage may not be owned by your original service company, and eventually real estate  investors own a piece of your mortgage fund. These funds are sold on Wall Street and turned into “securities”. These securities are then governed by the Securities and Exchange Commission who create a new set of rules made to protect the investors investment. This makes obtaining a lender loan modification difficult, because debt gets divided and sold as bonds to new lucky investors while the homeowner is out of a home.

Short staffed much?: Lenders receive thousands of overwhelming loan modification requests a day, but there isn’t enough staff to handle them. Sometimes the loan modifications are handled by two different short staffed departments which can cause miscommunication. The lack of staff, multiple non-communicating departments, and extra bureaucratic hurdles make a loan modification seem as likely as spotting the tooth fairy.

Second mortgage struggle: Homeowners with two mortgages find themselves in the middle of a battle. Though the first mortgage holding investors can be eventually persuaded with the correct hardship paperwork, getting the second mortgage holder isn‘t as easy. Second mortgage holders are usually banks not wanting to expose their home equity debt. Their protesting can hinder the loan modification process for unlucky homeowners.

Obtaining a loan modification doesn’t have to be difficult. To improve your chances of obtaining a modification, hire a modification attorney or seek free counseling. For a list of foreclosed homes in the San Diego area visit

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This is filed under Foreclosures.

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