* Have You Been Denied a Modification?

I am dealing with the AVP of lending, he denied me a loan on a SFH home that I have as well.

But had the deal gone through, the new owner would have paid more than an informed buyer probably would have, Freddie Mac would have been denied a legitimate recovery, and the real estate agent would have fraudulently netted a $65,000 profit at the taxpayers’ expense.”Hmmmm....

For example if you require a 600 credit score and someone has a 580, would you deny them or tell them you will rent to them as long as they agree to a higher security deposit because of your increased risk?

The reality of this is it's not surprising.The fact that they cleaned the inside living in it that long is a miracle.Usually people that have lived somewhere 10,15,20 years etc. accumulate a ton of junk.This is why when a bank forecloses and they offer the former owner 2,000 to leave in "broom swept condition" many times they seller will deny the cash for keys.The reason is most likely they are downsizing and the amount of money to rent trash bins and pay a truck to move their extra stuff combined with storage rental fees is a losing proposition.They come out way ahead by simply leaving all the trash there and sell off the rest and taking the leftover essentials to the next place.We would see this all the time on the REO side.If they didn't have much stuff and only lived there a few years cash for keys was more successful.You would need to prove they dumped it there.I would just get it hauled away and move on.If it's a short sale at least in my area the former owners are on the verge of bankruptcy and it's a waste of time and energy to go after them.

that's still high in my book, but then again, i am used to dirt cheap prices.btw, unless you are paying cash, more likely no bank will give you a loan. i was denied a loan because of a repaired crack in the basement. no leaks, nothing. they wont give you a loan if the hardwood has buckled due to moisture.

The problem with short sales if you are solvent is the bank asks for a bunch of financials and assets.If they deny the short sale their attorneys now have a bunch of disclosed assets to pursue that may or may not have been easy to find.You will see this on short sales.Owner applies and only sends in certain documents or banks ask for more documents.Seller that is solvent says no way am I giving you that info and just foreclose.So in those cases sometimes it's better to not give financials and just let it go.He could just keep the cash flow payment and not pay the mortgage until it forecloses.Many do that today and it happens with commercial real estate as well.I am not going to debate morality as that is different from the law.Just saying what goes on in the real world.

I've seen people 5yrs out of bankruptcy have one or 2 NSF's and get denied because the determination was that bankruptcy is to wipe the slate clean- if you are looking for a loan after that- Don't even mess up slightly.

@Denis SaklakovVery true Denis.

I was recently denied by a bank because they thought I lacked experience for the complexity of the project I was undertaking.