Congratulations to the millions of Americans who had big savings accounts, massive equity in their real estate and great and high paying jobs before the recession. Even more so to the ones who still do!

Millions of other American homeowners had not achieved such a lofty place financially. Some of them are young and just getting started on wealth-building. Some are less fortunate, less well-connected. Some are in the midst of personal calamity like a divorce, death in the family or are really sick themselves. Some are committed to causes that distract them financially, you know, like church, the environment, animal care and protection, etc. And, some just have prioritieslike teaching or preaching or other fields…that just don’t pay very well.

And, finally, another millions of other American homeowners participated in a horrendous and shameful scam that foolishly, greedily and sometimes fraudulently enabled them to borrow too much money from the banks who borrowed too much from Wall Street who borrowed too much from the world…oh, my!These characters not only used that money to purchase dwellings near and even in “good” neighborhoods way above their class but they had the audacity to actually move their families into them! Wow! Everyone seems to agree that these guys can be dealt with by foreclosure.

There are heroes and villains, struggling with foreclosure, in each group. In my work as a foreclosure consultant I get on the phone and across the table from hundreds of struggling homeowners each month. ‘The vast majority in three groups are heroes – Americans just trying to extend our heritage of restlessness and hope for a better life for our families.

I bristle when I hear the industry tools pander to wealthy and smug viewers by blasting the vulnerable members of the financial lower class. Without a doubt I have met just as many villains across the $18K dinner table as I have across the $180 one. Palos Verdes villains are scarily-similar to Compton ones.

So, let’s be nice! It’s the bad guys we’re after. Let’s bring criminals to justice but let’s lighten-up on the snootiness factor. And, after all, we all bought homes with the booty. It could have been worse!

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It’s just part and parcel of the mortgage modification process in 2010 – REJECTION! Lenders can’t deliver performance levels that satisfies anyone in spite of over two years of work and over eighteen months of financial incentives from the President’s Making Homes Affordable Modification Program (HAMP). Even well qualified applicants are getting rejected. Sometimes, more than once.

I’ve come to think that rejection is a good thing! Recently, I reviewed our files and in the past 6 months not a single mortgage modification was granted without first being rejected. Every one of the modifications I have completed for clients this year have been rejected before being accepted. Even when Trial Modifications were in place, rejection of the permanent Modification took place before finally getting approved. Several of the mortgage modifications I have successfully managed in 2010 were rejected as three times before being approved.

It’s hard enough to meet the challenging application procedures and follow-up effectively to keep your application on-track. To have to also escalate your rejections to supervisors, managers, Directors , Vice Presidents and CEOs and to contact your local congressperson, the regulatory agencies, the trade associations and even the press in order to get it done? This is tough stuff!

But, stop whining. If that’s the way it is we just have to deal with it. The list of reasons for rejection include: “Your loan investor’s not participating in modification programs”, “You failed the NPV calculation”, “You make too much”, “Your income is too low”, “You have too many assets”, “Your 4506-T has expired”, “Your Ratios are wrong”, “You did not provide updated docs”, “We need a note from your mom (O.K., I made this one up!)”, ad infinitum.

Sure, all of these can be valid. But, often they are simply errors resulting from lender mismanagement of the application or are blatantly untrue statements that delay or stop the application process prematurely. If the borrower does not persevere it means the end of the application and a tragic conclusion to a family’s hope for assistance. So, when you get rejected do not give up. At least you’re not being ignored! Immediately get a precise explanation of why your application is being rejectd. Go through agents and escalate to a supervisor if you must to get a straight answer. Then, address the issue. Supply the missing doc or sign the updated form or correct the data entry error on your income (No, it’s not $85 per month. It’s $8500!) or do whatever it takes to get it back on track. Request reconsideration when you submit the information or correction to the agent. If you have submitted a good and accurate application upfront, you will eventually be granted mortgage modification.

So, don’t be dicouraged when you get rejected for a mortgage modification. It’s significantly better than getting the dreaded “Your application is under active review and no further action is required of you at this time. Please call back in 10 days”. Oh, it’s even hard for me to write those words! Rather, take the rejection as encouragement that you are actually getting some traction and will likely get approved very soon. Takes a lot of perseverence, eh?

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