Common Reasons Lenders Deny Loss Mitigation Requests

The most common reasons: an incomplete application (missing a single document restarts the review), income that doesn't support even the modified payment, the loan investor's specific guidelines don't allow the requested modification type, too many prior modifications on the same loan, or a missed deadline for submitting requested documents.

Denials are supposed to come with a written explanation — read it carefully, because many denials are fixable (resubmitting a complete package, or applying for a different program) rather than final.