It could happen. It will happen. The MMM Program does not guarantee 100% of the applications will be approved.
But the goal of this MMM Program is to give both parties - Borrowers & Lenders - the focused opportunity to avoid a denial for the wrong reason.
Debtors' Counsel do this: A denial will likely result in a Mediation session being set (unless you curl up an walk away). Prior to that Mediation session, get on the DMM Portal and ask specific questions through the Messaging system of the Lender / Servicer, such as:
1. What did the lender calculate the borrower's gross income to be?
2. What did the lender calculate the borrower's new income to be?
3. What did the lender calculate the borrowers' monthly expenses to be?
4. Please explain why, specifically, the application was denied.
The answers you get back, and your comparison to your Debtor clients' view of the world will give you something to talk about at the Mediation session, to see if there were mathematical or conceptual errors made by the lender in their analysis. Detailed explanations of why they denied the application can also give you topics to address.
Next: if you think the deficits or errors can be corrected, ask for a second Mediation session (you paid for TWO 1-hour Mediation sessions), that is normally scheduled within 30 days of the current Mediation session.
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** Credit goes to Ellen Lawson, Scottsale attorney extraordinaire for recently sharing these ideas. Want to work with Ellen Lawson as co-counsel in your Debtors' MMM case? Click here for more information.