I live in California and submitted a loss mitigation application to my loan servicer to modify the first mortgage on my home. I have never applied for a mortgage modification or another type of foreclosure alternative before. The servicer denied my application. Do I have the legal right to appeal this decision?
Not under California law. In California, a law called the Homeowner Bill of Rights (HBOR), which became effective January 1, 2013, used to require servicers to give borrowers the right to appeal modification denials. But the law changed on January 1, 2018.
Now, if the servicer denies your first lien loan modification application, it merely has to send you a denial notification that:
In the past, homeowners often found themselves faced with a loan modification denial and no way to appeal the decision. Both the federal government and various legal settlements with servicers and banks have tried to address this problem.
If you believe that your servicer denied your loan modification in error or didn't provide you with the proper opportunity to appeal the denial, consider talking to a foreclosure attorney to get advice about you what you should do in your particular circumstances.