You should be well aware that before your application is approved, your lender will review all your documents. In addition to that, there might be a loan modification inspection to determine whether or not what you have provided is true and factual.
The minute you get a foreclosure notice of default, make sure that you hire a loan modification lawyer. At loanmoddepot, you will find a couple of experienced lawyers who will help you with the process. As a matter of fact, they have a loan modification consulting department, where you can inquire all you need to know about the modification process and penalties.
There are a number of consequences if you lie on your loan modification application. In the worst case, you could lose your home without negotiations. Here are some of the possible consequences:
- Your loan modification is denied
If you lie about your reason of default or provide fake documents, the lender (bank) may cancel your application. Many lie that they do not have enough money or have lost their jobs, and that is why they were defaulting. For others, they may provide outdated documents thinking they are smarter than the lender. If your lie is detected during the review stage, your application for a loan modification will be denied.
- The full loan amount gets called by the lender
As a way of showing how disappointed the lender is, they may call the full loan amount. This means you have to pay every single cent of the remaining balance. If you had lied that you do not have a stable income and the results show otherwise, this could be a possible consequence.
- You can be sued
Lying on its own is an offense. It is even worse if you lied about your personal details when you applied for a loan modification. You will be served with a financial penalty and if your lie was a bit overdone, you may be taken to court for mortgage fraud.