What are the possible outcomes if my loss mitigation application is denied?

If a loss mitigation application submitted to Washington Mutual - Mortgage/ Credit Lines Loss Mitigation is denied, there are several possible outcomes that a customer might encounter. Firstly, the denial generally indicates that the proposed loan modification or relief option does not meet the established criteria set by the institution. In this case, the borrower would likely be expected to continue making regular mortgage payments as stipulated in the original loan agreement. It is also important to understand that the borrower may receive a detailed explanation regarding the reasons for the denial. This can provide valuable insights into what factors were considered and may guide future applications. For instance, if the denial was due to insufficient income documentation or creditworthiness, the borrower may choose to resolve those issues before reapplying. If the application was appealing for a specific type of relief, the borrower still has the option to explore other loss mitigation alternatives. These could include different loan modification programs, forbearance agreements, or even a short sale. Should these options still not lead to a favorable outcome, the borrower may need to consider seeking advice from a housing counselor or exploring other financial solutions. For current guidelines and possible next steps, it might be helpful to check the Washington Mutual website for further information and resources.