Loan Modification Case Studies

It is interesting to see how this economic crisis has affected just about everyone. You see modest homeowners facing foreclosure as you see the owners of big mansions struggling to keep them. It doesn’t matter how big or small the house is, it is not immune to these economic downturn effects and that is why a Loan Modification can make a huge difference as our recent success stories show.

 

Citi Group Loan Modification

In this particular case the borrower has a loan with Citi Group & came to us when her sale date was just days away. With a payment of $1,940 & an interest rate of 9.75% our client felt hopeless. In less than 48 hours we stopped the sale date & started negotiating for better terms. She was shocked when she found out that her modification request was approved & her interest rate was reduced to 6% & her new payment would only be $1,182. Not only did she get a $758 reduction in her payment but she was not required to come up with a down payment and all the late payments were placed on the back of the loan.

 

IndyMac & American General Loan Modifications

We recently worked on a case in which the borrower was behind on both his 1^st & 2^nd mortgages and had a sale date set for his house. After stopping the sale date we worked out an agreement with both lenders. IndyMac reduced his mortgage payment from $4,500 to $3,900. The borrower would have to make six consecutive timely payments in order for his modification to become permanent. This new payment will allow our client to save $600 every month. American General also reduced his interest rate to 2.25%, reduced his payment by $105, & $4,000 of accrued interest were completely forgiven!

 

A Principal Reduction is Possible

It is true that most lenders are not willing to reduce the balance of your loan but it doesn’t mean that it is impossible. It is important for you to know that a principal balance reduction will not happen without the help of a skilled & knowledgeable negotiator. Our Loss Mitigation Department recently negotiated a balance reduction of $50,924 with Chase. They also dropped the interest rate from 8.35% to 3% on a 22 year period and the client’s mortgage payment was reduced $434.

 

AHMSI Loan Modification

AHMSI is one of the lenders that have been actively participating in modifying thousands of loans. We recently had a remarkable success with one of our clients who has AHMSI as his lender. When we took on this case our client’s mortgage payment was $2,266 per month. By the time we finished the negotiations our client was granted a 2% rate that would gradually increase to 5% over the next five years and would remain fixed for the rest of the life of the loan. Our client’s new mortgage payment is now $1,225 and that is a savings of $1,041 per month.

Stories like this prove that a loan modification is definitely the best way to avoid foreclosure.

 

Countrywide / Bank of America Successful Modification

We recently had another success with a client that has a loan with Countrywide (now Bank of America). When we started working on her case she had a mortgage payment of $2,725 per month. After a couple of months of negotiating with her lender we were able to put her in the Making Home Affordable Plan. With a new payment of $1,932 and a savings of $793 per month, she’s now able to afford her mortgage.

 

NationStar Mortgage Modification

Another one of our clients has a loan with NationStar Mortgage. His payment was $913.60 a month and after our work was completed we got him a 30 year fixed rate of 5.5% that resulted in a reduction of $241.30. His new payment is now $672.30 and he’s able to comfortably pay his mortgage every month.

 

Countrywide / Bank of America Loan Modification

One of our clients was experiencing financial difficulties that led to default. His loan was with Countrywide (Bank of America) & he was paying $2,260.00 a month, had an interest rate of 6.880% & was 4 months behind when he came to us for help. It took approximately 8 months to complete his modification but the results were great. Not only we were able to lower his mortgage payments to only $1,300.00 allowing him to save $960.00 every month but also got the lender to reinstate the loan by adding the $27,000.00 that he owed to the back of the loan. We always advice our clients to be patient since Loan Modifications don’t just happen overnight and this case is a perfect example of what can be achieved with reasonable patience & the right team.

 

Successful GMAC Modifications

GMAC is one of the few lenders that has been active in their efforts of helping homeowners in need of a loan modification. Not only do they offer additional workout options for those who don’t qualify for the Making Home Affordable Plan but they also do it at quicker pace.

Below are a few cases in which homeowners are now saving a significant amount in their monthly mortgage payments.

Case 1

Our client was granted a modification just 2 months after we started working on his case. He received a 36% decrease in his payments resulting in a $1,099.00 monthly savings.

Case 2

After just 2 ½ months our client received a 28% decrease in her monthly mortgage payments and is now saving $628.00 per month.

Case 3

3 months after we submitted her modification request our client received a 17% reduction in her monthly mortgage payment and now saves $310.00 a month.

 

Bank of America Loan Modification

Bank of America was being severely criticized because of their unwillingness to modify loans under the Making Home Affordable Program. However, they have been making an effort to increase the efficiency of their Loan Modification System.

We recently had great success with one of our clients who has Bank of America as her lender. She was granted a making home affordable loan modification just 4 months after she hired us. S he received a significant reduction in her monthly mortgage payment. Her original payment was $2,700 and she had an interest rate of 8.99%, and even though she had not yet missed a payment she was really nervous as she knew she wouldn’t be able to remain current for much longer. 

Her new payment is now $1,539.98 and she will be saving $804.57 per month. She now only has to complete her 3 month trial before the modification becomes permanent as that is a requirement for all Making Home Affordable Loan Modifications. 

We are glad we were able bring some financial relief for her family. We are hopeful that this Loan Modification will allow her to make her new mortgage payment comfortably. 

 

Bayview Loan Modification

One of our clients has a loan with Bayview Loan Servicing. He came to us with a monthly mortgage payment of $4,500.00. He knew he was imminently headed for default if his payments weren’t adjusted. We were able to help him save $2,200 by reducing his mortgage payments to $2,300 a month.

Carrington Mortgage Loan Modification

This client was upside down on their house by 30,000. They attempted to refinance with the original broker, however with no equity in their home the banks would not take that risk. With a 10.10% adjustable rate mortgage the client has to do something or else the mortgage payment is completely unaffordable, leading them down foreclosure lane.

 

Original Loan Information Modified Loan Results

Loan Type Adjustable Rate

Original Teaser Rate 6.50%

Amortization 30 Years

Current Rate 10.10%

Principal Balance $625,000

Monthly Payment $5,675

Amount Behind $17,025

Home V alue $605,000

 

New Loan Type Fixed Rate

New Fixed Rate 6.75%

New Principal Balance $605,000

New Monthly Payment $3,925

Principal Forgiveness $10,000

Total Monthly Savings $1,750

 

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Loan Modification Case Studies