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$5,000 Principal Reduction

Posted in Mortgage Modification, Principal Reduction

If you got a HAMP or Making Home Affordable modification, you will be receiving an additional $5,000 principal reduction. Republicans in Congress want to put an end to HAMP and Making Home Affordable modifications. Read what Martin Andelman has to say about these developments. We have an open telephone line to brokers, buyers, sellers, and clients in general who may need help with buying or selling real estate or who may need help with mortgage modification. Services we offer: Help to Brokers, Co-Brokering Escrow Setup Lease Option Deals Mortgage Modification Help to Sellers Help to Buyers Cleaning Up Our Drinking Water Making Snohomish County a Better Place Your referrals are welcomed. Sincerely, James Robert Deal , Attorney James@JamesDeal.com 425-771-1110 telephone 425-776-8081 fax 3715 196th St SW # 2276 Lynnwood, WA 98036 www.Mortgage-Modification-Attorney.com www.Fluoride-Class-Action.com...

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Servicers Make More Money By Modifying Than By Foreclosing

Posted in Mortgage Modification

Thanks to Martin Andleman and Mandleman Matters Why Does Ocwen Want to Modify Loans? Answer: Because they profit by doing so.   In case you haven’t noticed, over the last month or so there’s been an ongoing debate of sorts happening on Mandelman Matters as to whether mortgage servicers make more money modifying loans… or foreclosing. It’s the same debate that’s been going on informally all over the country since 2009, when everyone was trying to explain what the Sam Hill was going on with servicers who at the time, seemed to be doing everything but modifying loans. And, if you remember, I’ve been saying that servicers cannot possibly be making more money by foreclosing today… perhaps they did to a point, but not for a long time now.  Late fees are great… to a point.  Once everyone’s late,...

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Modification on Rental

Posted in Mortgage Modification

It is harder to get a mortgage modification on a rental property than it is on an owner occupied property. The rules are not as clear. You need a higher income to qualify for a rental modification because you have to be able to cover your home mortgage. Nevertheless, persistence pays. This young couple went from an adjustable interest rate to a fixed rate of 2.54% for five years followed by a fixed rate of 4.5% for the balance of the loan. Ocwen and its investor turned this modification down repeatedly. However, we kept reapplying and reapplying. The problem was that the borrowers were self-employed, although they wrote paychecks to themselves. Ocwen continued to add profit plus paychecks, effectively doubling the borrowers’ income. After much persistence and escalation of the file, we were able to get to someone who...

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Making Home Affordable Continues

Posted in Mortgage Modification

HAMP continues aiding borrowers Three firms still fall short in meeting servicing goals. Thanks to Housing Wire. Kerri Ann Panchuk December 9, 2013 4:48PM Bank of AmericaCitiTreasuryHome Affordable Modification ProgramHAMPhomeownersObama AdministrationHousing Scorecard EmailPrintReprints  More AAA Related Articles MRG Releases Loan Modification Packages Permanent HAMP mods fall 26% in August Treasury Begins Review of HAMP Trials Related Companies OSC America’s Infomart / AIM YOUR WAY, LLC REO Management Solutions, LLC The government’s Home Affordable Modification Program continues chugging away even though three servicers received less-than-stellar marks on key areas of borrower outreach and servicing, the Treasury said Monday. But HAMP overall continues to succeed, the government noted. The Obama Administration Housing Scorecard came out this week, revealing the latest data on how many homeowners obtained aid through government housing programs — namely HAMP. Of all the non-GSE loans eligible for principal reductions...

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Rental Property Modification

Posted in Mortgage Modification

This is a rental property modification. Ocwen was the servicer, and the investor was Washington Mutual and now Chase. The owner quit paying for 20 months, and the balance rose to $254,000. The interest rate was already under 3.0%, because this was an adjustable rate loan. The payment was already low, around $1,156 plus $269.93 for taxes and insurance. The end result was an in house modification that lowered the payment to $944.17 plus taxes and insurance. This payment and interest rate is based on a 398 month amortization. The best part of the modification is that the rate is fixed at 2.54% for six years until 2019, when the balance will be $222,000. Then the rate will go up to 4.5% and continue at that level for 18 more years, when the full balance will be due. Although...

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$157,105 Wells Fargo Principal Reduction

Posted in Mortgage Modification, Principal Reduction

JS is a hard working taxi driver. He came to us after a financial hardship, including a divorce. Ocwen is his servicer, however, the important fact is that Wells Fargo is the investor, the owner of his mortgage. Wells Fargo gives principal reductions because it was nailed in the recent robo-signing scandal. In this case JS is getting a principal reduction of $52,368.51 per year for three years, for a total of $157,105.53. Further, there is a principal and interest forbearance of $40,600, which means that this amount of his loan will bear no interest and require no payments for 34 years. His payment dropped from $1,936.28 to $1,074.41. Yes, JS is a happy taxi driver. See this modification by clicking on this...

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Wells Fargo – 3 Year Modification

Posted in Mortgage Modification

It is a long story, which I will tell later. For now I will just share the link with you and tell you that this modification took three years to complete. Here is the link:...

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Principal Reduction Modification

Posted in Mortgage Modification

We just negotiated this excellent modification with Bank of America. The interest rate was reduced to 2.0%. The principal balance was reduced by $131,000....

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Low Modification Approval Rate

Posted in Fannie Mae, Mortgage Modification

This post comes from Martin Andelman. The low approval rate on modifications Martin discusses is the main reason why you should hire an attorney to do your modification. Our success rate on modifications is much higher, around 80%. Of course, part of the reason why that is so is that we do not take cases where we are not reasonably confident that we can get a positive result. *** Data shows Nationstar Approves Loan Modifications at Much Lower Rate than Big Banks During the month of May, which is the most recent data available from the Treasury Department, Nationstar Mortgage’s servicing operations approved 601 loan modification requests… and denied 4,216.  That’s a 12.5 percent approval rate for the month of May.  Cumulatively, based on program-to-date data through the month of May, Nationstar only approved 22 percent of the loan...

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Eminent Domain To Modify Loans

Posted in Mortgage Modification

A City Invokes Seizure Laws to Save Homes Peter DaSilva for The New York Times  Thanks to New York Times. Robert and Patricia Castillo paid $420,000 for a three-bedroom, one-bathroom home in Richmond, Calif., in 2005. It is now worth $125,000. By SHAILA DEWAN Published: July 29, 2013 The power of eminent domain has traditionally worked against homeowners, who can be forced to sell their property to make way for a new highway or shopping mall. But now the working-class city of Richmond, Calif., hopes to use the same legal tool to help people stay right where they are. An abandoned home in Richmond, where roughly half of all homeowners with mortgages are underwater, meaning they owe more than their home is currently worth. Scarcely touched by the nation’s housing recovery and tired of waiting for federal help, Richmond...

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Fannie and Freddie Loosen Modification Guidelines

Posted in Fannie Mae, Mortgage Modification

FHFA expands suite of loan mod tools By Kerri Ann Panchuk • March 27, 2013 • 9:00am Servicers dealing with loans guaranteed or owned by Fannie Mae and Freddie Mac will soon be required to offer eligible distressed borrowers ways to lower their monthly payments if the homeowner shows a willingness and ability to make three on-time trial payments, the Federal Housing Finance Agency said. The program, which begins July 1, applies to borrowers with GSE loans that are 90 days or more past due. The idea behind what the FHFA is calling the Streamlined Modification Initiative is to encourage servicers to handle delinquencies earlier, minimizing losses to the GSEs and taxpayers, while cutting back some of the red tape that slows down the traditional approval process. All eligible borrowers have to do is make three on-time trial payments, the FHFA said. Once those payments...

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Lenders Lie to Modification Applicants

Posted in Mortgage Modification

We have found that Lenders often take advantage of those who apply for modification on their own. Lenders tell them they have not received certain documents and say their documents have “expired”. Often lenders  decline modification and do not make the reason clear. This is why we believe that it is best to be represented by an attorney when you apply for modification. Thanks to ProPublica for this article. Bank of America Lied to Homeowners and Rewarded Foreclosures, Former Employees Say A customer uses an ATM at a Bank of America branch office on April 17, 2013 in San Francisco, California. (Justin Sullivan/Getty Images) by Paul Kiel ProPublica, June 14, 2013, 5:44 p.m Bank of America employees regularly lied to homeowners seeking loan modifications, denied their applications for made-up reasons, and were rewarded for sending homeowners to foreclosure, according to...

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