Client Keeps Their Home With Successful Loan Modification
N/AOUTCOME: Settled and loan modified
We helped a married couple obtain a Home Affordable Modification ("HAMP") Loan Modification to save their home in Sullivan County in September 2014. The couple owned a contracting business that suffere ... d some cash flow problems. This caused a reduction in their household income and impaired their ability to make their mortgage payments. We prepared and submitted a HAMP package to their lender and received extremely successful results. The lender agreed not only to modify the mortgage, but to waive all of the past due late charges on the couple's account. The outstanding balance on the mortgage, including interest and the escrow shortage and other charges was approximately $585,000 but the permanent modification agreement forgave principal of approximately $90,000 and calculated the payments on the reduced principal amount of $491.424.70. In addition, the interest rate was dropped from 6.625% to 2% and will step-up until it levels off at 4.1250%. The monthly payment decreased from $3,175.94 pre-modification to $1,488.16 under the modification agreement and the new term will be 40 years under a new amortization schedule. We were able to obtain successful results for our clients and we know that they can sleep a little easier at night now that they can afford to pay their mortgage and keep their home.
