Testimonials
Here are recent loan modification cases that have been resolved successfully with before and after scenarios and work out plans.
Story of Joe from Louisiana 9/23/2008:
12 months behind on mortgage payment with house going to sell in 14 days from the time he contacted The Helpful Hands Foundation.
The interest was already fixed rate at 5% with payments of 625.00. THHF dealt with EMC Mortgage and negotiated stay of sale with the client resuming payments. All collection fees, late fees and back interest were forgiven. Basically starting on a new slate.
Negotiations took approximately 7 days.
Story of Elena from Florida 10/28/2008:
Monthly Payment: $1237.00 principal and interest
Behind on mortgage payments for 6 months. No answer or help from her mortgage company who happens to be Yale Mortgage a hard money lender.
Workout:
For One Year, your total payments for Principal, Interest, Taxes and Insurance (PITI) will be Seven Hundred Twenty Five Dollars ($725.00) a month for one year.
The original financial request in the amount of Seventeen Hundred Forty Two Dollars ($1742.00) to accommodate this program by ####### was waived by #######, CEO.
Provided you make your payments to Yale Mortgage in a timely fashion, at the end of twelve (12) months, the arrears in the amount of Eighty Two Hundred Sixty One Dollars ($8162.00) will be waived.
This Agreement, can be extended after twelve months with a written request to Yale Mortgage.
The attached Interim Payment Agreement must be executed and dated by you.
Upon completion, please submit to Yale Mortgage with your first payment in the amount of Seven Hundred Twenty Five Dollars ($725.00) by Monday, October 27th.
Hard Money Lenders are tough but some like Yale Mortgage do find their heart. It just spells out that resilience pays off and willingness of both parties to come to a sensible agreement.
Story of Frandy from Florida 11/10/2008:
- Behind on mortgage payments for 9 months.
- Interest rate of 10.25%. (Soon to adjust higher)
- Mortgage payments of $1881 principal and interest including $229 for escrow of taxes and insurance.
- Debt to income of 55%.
- Balance of loan $186,000. (Property is upside down by $50,000)
Workout Loan Modification:
- Debt to income ratio of 37.34%.
- Reduce Principal Balance to $130,000, meaning principal write down of $50,000.
- Remaining term of loan remains at 338 months.
- Interest rate of 7.5%.
- Monthly principal and interest payment: $925.76
- Monthly escrow payment: $229.66 (estimated based on current tax and insurance payments as disclosed)
- Total Monthly payment $1155.42 (using estimated escrow)
- Delinquent interest is waived. Late charges waived.
Frendy’s deal is a good example of successful loan modification. He will save over $245,000 of interest through out the life of the loan. ($1881 - $229[escrow] = $1652 - $925[new P&I] = $727 x 338[remaining months] = $245,726[interest saved])
His P&I is now lower then any apartment he would be able to rent in the area. His home is now adjusted to current property value.
Story of Lishonda from Florida 11/15/2008:
11 months behind on mortgage payments. Accumulated late fees and outstanding payment on balance. Foreclosure process started 5 months ago.
Lender: Home EQ
Resolution:
Combo Loan:
First loan: fixed rate of 6.1% reduced to: fixed rate of 4.0%
original monthly mortgage payment: $918.26 reduced to principal & interest: $825.17
Second loan: fixed rate of 11.3% reduced to: fixed rate of .5%
original monthly mortgage payment: $419.24 reduced to principal & interest: $145.59
Lender forgives accumulated 11 months of outstanding debt.
Homeowner is reinstated on the loan & foreclosure process is canceled. Estimated time to pay off loans is 336 months or 28 years. Total mortgage loan amount is $200,000.
Savings:
Total Savings of $122,976 on the life of loan.
Story from California 11/22/2008:
LENDER: AHMSI - American Heritage Mortgage Services Inc.
Previous Scenario:
- Seven months behind on mortgage payments
- Adjustable Rate Mortgage / 7.55%
- Loan amount left on mortgage $220,000
New Scenario:
- All behind debt and fees were forgiven.
- His first payment is 1/1/2009
- Savings of $220 per month on mortgage payment
- Lowered interest rate to a fixed rate of 6%
Total interest savings over life of the loan approximately $70,000.
Story of Julie from Florida 12/13/2008
Old Loan Terms
- Loan Type - 3/27 ARM, 7.25% Interest
- Past Due Amount: $18,520.26
- P&I - $1602.67
- Term: 30 Years
- Past Due: 8 Months
New Loan Terms
Modification of the loan includes adding the unpaid attorney fees and cost to the loan balance. Lender will forgive past due interest and late charges. The modification will be a 30 year, 5-1 ARM with starting interest rate of 4.5%
Story of Mellissa from Las Vegas, Nevada - 12/31/2008. This story is just beginning.
Behind on payments approximately 9 months.
Let’s just say Nevada is a Non Judicial State and the mortgagees there, are out of gas when trying to get any modification done with the banks and lenders! OR ARE THEY?
Mellissa Family out in Nevada has been struggling to make payments, property was going to auction this Friday - 01/02/2009. After intense work on this file and great work from client.. they contacted the media and working diligently with our mitigator the property is off the auction block!
We have a complaint and motion filed Pro Se that is pending Judicial Review with the Clark County Courthouse for the possibilities of the borrowers being:
- 1. A victim of Predatory Lending
- 2. RESPA Violation
- 3. Federal Statues Violation
- 4. According to terms of Note, the terms of the note fall under Ohio State Law, Ohio is a Judicial State, Nevada is a Non-Judicial State. The subject property is in Las Vegas NV. Being governed by Ohio State Law, the Lender might be in violation of State and Federal Banking laws and breach of contract.
Our Notice of Pendency of Action was recorded at the Recording Office. No one can purchase a home without Clear Title.
Our request for various documents on this file was sent via Fax, Email and Certified Mail with a request for Production, two of the most important items requested were the Security Instrument that was created 72 hours after closing and the Lenders Trust Ledger, which gives an annual accounting of the debits and credits that each Security Instrument generated. If the Lender fails to comply within 20 days from receipt of our request, we will contact HUD for RESPA Violation.
We plan to take this to the next level, Congress. After the New Year we will try to bring this file to the attention of Senator Reed.
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