The Law Offices of Michael Gaddis recently obtained a final Bank of America Department of Justice loan modification for a homeowner in San Marcos, CA.  This final modification is a reward for the homeowner’s decision to stop dealing directly with Bank of America and retain Michael Gaddis’ representation.  Distressed homeowners seeking loan modifications frequently attempt to work with their lender prior to retaining professional help.  While this fact is understandable, for many homeowners, it is also unfortunate.  Homeowners frequently put too much weight into what their dedicated point of contact at the lender tells them.  What many homeowners do not realize is that their dedicated point of contact does not have specialized knowledge regarding loan modifications.  In the end, these homeowners end up frustrated and facing impending trustee sales.  This homeowner was no different.  When the homeowner contacted Michael Gaddis the homeowner was stressed out and on the verge of giving up.  However, after a free consultation with Michael Gaddis the homeowner decided to try one last time.

Michael Gaddis’ knowledge of Bank of America’s loan modification programs, policies and procedures provides homeowner’s utilizing his services a significant advantage in their pursuit of a loan modification.  For this homeowner, the result was nothing less than amazing.  The final Bank of America Department of Justice loan modification permanently forgives $462,027.18 from the homeowner’s principal balance leaving a new unpaid principal balance of $445,000.  Zillow.com estimates the current market value of the home at $526,000.  The interest rate of the final Department of Justice loan modification is 3.375% for five years followed by a fixed interest rate of 3.625% for the remainder of the term.  The initial principal, interest, taxes and insurance (“PITI”) payment of $2,629.56 is nearly $600 per month less than the PITI  payment homeowner was paying prior to becoming delinquent.  Plus, the old payment was an interest only payment while the new payment is a principal and interest payment.

As always, Michael Gaddis and his staff will continue to monitor the homeowner’s file in order to ensure that Bank of America 1) received the final Department of Justice Loan Modification paperwork; 2) properly uploaded the new Department of Justice loan modification terms; and 3) returns the homeowner’s file to regular servicing.  If you would like to see a copy of the final Bank of America Department of Justice Loan Modification referenced in this article or review other loan modifications obtained by Michael Gaddis please click the following links:  http://californialoanmodificationattorney.com/trials-modifications/ and http://californialoanmodificationattorney.com/trials-modifications/approved-trials-modifications-pg-2/.

The Law Offices of Michael Gaddis recently obtained a trial Department of Justice Loan Modification for a homeowner located in San Diego, CA.  Due to the nature and complexity of this homeowner’s income the underwriting process at Bank of America proved to be extremely challenging.  Every loan modification review, no matter what lender, has 3 basic hurdles to overcome 1) hardship 2) financial analysis (underwriting) and 3) Net Present Value (NPV).  In this case, as the homeowner had experienced an obvious serious reduction in income the hardship hurdle was not difficult at all to overcome.  However, as I mentioned, due to the complexity and nature of the homeowner’s income the real battle was in underwriting.  The homeowner’s financial situation proved difficult for the Bank of America underwriters and the underwriting process took considerably longer than a typical loan modification review.  Part of the problem was that some of the homeowner’s income came from Mexico and was in Pesos.  Although the income was stable and continuous, the underwriter had a problem converting Pesos to American Dollars.  However, eventually Michael Gaddis was able to resolve the income verification issues and the homeowner’s file was run through NPV.  The homeowner passed NPV and was issued a trial Bank of America Department of Justice Loan Modification.

The proposed trial Bank of America Department of Justice Loan Modification provides a trial payment of $1,526.00 and a proposed principal reduction of $261,609.79.  The trial payment represents an over $1,200.00 per month reduction from what the homeowner was paying prior to becoming delinquent.  The trial documentation also states that the projected initial interest rate of the homeowner’s loan modification would be around 2.75%.  The final Bank of America Department of Justice Loan Modification is contingent upon the homeowner’s successful completion of the trial period which begins on June 1, 2013.

As always, Michael Gaddis and his staff will continue to monitor the homeowner’s file in order to ensure that the final Bank of America Department of Justice Loan Modification paperwork is obtained.  If you would like to see a copy of the trial Bank of America Department of Justice Loan Modification referenced in this article or review other loan modifications obtained by Michael Gaddis please click the following links:  http://californialoanmodificationattorney.com/trials-modifications/ and http://californialoanmodificationattorney.com/trials-modifications/approved-trials-modifications-pg-2/.