Final Chase Loan Modification Obtained for Homeowner Located in Rancho Santa Fe, CASubscribe to Rss Feed
The Law Offices of Michael Gaddis recently obtained a final Chase loan modification for a homeowner located in Rancho Santa Fe, CA. Since the loan amount of $1,495,227.48 exceeded the HAMP threshold of $729,000 the only Chase loan modification program available for the homeowner to be reviewed under was CHAMP, Chase’s internal loan modification program. When the homeowner first consulted with Micahel Gaddis the homeowner told him that she and her husband were nearly $200,000 behind in their payments. The homeowner also said that Chase had begun to pay their property tax payments. The homeowner explained that her business had experienced some difficulty which caused her to get behind on her payments but that her business was now operating at a profit again and if she could just get caught up on her payments she would never be late again. Like most others, she had tried and tried to obtain a Chase loan modification on her own and through the assistance of other companies but had been denied repeatedly. Michael Gaddis was her last hope. If Michael Gaddis was unable to help her the homeowner’s only hope would be to reinstate her loan which would require her to find a way to come up with a sizeable chunk of money. The homeowner’s case was difficult becuase she was self-employed and due to the size of her unpaid principal balance. Additionally, there was a potential issue with her loan-to-value (“LTV”). After performing a couple of comps in her area Michael Gaddis was a little worried that the vlaue of her house might exceed what she owed on her loan. In the loan modification world the higher the LTV the better. In this case the homeowner’s LTV might be as low as 95% or as high as 110%. It was hard to determine what Chase was going to use as a value due to the fact that the homeowner lived in an area of custom homes which can be difficult to value.
In the end the homeowner was approved for a 3 month trial which she successfully completed and was issued a final Chase loan modification. The terms of the Chase loan modification call for a fixed 3.5% interest rate through the maturity date. Additionally, the Chase loan modification deferred $121,239.72 of the principal balance which is eligible for principal forgiveness in one-third increments on each of the first three anniversaries of the loan modification provided the homeowner is current on her payments.
As always, Michael Gaddis and his staff will continue to monitor the homeowner’s file in order to ensure that Chase receives the signed Chase loan modification documents; Chase properly uploads the modified terms into their system; and that Chase returns the homeowner’s account to regular servicing.