Bank of America Department of Justice Loan Modification Obtained for Homeowner Located in Laguna Beach, CASubscribe to Rss Feed
The Law Offices of Michael Gaddis recently obtained a Department of Justice Loan Modification from Bank of America for a homeowner located in Laguna Beach, CA. The Department of Justice Loan Modification provided the homeowner with a $395,859.61 principal reduction leaving the homeowner’s new unpaid principal balance well below the current market value. This modification was really quite remarkable in that the Department of Justice Loan Modification principal reduction placed the homeowner into a positive equity situation. Prior to retaining Michael Gaddis the homeowner had been denied a Department of Justice Loan Modification several times based on net present value (“NPV”) failures. After speaking with several attorneys who told him that his best bet was to walk away from the house the homeowner contacted Michael Gaddis who thoroughly reviewed his NPV results along with financial information provided by the homeowner. After review Michael Gaddis told the homeowner that he should be passing NPV and that he should qualify for a loan modification. The homeowner, a very analytical person, was impressed by the thoroughness of Michael Gaddis review and was swayed by his confidence. He retained Michael Gaddis who promptly submitted a new loan modification package.
The key to a loan modification is the underwriting stage. If Bank of America makes a mistakes during the underwriting stage then, more than likely, the results will not be favorable to the homeowner. In this particular situation, Michael Gaddis identified where the underwriter was having issues and made sure that the underwriter did not make the mistake again. Sure enough Michael Gaddis was able to obtain a trial Bank of America Department of Justice loan modification. The homeowner promptly made all three (3) trial payments and received a final Bank of America Department of Justice loan modification. The new modified principal, interest, taxes and insurance (“PITI”) payment of $5,622.89 represents an over $1000 a month reduction from what the homeowner was paying prior to becoming delinquent. The initial interest rate of the modification is 2.5% for the first five (5) years followed by 3.5% in year six which shall remain fixed until the maturity date of the loan in 23 years.
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 received by Bank of America; Bank of America properly uploads the modified terms into their system; and that Bank of America returns the homeowner’s account back to regular servicing.
To view a copy of this Bank of America Department of Justice loan modification as well as other successful loan modifications procured by The Law Offices of Michael Gaddis please click the following links: http://californialoanmodificationattorney.com/trials-modifications/ and http://californialoanmodificationattorney.com/trials-modifications/approved-trials-modifications-pg-2/