Bank of America Home Equity Line of Credit (HELOC) Forgiven!!!

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The Law Offices of Michael Gaddis recently negotiated the forgiveness of a charged off 2nd lien held by Bank of America.  The homeowner, a resident of Valley, Center, CA, retained Michael Gaddis to negotiate a settlement and release of lien with Bank of America.  The 2nd lien had an outstanding principal balance of $56,277.03 and had only recently been charged off.  Bank of America is a VERY difficult servicer and negotiating settlements on 2nd liens can be nearly impossible at times.  However, Michael Gaddis knew that once the underlying debt had been charged off that that a window of opportunity had been opened.  Utilizing his close relationship with Bank of America Michael Gaddis approached the bank with a settlement offer.  The bank reviewed the offer and after a couple of weeks Michael Gaddis was notified that there might be a possibility of getting the entire lien extinguished via the Department of Justice (“DOJ”)settlement provisions pertaining to 2nd liens.  Although optimistic, Michael Gaddis continued to push the settlement while continuing to encourage his contacts to get the loan extinguished via the DOJ program.   Finally, on December 3, 2014 the borrower received a notice from Bank of America stating that they had received full forgiveness of the 2nd lien.  The borrowers were stunned to say the least.

As mentioned in previous posts, borrowers that have outstanding liens on their property need to try and negotiate a settlement on these liens as soon as possible.  Many borrowers think that if the loan has been charged off or if they have not heard from their lender in a while that the loan has been forgiven and they are off the hook.  The problem is that the lender retains a security interest in the property and most definitely will create problems for the homeowner in the future.  Now is the perfect time to negotiate settlements on 2nd liens such as a home equity line of credit (“HELOC”).  As the housing market recovers and the value of homes continue to rise the leverage that borrowers have against the lenders will decrease.

If you or someone you know has a lingering junior lien such as a HELOC and you are wondering what your options are please contact Michael Gaddis, Esq. at 760-692-5950 or by email at Michael@LawOfficesofMG.com.

DOJ Loan Modification Approval for Carlsbad Homeowner 2014

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DOJ Loan Modification Approval

For Carlsbad, California Homeowner

Department of Justice Loan Modification obtained for Carlsbad homeowner in February of 2014. California Loan Modification Attorney explains the details of the loan modification process. See if The Law Offices of Michael Gaddis can help you with your loan modification. Schedule a free consultation when you call 760.487.8266
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DOJ Loan Approval Video Transcript

**Video auto-transcribed by YouTube, please excuse any inconsistencies.

Hi I’m Michael Gaddis. Recently my office obtaining a loan modification for a homeowner in Carlsbad California. This particular homeowner had a very difficult case. In fact it might have been one of the more challenging cases that I’ve ever encountered during my time at helping homeowners loan modifications.  The reason it was difficult was because the homeowner insisted on obtaining a Department of Justice R&D OJ loan modification Dooj loan modification flag on her file had been removed. The reason they have been removed just because bank of America I was removing flags on some other files to the fact that met the quota established by the Department of Justice duty Attorney General’s up so when she came to me. She insisted that she had receive a solicitations for the department of justice program. When I approached Bank of America they said yes, she was solicitor for the department of justice program but the flag has been removed so when I told the homeowner this she was upset to say the least so she insisted that I attempt to try and get the doja black book back on so she could be reevaluated for the program well that’s a pretty tall order I’m and to say the least. It was a lot effort to convince someone over it bank of America to attempt to put that flag back on fortunately for her she came to me and I have a lot of friends and our contacts I would say at Bank of America and I explain the situation to them how she her husband lost his job how she was solicit for the for the Department of Justice Program show the flag wasn’t there and I estimate there is any way at all that we can get this particular file reevaluated for the Department of Justice. My contacts told me yes I am will try to get the flag put back on, but we’re not making any promises so I said do your best and sure enough after a loss and I say a lot effort they were able to put the flag back on now just because the flag back on doesn’t necessarily mean that she’s going to qualify for it being eligible for something is different in qualifying for it. So we had overcome one hurdle hurl being that she was not eligible for it so now we have to see if she could qualify for a now I had run her numbers through many many times and I i was fairly certain that she had a legitimate shot at chaining a I’m Doga loan modification my only fear was that value in her area had risen quite a bit and he could influence the net present value test sure enough. When the initial result came back I’ll dare it was denied based on MTV failure; however they had an artificially high number for their value so I had to prepare pair Compton appeal the value I to see if I if there was any way that this loan modification to go through and and beat the net present value test. After I appeal value I they reran the numbers because they agreed with me that my Meyer my valuation was was correct after dereran the number sure enough she passed and a loan modification she got was pretty yet her payment didn’t go down that much and ask. Because you know DD Department of Justice although it’s a great program it does have certain limitations on the plus size aside it does allow homeowners to reduce their principal balance and in this case she did get a principal reduction in any 9800 me four dollars on the negative side doesn’t extend the AM stations are are the repayment period so well. However much time you have I left on your loan that’s how much time you have to repay your loan amount in this particular case the new principal a balance% uh alarm was nine hundred sixteen thousand that is a fairly large blowing out so the resulting payment didn’t necessarily on a result and a huge trent reduction in payments. Although she was granted a two percent interest rate again for the first five years so she was given a step remarks occasion so her interest rate is at the floor radio J doesn’t get any lower 2 percent. I’m and she was given an 89,000 884 dollar-plus production so all in all this is a great result considering the fact that all the hurdles that we had to overcome to get. If you have any questions are you have a scenario that you want tome to go through, feel free to give me a call I if free consultations and I welcome the opportunity to talk to your situation to see if there’s anything that I can do. I can promise you that I’ll be able to modify your loan but I can promise you that I will tell you the truth as far as I know it and I will analyze and let you know per share at least in my opinion whether I think it’s possible or not. So my name is Michael Gaddis. If you would like to contact me you can reach me at area code 760-692-5950, 760-692-5950 or you can go to my website at www.BIACalifornialoan modification attorney.com are here in Southern California. You can just stop by my office is located at 6104 innovation way in Carlsbad California. I help homeowners throughout the state California so if you’re in Northern California our Southern California Irvine or California or any California. If you need help I’m here for you. Thank you so much.

Rental Property Loan Modification and Principal Reduction Bank of America

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Bank of America Department of Justice Loan Modification Obtained for Homeowner in Antioch, CA

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The Law Offices of Michael Gaddis recently obtained a final Bank of America Department of Justice loan modification for a homeowner located in Antioch, CA.  Homeowners frequently put all of their trust and faith into the hands of their designated representative at their lender with the belief that 1) their lender has the homeowner’s best interests as their #1 priority; 2) their designated representative is going to provide them with valuable information and guidance that will give them an edge in their pursuit of a loan modification; 3) their designated representative has special inside knowledge or skills that will help them advance their loan modification package; 4) in the event something goes wrong their representative is the best source on what to do; and 5) in the event of an appeal, their dedicated representative will be their advocate through the appeal process.  This Bank of America Department of Justice loan modification is an example of why all of those beliefs are not true.  This homeowner contacted Michael Gaddis six (6) weeks away from a trustee sale.  He had been working diligently with his dedicated Bank of America representative for over a year and a half but was beginning to lose faith.  After taking advantage of a free consultation with Michael Gaddis the homeowner decided to retain Michael Gaddis to be his advocate at Bank of America.  Michael Gaddis knew that the homeowner’s Bank of America representative was not advising the homeowner properly and that the Bank of America representative was definitely not familiar with Department of Justice loan modification underwriting guidelines.  The best thing this homeowner did was to contact Michael Gaddis for a free consultation.  Upon receiving his final Bank of America Department of Justice loan modification documents the homeowner told Michael Gaddis, “I am convinced that had I not retained you that I would have lost my house.  There is no doubt in my mind.”  Homeowners need to remember that lenders represent investors and that lenders have their investors best interest as their priority, not the homeowners’ best interest.  Homeowners also need to keep in mind that their dedicated representative is not their advocate, merely a communication conduit and document collector.

The terms of the final Department of Justice loan modification call for a principal reduction of $97,623.77.  The new modified interest rate of 2.625% is fixed for 5 years after which the interest changes to 3.625% and is fixed for the remainder of the term.  The new principal, interest, taxes and insurance payment of $1,950.88 is over $400 a month less than what the homeowner was paying prior to becoming delinquent.

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/.

Bank of America Department of Justice Loan Modification Obtained in San Marcos, CA

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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/.

Bank of America Department of Justice Loan Modification with Principal Reduction Obtained for Homeowner in San Diego, CA

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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/.

Free Webinar- Your Questions Answered

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Your Questions Answered at this Free Webinar on Foreclosure, Short Sales, and Loss Mitigation

Get Your Questions Answered at this Free Webinar on Foreclosure, Short Sales, and Loss Mitigation. Hosted by Attorney & Real Estate Broker of Michael Gaddis, J.D. Realty Group

Hosted by Michael Gaddis, J.D. Attorney, Real Estate Broker, and Short Sale Expert.

This is a 1-hour live Q&A session where attendees will have the opportunity to get their personal foreclosure, short sale and loss mitigation questions answered by an attorney free of charge.

Seats are limited to give attendees adequate attention.

Reserve your spot now. http://goo.gl/aSFG8

Bank of America Department of Justice DOJ Loan Modification Obtained for Homeowner Located in Oceanside, CA

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The Law Offices of Michael Gaddis recently obtained a trial Department of Justice DOJ loan modification from Bank of America for a homeowner located in Oceanside, CA.  The DOJ loan modification provides for a potential principal reduction of $227,196.78 contingent upon successful completion of the DOJ loan modification trial period.  The trial documents also state that the initial interest rate for the final DOJ loan modification will be 2.75%.  The trial payment of $2,141.36 represents a nearly $300 a month reduction from what the homeowner was paying prior to becoming delinquent.  The first trial payment is due April 1, 2013 and concludes on June 1, 2013.

As is typical, the homeowner came to Michael Gaddis after attempting to modify several times either on her own or through other attorneys/loan modification companies.  The DOJ loan modification process is not easy and too many homeowners put their faith into people and entities that only put them into a worse position.  Michael Gaddis sees it all of the time.  Unfortunately many people do not hear about or find Michael Gaddis until close to the end.  Michael Gaddis represents their last hope.

If you are attempting to qualify for a DOJ loan modification or have been recently denied a DOJ loan modification it would be prudent to contact Michael Gaddis as soon as possible to schedule a free consultation to discuss your situation.  The homeowner in this case told Michael Gaddis that she wished she had found him sooner because she could have avoided so much stress and so many sleepless nights.

As Always, Michael Gaddis and his staff will continue to monitor the trial DOJ loan modification in order to ensure that a final DOJ loan modification is obtained from Bank of America.  To view a copy of this trial DOJ loan modification as well as other successful loan modifications procured by Michael Gaddis please click the following links: http://californialoanmodificationattorney.com/trials-modifications/ and http://californialoanmodificationattorney.com/trials-modifications/approved-trials-modifications-pg-2/

 

Bank of America Department of Justice Loan Modification Obtained for Homeowner Located in Laguna Beach, CA

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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/

Final Bank of America Department of Justice Loan Modification Obtained for Homeowners in San Diego, CA

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The Law Office of Michael Gaddis recently obtained a final Bank of America Department of Justice Loan Modification for homeowners located in the 92127 zip code of San Diego, CA.  The Bank of America Department of Justice loan modification permanently reduces the homeowners’ principal balance by $56,878.17 leaving an unpaid principal balance of $460,771.00 (“New UPB”").  This New UPB is extraordinary since the current market value of the house is around $492,000.  The Bank of America Department of Justice Loan Modification basically put the homeowners into an equity position.  The terms of the final loan modification call for a permanent fixed rate of 4.375% fixed for the remaining life of the loan.  The new principal, interest, taxes and insurance (“PITI”) payment of $2,843.52 represents a nearly $500 per month reduction from what the homeowners were paying prior to becoming delinquent.

The homeowners were extremely pleased with the result especially considering the fact that they now have an equity position in a home that they were previously upside down on.  Even though the interest rate is somewhat higher than the current market rate the reality is that starting in 12 months the homeowners can begin to research into refinance options through an FHA program which will allow them to procure a better interest rate AND, more importantly, stretch out the amortization term ( repayment period) from 24 years (as required by the Bank of America Department of Justice Program which does not allow for term extensions) to 30 years.

As always Michael Gaddis and his staff will continue to monitor the homeowners’ file in order to ensure that Bank of America receives the executed Department of Justice loan modification documents; that the terms of the Bank of America Department of Justice loan modification are properly uploaded into Bank of America’s system; and that Bank of America returns the homeowners’ file to regular servicing.  To view a copy of the Bank of America Department of Justice loan modification referenced in this blog as well as 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/