Difficult Bank of America Loan Modification Success Story

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Difficult Bank of America Loan Modification Success Story

January 2014

This video describes how the Law Offices of Michael Gaddis obtained a trial Bank of America Loan Modification for a homeowner who had many previous failed attempts. Bank of America is a lender who is traditionally difficult to modify through still, Michael Gaddis was able to reduce the client’s monthly payment over $800.00 a month. If you need help seeking a loan modification with Bank of America call for a free consultation 760.692.5950 or email contact@michaelgaddis.com for a preliminary case review.

Difficult Bank of America Loan Modification Success Story Video Transcript

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

Hi I’m Michael Gaddis. My office recently obtained a trial loan modification  for a homeowner that had Bank of America in fact what I mean by reason is  little early today January 2013 doesn’t 14 so Bank of America  literally sent this to me just probably half an hour ago  this one made me extremely happy because when this owner came to me  and you tried several times like most my clients  and to obtain a loan modification US in chapter 13  he was paying an incredible amount of money  for this house his payment plan is  around thirty one hundred dollars plus because he was in a chapter 13  he had to pay a trustee payment the only reason he was in chapter 13  was to save his house so years ago  someone advise and that the only thing you can do to save his house was to file  chapter 13 he had no other debt  nothing else other than the house and so what he did is he file chapter 13  and continue to make the payments on the house plus the trustee payment so he was  paying  a lot of money to stay in this house so when he approached me  you know he said years he didn’t know how much longer he could  keep paying both this payment and the trustee payment any just was  wondering whether it wasn’t worth it for him to continue doing the chapter 13  he asked me if I can help them with a loan modification even though he was in  bankruptcy and I told them that I could  when I look at a situation and I could tell it was a little bit more  challenging because the self-employed and  you know self-employed people tend to have a little bit more difficult I’m and  others to try to get their loan modifications to but I had no doubt in  my mind that he should be able to obtain a loan modification  absolutely no doubt in my mind and I told him that I said I I am very sure  that I can get you a loan modification on your house  I am I mean every all the variables were there you know that he is a  bank deposits were reflecting good depositing good income sources  is on is value was low versus what he owed on the property  and everything was just looking really good is all payment was high  verses way is projected new payment would be all these things were  definitely  pointing in his favor so in I was sure is I could be  as someone can be that I could you know I had a great shot at getting a loan  modification  so we submitted a file and we ran into some obstacles  a course Bank of America is a very difficult bank in  it seems that their initial really responds to everything is to deny  deny fail net present value do this or do that  so you know if I never take their denials  her very seriously especially initially I  you know because I’m usually fairly certain that better I’m right and  they’re wrong  a I say that quietly but it’s true I’ll  so I challenge it I’m the first time we had a chance because they can run his  value  so I had to appeal it and appealed about you get some new comp the sport where I  thought the value should be an unhappy  rerun they took a long time during the appeal process and  and rewriting it wasn’t quite as easy as what a  are as a timely as I thought it would be and it kinda trickled into this new year  and what happened is after this the initial  after January 10th this year the CFPB consumer finance Protection Bureau  change the rules  which in turn I cause to Bank of America to change their decision in June in the way  that they generate approvals and denials  so what happen is even though the appeal was granted in in was  in process we had to wait so that the new decisioning engine kit run the  scenario through so patience pays off  and today I was on my weekly conference call at Bank of America and they told me  that this one had been approved for  a modification on a trial plan. The trial plan starts March 1st and is the payment is going be 2,374 dollars now this is a huge differences over eight hundred dollars a month less than  he was paying just for his payment alone  not including the trustee payment see now that he’s got a modification in the  only thing that revolved in this situation  are in the chapter 13 had to do with this house you just need to continue to  chapter 13 anymore so he can basically wrap up all of his problems in today s  and that payment difference between what he was out laying in cash before  and what he will now is significant I mean life changing  I mean he is East he is definitely in much better shape than he than he was  when he first saw me so  and he’s an extremely, extremely happy man  so and this is a great example as to what happens when you use patience persistence and knowledge  about how Bank of America works can benefit you and just keeping in touch in  and making things happen so my advice would be never give up  on your loan modification if you have any questions or comments or would like  to talk to me about your scenario please give me a call  is all tell you straight out whether I think I can do it or not if I don’t  think I cannot tell you  and I’ll tell you why I don’t think I can do it either but if I think I can  it’s it’s definitely worth your time before you give up before you say well  I’m gonna let the house to foreclosure on a short sale mejor de lo  before you do anything and ask to just please give me a call  if you live in the state of California it will definitely be worth your time  so thank you again for watching this video if you would like to get in touch  with me you can reach me  at 760 692 5950  760 692 5950  and are you can visit me in my web site www.californialoanmodificationattorney.com thank you so much.

Bankruptcy Loan Modification with Bank Of America Obtained by Michael Gaddis

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Bank of America Bankruptcy Loan Modification Successfully Obtained

Bankruptcy Loan Modification with Bank Of America Video Transcript

**Video auto-transcribed by Youtube, please excuse any incongruencies.

Hi I’m Michael Gaddis. My office recently obtained a final Bank of America loan modification for a homeowner located in Carlsbad California. When the homeowner approached me they had told me that they had tried numerous times to obtain a loan modification, numerous times they said I’m  so many times in fact they finally had filed chapter 13 (bankruptcy) in an effort to  try to save their house  so during the process they were actually at  as I said actively in a chapter 13 and they were  you know they’re making their house payments plus the trustee pain and it  was getting to be quite a bit for them  on they were a little bit skeptical because they had been with quite a few  different a  people in their attempts to a obtain a loan modification that got a lot of  counseling from  different types identities I believe they did not go they had been too  you know how they had been to you in a local you know housing counselors  they had approached other attorneys and it seems like they were just  scrambling trying to get anything they possibly could.

Finally they were referred to me by one in my previous clients and on when they came to me I thought there was a way to do there since their situation they did have a complicated situation. They’re self-employed and they had their incomes a little bit difficult to put on paper. However, we sat down to spend a lot of time going through it we were able to prepare financial package in loan modification application and send it to Bank of America and in the end we ended up getting a positive result and this is a pretty significant difference.

Their old payment was four thousand a hundred seven dollars that was just the principal and interest payments there  I’m as for a was 136 dollars insignificant  the modification  gave them a payment 2,614 dollars  so you’re talking about and at 2200 are swinging  in what their payment was and is now  and the modification is a step 3 modification  and this is this is the bankruptcy loan modification here it’s a step to rate my vacation  I’m that’s I’m I believe stars  at I will tell you in one second starts at 2 percent for the first three years  the with monthly P&I  2614 goes to 3 percent in your for with a payment  3,058 in your five it fixes for the remainder the terror at four percent  you with the payment of $3000 529  and I stand corrected it goes to 4.75  in year 6 for a final payment of $3000  897 dollars and thirty cents so  even in years six I’m sorry yeah even in your six  when it goes there and the payment is still significantly lower than underpaying for almost a thousand  dollars lower  you’re sick stay with their pain before so this is this  this loan modification is a significant improvement in their  situation allows them to keep their house  and Eddie and at the end of the day it was  it was in extremely important thing to them in and they were  most gracious in their appreciation at  loan modifications in bankruptcy date  their little bit different than regular loan modifications this particular loan  modification requires  bankruptcy approval other loan modification before it can close  so in other words even though we have a final modification here goes to the  post-closing Department a  America and we had a year a and order from the bankruptcy court basically  approving it  so that they could close out the file at Bank of America which we did take a nap in it is in the very final stages oppose closings as I  do this video

So, hopefully this a this video will give you kind of an idea some into situations that I encounter and if you have need a free consultation  please give me a call you can call me at area code 760  692 5950 760  692 5950. I’m Michael Gaddis and I help people throughout the state of California with traditional and bankruptcy loan modifications and no matter where you are you can call me or come into my office whichever you  prefer  and we can discuss your situation and I’ll let you know whether I think  realistically you have a a good chance that obtaining a loan modification or  not or whether I think I  I might be able to help you or not so thank you so much for watching this video.

See more successful Bank of America Loan Modifications Here

Bank of America Loan Modification Obtained for Self-Employed Homeowner in Valley Center, CA

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Obtaining a Bank of America loan modification can be extremely difficult to obtain, especially for the self-employed.  There are many reasons why self-employed borrowers have a more difficult time than W-2 wage earners but the realty is that the majority of the people that contact Michael Gaddis for a free consultation are self-employed.  The majority of homeowners that attempt to modify their loan on their own experience frustration and disbelief as loan modification application after loan modification application are denied.  The Law Offices of Michael Gaddis recently obtained a trial HAMP Bank of America  loan modification for a homeowner located in Valley Center, CA.  The homeowner, had already received one loan modification from Bank America and had made over 25 payments on it before becoming delinquent again.  To the homeowner’s credit his previous Bank of America loan modification was not very good.  It was a high interest rate interest-only that converted into a fixed principal and interest at 5.5% but on an amortization schedule of 21 years.  The short amortization was going to cause a huge increase in his payment.  The homeowner was self-employed and had tried to modify on his own.  He was referred to Michael Gaddis by a friend of his with a similar situation that Michael Gaddis had helped. 

The trial payment of $2,202.00 represents a nearly $350 a month reduction from what the homeowner was paying prior to becoming delinquent.  However, keep in mind that as is the case with all HAMP Bank of America loan modifications, the $2,202.00 represents a future principal and interest payment (as well as taxes and insurance) while the homeowner’s previous, and higher, payment was interest-only.  Plus, HAMP modifications are typically step-rate modifications which have very well thought out payment escalations.  This Bank of America trial loan modification was a big win for the homeowner who nearly cried when he obtained it.  The homeowner’s first trial payment is July 1, 2013.  The trial ends on September 1, 2013.

As always Michael Gaddis and his staff will continue to monitor the homeowner’s file during the trial period in order to ensure that a final Bank of America loan modification is obtained.  To view a copy of this trial Bank of America 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 Flag Removal

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Recently I have been made aware that Bank of America has been removing eligibility flags from loans that were formally eligible for the Department of Justice loan modification program.  I noticed that many new clients that had been previously denied were not being reconsidered for the Department of Justice Loan modification program when the file was being resubmitted under a change in circumstances (“CIC”).  Normally, if a borrower was eligible for a Department of Justice loan modification review and the borrower met the criteria established for a CIC review, the borrower would be able to be re-reviewed for the program.  As more and more of my clients have had their Department of Justice loan modification eligibility flag removed I inquired within Bank of America in order to investigate what was occurring.  Sure enough I was told that Bank of America had more than exceeded the principal reduction limits that Bank of America was obligated to perform under the Attorney General settlement.  While they are still processing many of the Department of Justice loan modification applications that are still eligible for the program, Bank of America and their investors have begun to gradually reduce the pool of remaining eligible loans.

To Bank of America’s credit since the onset of the Attorney General Settlement Bank of America has been very aggressive at complying with the requirements of the Attorney General Settlement, perhaps more so than any other lender.  The Department of Justice loan modification program has its pluses and minuses but overall, it has been an amazing program that has really helped many homeowners obtain loan modifications beyond their wildest dreams.  It is a little disconcerting to see that the pool of eligible borrowers is dwindling as the other loan modification programs at Bank of America, while still very helpful to borrowers are not nearly as aggressive.

What does this mean to homeowners struggling with their attempts to obtain a Department of Justice of loan modification?  It means that these homeowners should seek professional assistance as soon as possible because if their Department of Justice loan modification flag is lifted from Bank of America’s system, they could lose out on a fantastic opportunity to obtain an amazing loan modification.

Homeowners seeking a consultation on their efforts to obtain a Department of Justice loan modification from Bank of America should contact Michael Gaddis, J.D. to schedule a free consultation.  Time is of the essence because the removal of these eligibility flags is occurring at a rapid pace.  If you would like to copies of final Bank of America Department of Justice 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/.  To contact Michael Gaddis to schedule a free consultation please feel free to call 888-242-2272 or email Michael at Michael@frontierconsultationservices.com.  For more information about Michael Gaddis please feel free to view his website at www.californialoanmodificationattorney.com.

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 Loan Modification Problems: Underwriting, Trustee Sale Dates, Resubmissions and NPV Failures

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Homeowners having Bank of America as a servicer should be aware that Bank of America might soon be changing their policies and procedures for how loan modification applications are being reviewed, especially for homeowners that either have a Foreclosure Sale Date or have one approaching.  Up until about a year ago, Bank of America was the best lender on the planet to deal with.  They were responsive, efficient and eager to help homeowners, even ones with or near a Foreclosure Sale Date.  However, in the past year Bank of America has decided to tinker with processes and procedures that were working just fine.  In essence they have been trying to fix things that are not broken.

Now the pendulum has swung and Bank of America is now partnered with Wells Fargo as one of the most difficult lenders to deal with.  Everything at Bank of America has become difficult, even things that should be simple.  If you are a homeowner and are attempting a loan modification with Bank of America you should be aware of the fight that you might have ahead of you.  If you have happen to have a “cookie cutter” loan modification scenario that even a seven (7) year old could not screw up you might be fortunate enough to get through the process on your own.  However, most homeowners’ situation are not “cookie cutter”.

There are two important point that homeowners need to understand before attempting a loan modification.  The first thing is that the bank is not there to help you.  They are not you’re your friend.  Remember, the bank is a business, not a philanthropy or a non-profit institution.  They are there to facilitate your requests.   The very nature of what Net Present Value or (NPV) is demonstrates that the bank is an INVESTOR or REPRESENTS INVESTORS.  In case you do not know NPV is the last hurdle that a homeowner has to overcome in order to obtain a loan modification.  NPV is a test (financial tool) that allows the investor to determine whether the investor will lose money by modifying your loan or lose less money by foreclosing on you.  In essence, the bank is not there to help you, the bank is there to evaluate you to determine what it in THEIR best interests to do.  The second thing is that your assigned CRM is there to communicate with you and gather documents.  They should not, and are not qualified to, give you advice on your loan modification application.  They are not underwriters or decisioners.  Although they communicate with these departments and might see examples come through, they do not have specific knowledge related to either of these processes.

Now that you understand that the bank is not your friend and that your CRM has limited knowledge regarding specifics related to underwriting and decisioning, you must be made aware of the potential pitfulls you might face during the loan modification process.

Underwriting Guidelines:  The underwriting process at Bank of America is becoming more and more difficult.  The verification of Income stage or (VOI) stage is literally becoming a nightmare.  The level of scrutiny during the VOI stage at Bank of America has increased significantly.  Almost to the point of being absurd.  If the VOI underwriter has an issue with something in your loan modificaiton application the VOI underwriter will kick it back to the CRM.  These constant kickbacks cause delay after delay.  Sometimes the kickbacks are legitimate.  However many times the kickbacks are due to oversights  by the VOI underwriter such as missed or misread documents or miscalculation or omitted income or failure to read Letters of Explanation that are provided for the VOI underwriter’s benefit.  Homeowner’s that have the most difficult time at this stage are 1) self-employed homeowners, especially if they have multiple businesses; 2) homeowners with multiple properties; 3) homeowners with multiple sources of income, for example, room rents, social security, disability, etc.; 4) homeowners that have established LLCs or S-Corps; 5) homeowners with non-borrower spouses or partners; 6) homeowners with W-2 professions that have difficult to interpret paystubs like nurses, pastors and commission based jobs.

Underwriting is difficult because you cannot speak to the underwriter directly to fix problems.  In order to successfully navigate through the VOI stage you must be diligent; know how to identify mistakes; and know how to effectively communicate those mistakes through a conduit (your CRM).  It is very difficult and frustrating.

 Resubmissions:  Until recently homeowners could apply and then reapply and reapply and reapply.  From what I am hearing Bank of America is instituting new policies and procedures that are going to prevent perceived abuses and address inefficiencies.  Soon reapplying for a loan modification is going to become more difficult.  Do not wait until the last minute before seeking professional help or you might regret it.

Trustee Sales:  Bank of America has traditionally been one of the more accommodating lenders when it comes to Trustee Sales.  As I mentioned, I have been a big fan of Bank of America for their willingness to entertain even last second loan modification requests.  I have recently been made aware that Bank of America might be changing their policies and will have a very low tolerance for late and sloppy submissions.  Again, don’t wait until the last minute to seek help.

NPV Failures:  Probably the most frustrating aspect of Bank of America is dealing with erroneous NPV failures.  There are 2 ways to potentially deal with NPV failures.  1) is to appeal and 2) is to resubmit under a change in circumstances.  Appealing is very difficult because first you have to know what to appeal and then you have to navigate through the appeal process.  Resubmitting is also challenging because you have to establish a satisfactory change in circumstances.

In short you have to be careful. If you think you are going to need help do not wait until the last minute to seek it out.




Wells Fargo (Wachovia) HAMP Trial Loan Modification Obtained for Homeowner Located in Escondido, CA

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The Law Offices of Michael Gaddis recently obtained a HAMP Trial Loan Modification from Wells Fargo.  Prior to Wells Fargo the homeowner’s lender was Wachovia.  The new HAMP trial payment of $1,239.66 represents a nearly $200 a month reduction from what the homeowner was paying prior to becoming delinquent.  This particular homeowner was significantly underwater on her house.  Her LTV was around 184% which represents a substantial value loss.

When it comes to Wells Fargo loans, Michael Gaddis prefers to work on former Wachovia loans rather than ASC or Wells Fargo originated loans.  As always, Michael Gaddis and staff will continue to monitor the trial period in order to ensure that a final HAMP loan modification is obtained.

Bank of America FHA Loan Modification Obtained for Homeowner Located in Oceanside, CA

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Miracles do happen.  They really do.  The Law Offices of Michael Gaddis recently obtained a final FHA loan modification from Bank of America for a homeowner located in Oceanside, CA.  FHA loans are, without a doubt, the toughest loans to modify due to the fact that the risk of loss to the investor is already mitigated as it is a federally insured loan.  Michael Gaddis worked on this loan for nearly 3 years.  It is impossible to express the joy Michael Gaddis felt for this homeowner when he found out that, finally, after all of this time, the homeowner was going to keep his home.  To the homeowner’s credit he never lost faith in Michael Gaddis which is a tough thing to do considering the length of time passed during the loan modification process.  To Bank of America and FHA’s defense, the homeowner had a slightly unusually situation in that his brother, the co-borrower, moved out of the house and left the country for months without telling anyone, including his brother or his mother who lived with them.  Part of the delay was caused by the prodigal brother.

FHA loans are very strict with their underwriting requirements and it seemed that hurdle after hurdle needed to be overcome.  In the end, the homeowner received a wonderful modification that will ensure that he is able to keep his home.  The loan modification calls for a fixed 3.875% interest rate and a payment of $1,168.12 which is over a $300 a month savings from what the homeowner was paying prior to becoming delinquent.

Michael Gaddis has a renewed sense of confidence in his ability to assist homeowner’s with FHA loans.  As always, Michael Gaddis and his staff will continue to monitor the file in order to ensure that the final loan modification paperwork is received by Bank of America; that the new modified terms are properly uploaded into Bank of America’s system; and that Bank of America returns the homeowner’s account to regular servicing.

To view a copy of this loan modification please click the following link:  http://californialoanmodificationattorney.com/wp-content/uploads/2012/03/Bank-of-America-Modification-Oceanside6.pdf

Bank of America Department of Justice (“DOJ”) Trial Loan Modification Obtained for Homeowner Located in Moreno Valley, CA Proposed Principal Reduction of $193,644.24

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The Law Offices of Michael Gaddis recently obtained a DOJ trial loan modification from Bank of America for a homeowner located in Moreno Valley, CA.  The trial documents propose a principal reduction of $193,644.24 contingent upon the successful completion of the trial period.  The trial payment of $1,764.97 reflects an over $1,300 per month reduction from what the homeowner was paying per month.  The process for this homeowner took a long time.  Bank of America’s underwriters can be very difficult and this file proved no different.  However, Michael Gaddis was persistent and continued to push Bank of America’s underwriters until this trial modification was obtained.

Michael Gaddis and his staff will continue to monitor the file during the trial period in order to ensure that a final DOJ loan modification is obtained.

To view a copy of the DOJ trial loan modification please click the following link:  http://californialoanmodificationattorney.com/wp-content/uploads/2012/03/B-of-A-Modification-Moreno-Valley.pdf

Final Bank of America Loan Modification Obtained for Homeowner Located in San Diego, CA

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The Law Offices of Michael Gaddis obtained a final loan modification for a homeowner located in San Diego, CA.  The story behind this particular loan modification is an example of what happens to a homeowner when the homeowner trusts the lender too much.  The homeowner called Michael Gaddis on a Friday around 1:00 in the afternoon and told him that she had a sale on Monday morning at 10:00am.  Michael Gaddis asked the homeowner why she had waited so long before contacting him.  The homeowner responded that she had been working with Bank of America’s customer outreach office in San Diego and that she had been told by her CRM that her modification was under review and that her sale was on hold.  The homeowner went on to say that she believed that Bank of America was going to help her and did not believe that she needed the assistance of a lawyer or any third party for that matter.  However, the night before, Thursday, at around 5:45pm she received a call from her CRM who told her that her loan modification had been denied and that her sale was moving forward as scheduled.  The homeowner told Michael Gaddis that she would have called him before 1:00pm but she had to track down her neighbor that Michael Gaddis had already helped and he, in turn, had to find Michael Gaddis’ contact number and that took him until 12:58pm and that is why she was calling at 1:00pm the business day before her scheduled sale.  Michael Gaddis told her to get into the office ASAP and that while he could not promise to stop the sale he would try.  The homeowner came into the office with all of her documentation and Michael Gaddis contacted Bank of America and stopped the sale by resubmitting the loan modification application.  The file was expedited and within 3 weeks Michael Gaddis was able to obtain a trial loan modification.

The final loan modification is a step rate modification starting at 2% for 3 years, then moving to 3% for year 4, 4% for year 5 and then 4.375% for the remaining term.  The loan is owned and serviced by Bank of America.

Michael Gaddis and his staff will continue to monitor the file in order to ensure that the final loan modification paperwork is received by Bank of America; that Bank of America properly uploads the modified terms into their system; and that Bank of America returns the homeowner’s file to regular servicing.

To view a copy of the Bank of America loan modification please click the following link:  http://californialoanmodificationattorney.com/wp-content/uploads/2012/03/B-of-A-Modification-San-Diego.pdf