Final Chase HAMP Loan Modification
The Law Offices of Michael Gaddis recently obtained a final HAMP loan modification from Chase for a homeowner located in Oceanside, CA. Chase was the servicer of the loan and Fannie Mae (“FNMA”) was the investor. FNMA is notorious for being a difficult investor to deal with, especially if a homeowner is approaching a Trustee Sale. Chase has come a long way in processing loan modification applications. Michael Gaddis really likes working on Chase files. At one time, Chase was the absolute worst entity on the planet to deal with when attempting to obtain a loan modification. However, Chase has developed into one of the better servicers for distressed homeowners. They are responsive and communicate well. Chase’s underwriting is significantly more fluid than it once was and they are one of the more accommodating lenders to deal with for homeowners near a trustee sale. With that being said, loan modifications are still very difficult to obtain and if a homeowner has been denied once or twice at the most, that homeowner should not wait until the last minute before seeking out “competent” assistance.
The homeowners in this situation had tried multiple times on their own to modify their loan prior to retaining Michael Gaddis. As soon as he reviewed the homeowners’ previous submissions Michael Gaddis knew why they had previously failed. Once retained Michael Gaddis addressed the areas that he thought were preventing approval and then submitted the loan modification application to Chase. Shortly thereafter, to the bewilderment of the homeowners, Chase responded to the newly submitted loan modification application by issuing a trial loan modification. After the homeowners completed the 3 month trial plan Chase issued the final HAMP loan modification documents. The terms of the final HAMP loan modification call for a step-rate modification. The initial interest rate was set at 2% and will last for 5 years. In year 6 the interest rate will increase to 3% and in year 7 the interest rate will increase one more time to 3.625% and remain at 3.625% for the end of the term which was extended to 40 years. The new modified payment of $1,477.58 represents an over $1,000 a month reduction from what the homeowner was paying prior to becoming delinquent.
Michael Gaddis and his staff will continue to monitor the homeowner’s file in order to ensure that Chase receives the signed HAMP loan modification; that Chase properly uploads the new modified terms into their system; and that Chase returns the homeowners file to regular servicing.
To view a copy of the final HAMP loan modification please click the following link: http://californialoanmodificationattorney.com/wp-content/uploads/2012/03/Bank-of-America-Modification-Chula-Vista2.pdf
Other Chase Hamp Loan Modifications: http://californialoanmodificationattorney.com/?s=Chase+HAMP
The Law Offices of Michael Gaddis recently obtained a Bank of America loan modification for a homeowner located in Vista, CA. The loan was serviced by Bank of America but owned by Fannie Mae. The Bank of America loan modification was a HAMP trial which will require the homeowner to make three (3) trial payments over the course of three (3) months. Prior to retaining Michael Gaddis the homeowner had tried to modify the loan on his own with the assistance of his brother-in-law, a real estate agent. After a year or so of failure, the homeowner decided to seek professional help in his pursuit of a loan modification. Frequently, homeowners attempt to modify their loans with the assistance of people that are not qualified or overly knowledgeable in loan modifications. Sometimes, this results in disastor the homeowner, however, sometimes, homeowners recognize early enough that professional help is needed and seek assistance from a qualifed loan modification professional. The problem is that the longer the homeowner waits before seeking professional help the more difficult the situation becomes, even for a loan modification professional. In this situation, the homeowner owned an additional rental property which increased the degree of difficulty for the underwriting review, especially the way that the homeowner was handling the rental property. The key to Michael Gaddis’ success at modifying loans is his knowledge of underwriting requirements which allows him the ability to foresee potential issues and address these issues prior to submission.
The trial payment of $1,541.19 begins on January 1, 2012, and represents an over $600 a month reduction from 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 a final Bank of America loan modification is obtained for the homeowner.
To view a copy of this HAMP trial loan modification please click the following link: http://californialoanmodificationattorney.com/wp-content/uploads/2012/03/Bank-of-America-Modification-Vista5.pdf
The Law Offices of Michael Gaddis obtained a final loan modification for a homeowner located in El Cajon, CA. The loan is serviced by CitiMortgage but the investor was Fannie Mae. This particular loan modification was challenging because the property’s loan-to-value (“LTV”) was below 100% meaning that the property had a small amount of equity. Homeowners that seek loan modifications when their LTV is 100% or below face a difficult task of obtaining a loan modification due to potential NPV failure. NPV is the last test that loan modifications are run through before a final decision is made. A passing NPV means that the homeowner’s proposed loan modification is in the long term financial best interests of the investor. Conversely, NPV failure means that the homeowner’s proposed loan modification is not in the long term financial best interests of the investor. Michael Gaddis was initially concerned that this homeowner might have an issue with NPV. The good news was the whatever equity the homeowner had was minuscule and did not adversely affect the NPV evaluation.
The other issue with this loan modification application was that the homeowners were making too much money to qualify for HAMP. Michael Gaddis explained to the homeowners that their best bet was to obtain a Fannie Mae in-house modification.
The terms of the loan modification extended the term of the loan to 40 years and reduced their interest rate to 4.625%. Under the circumstances, with the LTV being below 100% and the homeowner’s income being high compared to the loan amount this was a very successful loan modification. The new payment of $1,312.99 P&I is over $400 less than what the homeowner was paying prior to the loan modification.
The homeowners are extremely happy with the loan modification. As always, Michael Gaddis and his staff will continue to monitor the file in order to ensure that CitiMortgage receives the signed loan modification agreement; that the new modified terms are properly uploaded into the system; and that CitiMortgage returns the file to regular servicing.
The Law Offices of Michael Gaddis recently obtained a final loan modification for a homeowner having a property in Lake Arrowhead, CA. The loan was serviced by Cenlar but owned by Freddie Mac. The property was a rental. Obtaining loan modifications on non-owner occupied properties is very difficult. The solution for this particular property was to defer nearly 30% of the unpaid principal balance to the end of the note as a non-interest bearing deferral and charge interest and amortize the remaining principal balance. The resulting payment of $773.45 per month is just short of $500 per month less than what the homeowner was paying prior to the modification.
Michael Gaddis and his staff will continue to monitor the homeowner’s file in order to ensure that the final loan modification is received by Cenlar; that the loan modification is properly uploaded into Cenlar’s system; and that the homeowner’s account is returned to regular servicing.
To view a copy of the final Cenlar loan modification please click the following link: http://californialoanmodificationattorney.com/wp-content/uploads/2012/03/Cenlar-Modification-Lake-Arrowhead.pdf
The Law Offices of Michael Gaddis recently received a final HAMP loan modification for a homeowner located in Chula Vista, CA. Nationstar Mortgage was the servicer and Fannie Mae was the investor. The loan modification is a step-rate loan modification with an initial interest rate of 2% for 5 years, 3% for year 6 and a permanent interest rate of 3.625 for the remainder of the term. This final loan modification is the culmination of a rather difficult loan modification process that included an impending trustee sale and required the intervention of Nationstar senior management. Fannie Mae loans are difficult no matter what servicer. Fortunately for the homeowners, their servicer was Nationstar.
Michael Gaddis and his staff will continue to monitor the file in order to ensure that Nationstar receives the final loan modification documents; that Nationstar properly uploads the final modification terms into their system; and that Nationstar returns the homeowner’s account to regular servicing.
To view a copy of the Nationstar Final HAMP loan modification please click the following link: http://californialoanmodificationattorney.com/wp-content/uploads/2012/03/Nationstar-Modification-Chula-Vista-7-11.pdf
Two of the most difficult investors to deal with in attempting to obtain a loan modification are Fannie Mae and Freddie Mac. Whenever a homeowner applies for a loan modification (it does not matter who the servicer is) the servicer will first attempt to run the loan modification application through the Home Affordable Modification Program (“HAMP) using the guidelines established by the US Department of Treasury. The servicers interpret these guidelines very strictly because they are subject to audit by the Treasury Department and, thus, do their best to ensure that all rules and regulations pertaining to to HAMP have been met. If there is any question or if there are any issues surrounding the file the servicer will typically deny the file. Once a file has been denied the servicer will then review the loan modification application for an investor based modification. If a homeowner fails both the HAMP and investor based modification reviews the file will be denied and the homeowner will receive a letter stating that their only options are a short sale or a deed-in-lieu of foreclosure.
I would not suggest that a homeowner give up fighting for their house just because a servicer tells them that their file has been denied. HAMP is quirky and an otherwise modifiable loan can be denied for small issues or oversights on the part of a homeowner in the presentation of their file to the lender. Additionally, servicers make mistakes. It is not uncommon for a servicer to make one or more mistakes when reviewing a loan modification file. Identifying these mistakes and challenging the servicer is crucial. Do not assume that their review is correct. Also, the rules for HAMP and the underwriting guidelines established by Freddie Mac and Fannie Mae are quirky. A homeowner needs to understand that slight nuances in their loan modification application can be the difference between success and failure. Lastly, the NPV test that the servicer runs can also have errors in it. Sometimes there are numerous errors. Whenever a potential client contacts me regarding NPV failure the first thing I ask them for is a copy of their NPV results.
Time is very important if you have a Freddie Mac or Fannie Mae loan. If you think you need help with your loan modification application seek help sooner rather than later. Freddie Mac and Fannie Mae have very little tolerance for last minute loan modification applications, even if the delay is the servicers fault and not yours.
Homeowners that tend to have the most difficult time modifying Fannie and Freddie Mac loans are typically