Bankruptcy Loan Modification with Bank Of America Obtained by Michael Gaddis

Subscribe to Rss Feed

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

Net Present Value, NPV Denials- Disputing Loan Modifications

Subscribe to Rss Feed

Net Present Value or NPV Denials

NPV Denials Does Not Mean The End of the Road

Video Transcript:

Hi I’m Michael Gaddis.

I’d like to take a few moments today to discuss loan modification denials.  One of the main reasons that people are given on why their loan modification has failed is called an NPV or net present value. Net present value is basically a computer program that tells the investor whether you’re worth more to modify or to foreclose on. Now, there are a lot of factors that go into a net present value analysis. However, there are some heavyweight factors. One of those factors is income and another factor is how much your house is worth.  Obviously, loan modifications are about risk of loss to the investor. As the investor stands to lose more and more money through a foreclosure, the incentive for the investor to work with the homeowner to help them achieve a modification is greater. As a result, increasing property values have been causing more and more NPV denials because the financial loss to the investor is becoming less and less.  Now home value is not the only reason a that could be affecting the result to the NPV. There are lots of different values and fields in the NPV analysis that are going to be making a final determination of whether homeowners are going to obtain a loan modification.

However, home value is a heavyweight factor as is income as is a numerous other issues which could be identified as being input into the computer incorrectly or that were arm you know a result of a bad under any so if you have an issue with an NPV, the first thing you want to do is not panic you don’t want to necessarily give up and say oh I guess I’ve lost my house I failed NPV.  What you want to do is get a second opinion you want to have somebody who knows what they’re talking about.  Read through your NPV data sheet to see if there’s any issues with it beyond what you can see. Because, believe it or not, every field in there has a reason for being there or wouldn’t be there.  It’s very important that all of those fields are accurate so if you have recently received a net present value denial or failure, you might want to give someone like myself or somebody else to call that can give you a solid basis for a second opinion on whether or not you know it’s to your advantage to either appeal or resubmit a loan modification package.

Contact The Law Offices of Michael Gaddis today for Loan Modification Help

See Loan Modification Success Stories

You can reach me at my Carlsbad office Monday through Friday at 760.692.5950 Please mention this video when you call. Best of luck.

A New Video Testimonial for San Diego Loan Modification Attorney

Subscribe to Rss Feed

San Diego Loan Modification Attorney, Michael Gaddis Adds Another Success Story

In this video testimonial the Huffakers, a frustrated San Diego family that was facing foreclosure, tell how they finally found success with San Diego loan modification attorney after more than a year of resubmitting loan modification paperwork and battling banks on their own. Unfortunately this is an all too common scenario when trying to get a mortgage modified without the help of a professional advocate.  The Law Offices of Michael Gaddis, which specializes in helping California families with their mortgages and distressed properties, successfully modified the family’s loan and helped them stay in their home with a manageable payments.  See if The Law Offices of Michael Gaddis can you help you stay in your home today. Call 760.692.5950 or toll free 888.242.2272. Consultations are Free.

Watch More Video Success Stories from Clients of San Diego Loan Modification Attorney, Michael Gaddis

Watch video testimonials from real clientls of San Diego Loan Modification Attorney, Michael Gaddis

Related Articles:

Frequently Asked Loan Modification Questions | Common Loan Modification Problems | What Is a Loan Modification?

Bank of America Transferring Servicing of Numerous Loans to Nationstar

Subscribe to Rss Feed

Last week thousands of homeowners currently with Bank of America were notified that the servicing of their home loans has been transferred to Nationstar.  The transfer will take effect on July 1, 2013 and will be problematic for those homeowners currently in loan modification reviews or in the middle of short selling their home with Bank of America.  Bank of America appears to be very focused on transferring a large portion of their servicing portfolio.  In the past year Bank of America has transferred loans to Select Portfolio Servicing, Select Loan Servicing, Ocwen, Everhome and RCS.  These transfers cause headaches for homeowners currently engaged in loan modification reviews.  Not only does the homeowner typically have to start over with the new servicer, it is possible that homeowners will no longer be eligible for the same modification programs that they were being considered for while their loans were with Bank of America.  Servicing transfers mean that the investors have entered into a new servicing agreement with the new servicer and loan modification rules and guidelines are part of that new servicing agreement.  For example, many loans that were eligible for a Department of Justice (“DOJ”) principal reduction loan modification review may no longer be eligible for DOJ upon transfer.  Unfortunately, there is not much a homeowner can do about that.

The important message is for homeowners having Bank of America as their servicer is to push to get their loan modifications resolved before another transfer takes place.  Homeowners that have been struggling to obtain a loan modification without the assistance of a professional might want to consider seeking out professional assistance at this time.  Failure to act could result in a homeowner either losing eligibility for a loan modification program or being transferred to a more difficult servicer.  

 Michael Gaddis has a very strong relationship with Bank of America and prefers working with Bank of America over other servicers.   To schedule a free consultation with Michael Gaddis please call 888-242-2272. To view copies of the Bank of America Loan Modifications obtained by Michael Gaddis as well as other successful loan modifications procured by Michael Gaddis please click the following links: and

Free Webinar- Your Questions Answered

Subscribe to Rss Feed
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.

Cenlar Final Loan Modification Obtained for Homeowner Located in Lake Arrowhead, CA

Subscribe to Rss Feed

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:

Green Tree Trial HAMP Loan Modification Obtained for Homeowner located in Coachella, CA

Subscribe to Rss Feed

The Law Offices of Michael Gaddis recently received a trial loan modification from Green Tree for a homeowner located in Coachella, CA.  The loan is owned by Fannie Mae.  The trial payment reflects a potential reduction in payments of nearly $600 a month.  Michael Gaddis and his staff will continue to monitor the file during the trial period in order to ensure that a final loan modification is obtained.

To view a copy of the Green Tree trial HAMP loan modification please click the following link:

Nationstar Final HAMP Loan Modification obtained for homeowner located in Chula Vista, CA

Subscribe to Rss Feed

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:


Bank of America Department of Justice (“DOJ”) Trial Loan Modification Obtained for Homeowner in San Marcos, CA Potential Principal Reduction of $191,012

Subscribe to Rss Feed

The Law Offices of Michael Gaddis recently obtained a trial modification from Bank of America for a homeowner located in San Marcos, CA with a potential $191,012 principal reduction.  The homeowner had been trying to modify his loan for over 2 years prior to retaining Michael Gaddis.  The trial payment represents an over $17oo reduction from what the homeowner was paying before going late.  As always, Michael Gaddis and his staff will continue to monitor the homeowner during the trial period in order to ensure that a final loan modification is obtained.

To view a copy of the DOJ trial loan modification please click on the following link:

Net Present Value NPV: If You Have Been Denied For A Loan Modification…Don’t Give Up!

Subscribe to Rss Feed

Net Present Value NPV

Every day thousands of homeowners receive loan modification (net present value npv) denial letters from their lenders.  Many decide to give up and pursue alternatives such as short sales or deed in lieu of foreclosures.  The reality is that many of these homeowners should not have been denied or were denied based on errors.  Unfortunately, these homeowners have no idea that they should not have been denied or, at the least, should have had an opportunity to be reconsidered for a loan modification with proper data in place.  Another unfortunate reality is that many homeowners have used 3rd parties that they relied on to provide them guidance that either 1) are simply not qualified to detect any potential issues or errors made by the lender 2) are not overly motivated to really try and obtain a loan modification especially when the 3rd party pressures the homeowner upon denial to use their short sale services or 3) do not have the ability to push the lender to properly reconsider the homeowner’s loan modification request.  These particular homeowner’s typically acquiesce and resolve themselves to short sale their home.

The first thing a homeowner needs to realize is that the lenders are NOT their friends.  No matter what a lender tells you, the lender is not there to HELP a homeowner.  Lenders are for-profit businesses and they service loans for investors.  Investors are not in the business of “helping” homeowners.  Investors are in the business of maximizing their profits and/or minimizing their loses.  For a lender to tell a homeowner that they are there to help them is ludicrous.  What they should say is that they are there to help themselves.  What they really want to do is obtain all of your documentation and financial situation so that they can assess how the investor will lose less money.  In other words, based upon what you give them and what they calculate, will the investor lose less money by modifying your loan or will the investor lose less money by foreclosing.  Period.  There is no philanthropic intent or motiviation to a lender’s loan modification analysis.  So the key to obtaining a loan modification is to make sure that you present your information as accurately as possible and present it in such a way as to give you the best chance at passing their loan modification testing matrix.  Lenders are diligent in their pursuit of this information because attempting to mitigate their damages is necessary to protect their investors’ financial investments as well as to protect the lender from any potential liability arising from their failure to diligently pursue mitigation.

There are many reasons why a homeowner could be denied for a loan modification including, but not limited to, net present value NPV failure, presenting documentation or information that does not meet investor guidelines, failure of the lender’s underwriter to properly follow their investor guidelines, not presenting income accurately or in accord with investor guidelines, missing documents or submitting an incomplete package, if current, failure to meet Imminent Default Department hardship guidelines, borrowers with excessive equity via net present value NPV failure, submitting an otherwise modifiable loan modification package too close to a Trustee Sale date or very stringent investor guidelines.  All of these are reasons why someone might fail a loan modification analysis.

Not all of these reasons for denial are able to be overcome and homeowners denied for valid reasons or reasons beyond their control will have no choice but to 1) bring their loan current 2) attempt to obtain a repayment plan for the past due amount 3) continue trying to make the payments on their existing note no matter how difficult 4) if the homeowner is behind and unable to bring the loan current, by filing a Chapter 13 bankruptcy which will result in the homeowner having to make the existing payment on their note PLUS a trustee payment or 5) short selling their home.  The reality is that not every homeowner will be able to obtain a loan modification.

With that being said, many of the aforementioned reasons, ARE able to be overcome if the homeowner is assisted by a person or entity that 1) has the homeowner’s best interest at heart and 2) has the experience, knowledge and connections within the lender to address and resolve any potential issues.  For the lucky few, obtaining a loan modification is easy because the presentation of their loan modification package just so happens to fix the box that the lender has established for loan modification approvals and no errors were made by the lender during the process.  For the rest of the homeowners, obtaining a loan modification is extremely difficult, time consuming and stressful.  It is these homeowners that need to seek the advice of a competent 3rd party to help them.

The important thing is not to lose hope.  If you really desire to keep your home then keep fighting and attempt to find someone that you trust to help you.  However, you should keep an eye out for some warning signs that a 3rd party might not be the right choice for you.  In analyzing your situation a 3rd party should consider all of the information surrounding your situation.  If a 3rd party seems more preoccupied with talking to you about how much they charge for their services or discussing your payment options without first performing an in depth analysis you should be concerned.  If a 3rd party tells you that you qualify for a loan modification based purely off your oral representations of your situation you should be concerned.  A proper analysis of your situation should entail a thorough review of your financial documentation and should not be based only on a homeonwer’s statement as to their financial situation.  If a 3rd party tells you that you have a 100% chance of success you should be concerned.  No one should be able to look you into the eye and tell you that you have a 100% chance of success.

While it is important not to lose hope it is also important to not be gullible.  Do not let your hope turn into desperation.  Many loan modification companies consist of ex-real estate agents and mortgage originators, car salesmen and even cell phone sales people.  Remember, that they are very good at selling.  Sometimes they will attempt to sell you dreams consisting of leprechauns and unicorns.  It is important to remain grounded.  If you get a bad feeling about a particular 3rd party then you should look for another one.  One more piece of advice.  If you are working with a law office or law center you should be able to speak directly with the attorney that is supposed to be assisting you, not the attorney’s assistant or paralegal.  If you are unable to speak directly with the attorney you should find a different attorney that you are able to speak with directly.

The bottom line is don’t lose hope!