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.

Obstacles to Loan Modifications

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Every single day I get 10-12 phone calls from homeowners throughout the State of California asking me to review their loan modification scenario and determine if they truly have a chance at obtaining a loan modification.  During the past couple of weeks the scenarios that homeowners have been giving me are becoming more and more difficult.  The question is, what makes a loan modification scenario difficult?  Once I have the facts surrounding the homeowner’s scenario it does not take me long to determine the homeowner’s odds of success.  Some of the factors that make a loan modification application more challenging are as follows:

1.  Equity.  The bottom line is that equity is the enemy of loan modifications.  Loan modifications are not a right that a homeowner is entitled to, but rather a loss mitigation tool used by the investor owning the loan.  In other words the investor is in danger of losing money so the investor is looking for ways to minimize any potential losses.  So the investor weighs the risk of loss with the needs of the homeowner and determines whether the investor will lose more money by modifying the loan or foreclosing.  The problem with homeowner’s with equity is that the risk of loss to the investor is minimized if not extinguished all together.  When there is no danger of the investor losing money there is little incentive for the investor to agree to a modification and that homeowner will typically fail a loan modification review on the basis of Net Present Value (“NPV”) failure (for more information about NPV please click the following link   http://wp.me/p2NGF4-kT).  Homeowners also need to remember that the investor is only looking at what the investor is owed in relation to the first lien.  The investor could care less if there is a 2nd or 3rd lien on the property.  Since the first lien holder is in first position the first lien holder gets all of the proceeds from a sale to satisfy his lien, the junior liens only gets what is left, if anything.  Again, equity is the enemy of loan modifications.

2.  Self-Employed Homeowners.  From an underwriting perspective, self-employed homeowners are much more challenging than W-2 wage earners.  As such, self-employed homeowners have a very difficult time getting through the loan modification underwriting process.  The main reason is that there are many ways to present your self-employed income and the lenders have the discretion to independently determine what a homeowner’s self-employed income is.

3.  Multiple Houses.  Homeowners that own multiple properties also have a very difficult time obtaining a loan modification.  The primary reason for this is that owning multiple properties makes the underwriting process more involved.  The more involved the underwriting process the more difficult the loan modification review process.

4.  Loan Amounts Over $729,000.  Loans over $729,000 are not eligible for HAMP which limits the available programs.  Since loans over $729,000 are typically investor based modifications the level of scrutiny goes up as the loan amount increases.  High dollar loan modification reviews can be extremely lengthy and involve numerous document requests.

5.  Multiple Sources of Income:  Homeowners that have multiple sources of income including, but not limited to, room rental, family contributions, 2nd & 3rd jobs, mixtures of W-2 and self-employed income, disability, unemployment, etc. have a very difficult time presenting their financial situation to loan modification underwriters resulting in a more complicated review processes.

6. Negative Amortization Loans: Negative amortization loans are extremely problematic due to the fact that the minimum payment associated with the loan is usually very low.  Low scheduled payments create problems because the lender is typically looking for a solution that will provide the homeowner with a modified payment lower than their regularly scheduled payment.

These are just a few of the factors that can create a difficult loan modification scenario.  Most of these obstacles can be resolved if you know what you are doing.  However, if you do not know what you are doing, and 99% of homeowners and 3rd Parties do not, then you will merely get frustrated and end up giving up in the end. 

If you would like to take advantage of a free consultation with me please contact me at 888-242-2272 and I will review your situation and let you know my thoughts.



Final Indymac Loan Modification Obtained for Homeowner in Fallbrook, CA Deferred Principal Reduction of $78,827

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Michael Gaddis’ office received a final loan modification from Indymac for a client located in Fallbrook, CA.  The loan modification calls for deferred principal in the amount of $78,827 that is to be forgiven over the course of 3 years in 3 equal installments provide the homeowner remains current on his loan.  Prior to retaining Michael Gaddis the homeowner had tried to modify his loan for over a year.  He was a little skeptical at first due to horror stories that he had heard from friends and family about their experiences using loan modification service assistance providers.  However, Michael Gaddis spoke to him at great length about the loan modification process.  In the end the homeowner made the decision to utilize Michael Gaddis and the end result is a loan modification that will allow the homeowner to keep his home.

Nationstar Fannie Mae HAMP Loan Modification Obtained for Homeowner in Chula Vista, CA

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The Law Offices of Michael Gaddis recently obtained a HAMP trial loan modification for a homeowner located in Chula Vista, CA.  The loan was owned by Fannie Mae and serviced by Nationstar Mortgage.  The homeonwer had tried to modify the loan on her own for months before retaining Michael Gaddis to assist her.  By the time Michael Gaddis and his staff gathered the necessary information needed to properly review the file a Trustee Sale Date was set by Nationstar.  Knowing that stopping Trustee Sales alone is diffiucult but even more so when Fannie Mae or Freddie Mac are the investors, Michael Gaddis knew that time was of the essence.  The file was submitted to Nationstar who promptly reviewed the file and requested additional information.  Michael Gaddis’ staff obtained the needed documentation and sent it to Nationstar.  Two days later a Nationstar representative stated that there was not enough time to review the file due to the investor guidelines related to the pending Trustee Sale date.  Michael Gaddis knew that this file had an extremely good chance of qualifying for HAMP so he insisted on speaking to supervisors and senior management.  As the Trustee Sale approached Michael Gaddis expanded his efforts within Nationstar and with 1 day left before the sale he convinced Nationstar to review the file to see if the homeowner had a chance at qualifying.  Upon review, Nationstar agreed with Michael Gaddis and requested that Fannie Mae allow them to postpone the sale.  Less than a week from the date that the house was supposed to be sold Nationstar contacted Michael Gaddis and notified him that the homeowner had been approved for a trial and that the homeowner would be getting the paperwork in the mail within the next few days.

While the customer relations managers at Nationstar were little or no help in this matter, Michael Gaddis’ contacts at Nationstar were the exact opposite.  They were helpful and communicative and expeditious in their pursuit of a resolution.  Unlike senior management at other lenders, Michael Gaddis’ Nationstar contacts were extremely helpful and instrumental in this particular success story.  The lesson learned is that when it comes to Fannie Mae loans Nationstar’s Senior Management is willing to really try and assist homeowners, even when they are close to Trustee Sales.  This is something that other lenders/servicers refuse to do, usually putting the blame on Fannie Mae.  Nationstar facilitated this situation the way all lenders/services should.  Senior Management at other lenders/servicers could learn a few things from Nationstar.

The trial payment is around $700 less than what the homeowner was paying prior to going into default.  As always, Michael Gaddis and his staff will continue to monitor the homeowner’s trial period in order to ensure that a final loan modification is received.


Final Chase Loan Modification Obtained for Homeowner in Oceanside, CA

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The Law Offices of Michael Gaddis recently obtained a final loan modification from Chase for a homeowner located in Oceanside, CA.  Without a doubt, this loan modification was one of the most difficult loan modifications ever obtained by Michael Gaddis.  The modification took over 2 years to obtain.  While the homeowner’s financial situation was confusing for Chase, the real issues surrounded battles over owner occupancy, alleged (by Chase) extra sources of income which did not exist and arguments over the present market value of the property.  Chase continually tried to deny the file for Net Present Value (NPV), however, Michael Gaddis continually challenged Chase and, in the end, the homeowner received her loan modification.  This file is another example of how Michael Gaddis and his client/homeowner work together as a team to obtain a common goal.  The client was patient and understanding during the process which allowed Michael Gaddis to proceed in the manner that he determined to be the best course of action.

To view a copy of the loan modification please click the following link:  http://californialoanmodificationattorney.com/wp-content/uploads/2012/03/Chase-Modification-Oceanside2.pdf