Final HAMP Wells Fargo Loan Modification Obtained for Homeowner in San Diego, CA

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The Law Offices of Michael Gaddis recently obtained a final HAMP Wells Fargo loan modification for a homeowner located in San Diego, CA.  The homeowner’s contacted Michael Gaddis after numerous unsuccessful attempts to obtain a loan modification directly from Wells Fargo.  During the initial consultation Michael Gaddis immediately understood the cause of the homeowner’s failed attempts.  Michael Gaddis determined that the homeowner was struggling during the underwriting phase of the loan modification review process.  The homeowner was self-employed and Wells Fargo’s underwriters were taking liberties in their attempts to ascertain the homeowner’s income.  Underwriting is one of the most frustrating parts of attempting to obtain a loan modification.  The term “underwriting” is an enigmatic term.  Homeowners very rarely, if ever, are able to actually talk to underwriters and when homeowners call in to check status with their lender they are frequently told, “Your file is in underwriting” or “Your file is with the underwriter” or “The underwriter is requesting additional information” or “Your file passed underwriting” or “The underwriter needs an explanation regarding some issues”.  The truth is that an underwriter can make or break a homeowner’s chances at obtaining a loan modification.  In a lot of ways, especially with self-employed homeowners, the underwriting is very subjective.  The lenders have set underwriting guidelines and procedures that the underwriters are supposed to follow but some of these guidelines are not black and white.  It is in these situations that underwriting can cause problems.  Take W-2 income for example.  There are a few ways that W-2 income can be calculated.  You could calculate the income based upon the YTD Gross income or by using frequency (pay period) calculations.  Additionally, there are many types of pay that a homeowner can argue should or not should not be used by the underwriter in performing income calculations (i.e. stock distributions, one time bonus payouts, unusual overtime activity, etc.).  The key to successfully overcoming underwriting is to be able to speak their language; in essence, the better versed the homeowner is with the rules and guidelines that the underwriter is supposed to follow the better the chances the homeowner has at insuring that the homeowner’s loan modification application is properly run through the NPV test.

The homeowner in this situation was extremely pleased with the results of her loan modification application.  First of all, Wells Fargo forgave $108,966.51 of the unpaid principal balance resulting in a new modified principal balance of $360,000.  The terms of the Wells Fargo loan modification, as is the case with many HAMP loan modifications, call for a step-rate modification.  The interest rate starts at 2% for five (5) years, followed by 3% in year six (6), followed by 4% in year seven (7) and then permanently fixing at 4.375% for the remainder of the amortized term.  The homeowner’s new principal, interest, taxes and insurance payment of $1,544.17 resulted in an over $600 per month PITI 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 1)  the final Wells Fargo Loan Modification paperwork is received by Wells Fargo; 2) Wells Fargo properly uploads the modified terms into their system; and 3) Wells Fargo returns the homeowner’s file to regular servicing.  If you would like to see a copy of the Wells Fargo Loan Modification referenced in this article or review other loan modifications obtained by Michael Gaddis please click the following links:  http://californialoanmodificationattorney.com/approved-loan-modifications-and-trials/ and http://californialoanmodificationattorney.com/trials-modifications/approved-trials-modifications-pg-2/.

Final Wells Fargo Loan Modification Obtained for Homeowner in Anaheim, CA

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The Law Offices of Michael Gaddis recently obtained a Final Wells Fargo Loan Modification for a homeowner located in Anaheim, CA.  Historically, one of the most difficult lenders to obtain a loan modification from is Wells Fargo.  Fortunately, loans that were formerly Wachovia loans are a little easier to negotiate than loans that were originated at Wells Fargo.  Wachovia loans are handled differently within Wells Fargo and, to be honest, the Wells Fargo employees that handle Wachovia loans seem to be better trained and more efficient than their counterparts.  The homeowner and his wife had a more difficult situation for Wells Fargo underwriters to analyze.  The husband was self-employed and his wife was a nurse.  As a nurse the wife worked at 2 different hospitals.  The issue with the wife’s income arose from the way she was paid.  She had so many different “shift differentials” and other types of pay on her paystub that Wells Fargo had a difficult time determining what her income was.  During the process Wells Fargo requested no less than 8 letters of explanation (“LOEs”) regarding the homeowners’ income.  Michael Gaddis and his staff made sure that Wells Fargo received each and everyone of the LOEs that Wells Fargo requested.  After a few months of underwriting, Wells Fargo finally issued a HAMP trial loan modification.

The homeowners completed their trial and on May 6, 2013 the homeowners received a final HAMP Wells Fargo Loan Modification.  The homeowners were ecstatic to say the least.  As part of the loan modification Wells Fargo permanently forgave $155,156.59 of the principal balance leaving a new unpaid principal balance of $370,000.  The terms of the Wells Fargo Loan Modification call for an initial interest rate of 2% for the first 5 years followed by 3% in year 6 and fixing at 3.375% for the remainder of the term.  The new principal, interest, taxes and insurance (“PITI”) payment of $1,616.66 represents an over $1,700 per 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 1)  the final Wells Fargo Loan Modification paperwork is received by Wells Fargo; 2) Wells Fargo properly uploads the modified terms into their system; and 3) Wells Fargo returns the homeowner’s file to regular servicing.  If you would like to see a copy of the Wells Fargo 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/.

Difficult Chase Loan Modification Obtained for Homeowner in Woodland Hills, CA

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The Law Offices of Michael Gaddis was able to obtain a final CHAMP Chase Loan Modification from Chase for a homeowner located in Woodland Hills, CA.  This particular Chase Loan Modification was extremely difficult and took Michael Gaddis nearly 18 months to obtain a trial CHAMP loan modification.  The homeowners were self-employed with numerous business entities.  Their tax returns looked like phone books and Chase went through those tax returns line by line by line.  The underwriting process on this file was, perhaps, the most difficult underwriting review that Michael Gaddis and his staff have been a part of.  However, in the end persistence and patience paid off with a very good loan modification. The homeowners grew impatient a few times during the process but Michael Gaddis calm them down and told them that loan modifications are not easy, especially their situation, and that they needed to trust him and have patience.  They did and they are very happy with the results.

The final loan modification calls for a deferred principal balance of $186,011.43 which is eligible for principal forgiveness.  Provided that the homeowner remain current on their payments Chase will forgive the deferred principal balance in equal installments on each of the first 3 anniversaries of the loan modification.  At the end of the third year the entire $186,011.43 will have been forgiven.  The Chase loan modification calls for a 3.875% interest rate for the remaining term of the loan.  The principal, interest, taxes and insurance (“PITI”) payment of  $3,845 per month is $1,459.00 per month less than what the homeowner was paying prior to becoming delinquent.

As always, Michael Gaddis and his staff will continue to monitor the final Chase Loan Modification in order to ensure that Chase 1) receives the final Chase Loan Modification documents; 2) properly uploads the new modified terms into their system; and 3) returns the borrower’s file to regular servicing.  This Chase Loan Modification is a testament to the knowledge, tenacity and persistence of Michael Gaddis and his staff.

To view a copy of this Chase Loan Modification as well as other loan modifications obtained by Michael Gaddis please click the following links: http://californialoanmodificationattorney.com/approved-loan-modifications-and-trials/ 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 Loan Modification DOJ with Principal Reduction Obtained for Homeowner Located in San Marcos, CA

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The Law Offices of Michael Gaddis recently obtained a Bank of America Department of Justice (“DOJ”) trial loan modification for a homeowner  located in San Marcos, CA.  Bank of America Department of Justice loan modifications can be  life-changing due to the fact that these modifications have the ability to forgive substantial amounts of principal as part of the mortgage restructuring process.  However, Bank of America Department of Justice loan modifications also have limitations.  While Bank of America Department of Justice loan modifications have the ability to reduce principal balance to the fair market value and potentially lower the interest rate to a floor rate of 2%, this modification program does not allow for maturity date or amortization extension.  Additionally, the housing-to-income (HTI) ratio of the Bank of America Department of Justice loan modification program is very broad allowing Bank of America to find a target PITI payment within a wide range of a person’s gross income.  The result sometimes is a big principal reduction but a PITI payment higher than what the homeowner anticipated.

In this case, the homeowner’s trial plan states that the homeowner will receive a $223,749.76 principal reduction contingent upon the successful completion of the trial period.  The trial payment of $3,116.44 represents an over $400 a month reduction from what the homeowner was paying prior to becoming delinquent. Although the principal reduction was huge, since the Bank of America Department of Justice loan modification program does not allow for an amortization extension the resulting payment was higher than the homeowner expected.  Nonetheless, the homeowner and her husband were ecstatic to receive such a large principal reduction that allowed their home to become an asset again.

As always, Michael Gaddis and his staff will continue to monitor the homeowner’s trial period in order to ensure that a final Bank of America Department of Justice loan modification is obtained.  To view the Bank of America Department of Justice loan modification document referred to 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/

Final HAMP Chase Loan Modification With Principal Reduction Obtained for Homeowners Located in Vista, CA

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The Law Offices of Michael Gaddis successfully obtained a final Chase loan modification for homeowners located in Vista, CA.  The Chase loan modification is a Home Affordable Modification (“HAMP”) and has a principal reduction of $56,957.28 included in the final terms.  The Chase loan modification is a step-rate modification with an interest rate of 2% for five (5) years, followed by 3% in year six (6) and then fixed in year seven (7) at 3.375% for the remainder of the term.  The new modified payment of $2,037.12 represents an over $900 per month payment reduction from what the homeowner was paying prior to becoming delinquent.   As mentioned, $56,957.28 is eligible for the deferred principal reduction program.  Provided that the homeonwers remain in good standing on their loan on each of the first three anniversaries of the loan modification Chase will forgive the $56,957.28 in 1/3 increments.  After three years the entire amount will have been foregiven.

The homeowners were referred to Michael Gaddis by one of Michael Gaddis’ former clients.  The homeowners attended one of Michael Gaddis’ seminars and met with Michael for a free consultation on two different occassions.  At first they were very reluctant and insisted that they try and modify their loan on their own.  After seven (7) months of stress, worry and frustration they decided to retain Michael Gaddis.  Upon receipt of the Chase loan modification the homeowners thanked Michael Gaddis for helping them.  Michael Gaddis responded by telling them that they would have received this Chase loan modification seven (7) months ago if they had not wasted their time and retained Michael Gaddis after they first met with him.  The homeowner agreed and stated that they wish they had done just that.

As always Michael Gaddis and his staff will continue to monitor the homeowners’ file in order to ensure that Chase receives the signed final Chase loan modification documents; that Chase properly uploads the final modification terms into their system; and that Chase returns the homeowners’ account to regular servicing.

To view a copy of this loan modification as well as other loan modifications secured 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 Chase Loan Modification Obtained for Homeowner Located in Rancho Santa Fe, CA

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The Law Offices of Michael Gaddis recently obtained a final Chase loan modification for a homeowner located in Rancho Santa Fe, CA.  Since the loan amount of $1,495,227.48 exceeded the HAMP threshold of $729,000 the only Chase loan modification program available for the homeowner to be reviewed under was CHAMP, Chase’s internal loan modification program.  When the homeowner first consulted with Micahel Gaddis the homeowner told him that she and her husband were nearly $200,000 behind in their payments.  The homeowner also said that Chase had begun to pay their property tax payments.  The homeowner explained that her business had experienced some difficulty which caused her to get behind on her payments but that her business was now operating at a profit again and if she could just get caught up on her payments she would never be late again.  Like most others, she had tried and tried to obtain a Chase loan modification on her own and through the assistance of other companies but had been denied repeatedly.  Michael Gaddis was her last hope.  If Michael Gaddis was unable to help her the homeowner’s only hope would be to reinstate her loan which would require her to find a way to come up with a sizeable chunk of money.  The homeowner’s case was difficult becuase she was self-employed and due to the size of her unpaid principal balance.  Additionally, there was a potential issue with her loan-to-value (“LTV”).  After performing a couple of comps in her area Michael Gaddis was a little worried that the vlaue of her house might exceed what she owed on her loan.  In the loan modification world the higher the LTV the better.  In this case the homeowner’s LTV might be as low as 95% or as high as 110%.  It was hard to determine what Chase was going to use as a value due to the fact that the homeowner lived in an area of custom homes which can be difficult to value.

In the end the homeowner was approved for a 3 month trial which she successfully completed and was issued a final Chase loan modification.  The terms of the Chase loan modification call for a fixed 3.5% interest rate through the maturity date.  Additionally, the Chase loan modification deferred $121,239.72 of the principal balance which is eligible for principal forgiveness in one-third increments on each of the first three anniversaries of the loan modification provided the homeowner is current on her payments.

As always, Michael Gaddis and his staff will continue to monitor the homeowner’s file in order to ensure that Chase receives the signed Chase loan modification documents; Chase properly uploads the modified terms into their system; and that Chase returns the homeowner’s account to regular servicing.

 

DOJ Bank of America Loan Modification Obtained for Homeowner Located in Antioch, CA Proposed Principal Reduction of $97,302.42

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The Law Offices of Michael Gaddis recently obtained a Bank of America Loan Modification for a homeowner located in Antioch, CA.  The Bank of America loan modification was a Department of Justice (“DOJ”) trial loan modification with a proposed principal reduction.  The homeowner located Michael Gaddis via Michael Gaddis’ website www.californialoanmodificationattorney.com and after viewing the numerous trials and modifications that Michael Gaddis has obtained for his clients ( http://californialoanmodificationattorney.com/trials-modifications/ & http://californialoanmodificationattorney.com/trials-modifications/approved-trials-modifications-pg-2/) he decided to take advantage of the free consultation that Michael Gaddis offers to distressed homeowners.  Prior to speaking to Michael Gaddis the homeowner had been working directly with Bank of America’s local community outreach personnel.  After taking advice from the Bank of America representative assigned to him he was denied three times and was facing just fourteen (14) days away.  The Bank of America representative was continued to recommend how to set up his loan modification package.  The homeowner had lost faith in his representative and wanted a second opinion.  After speaking to the homeowner and learning what the Bank of America representative was telling him to do Michael Gaddis knew immediately that the homeowner’s loan modification application was going to be denied again.  Michael Gaddis told the client that listening to the Bank of America’s suggestions were not in his best interest; that the Bank of America representative was shooting in the dark and hoping that his suggestions would stick but that his suggestions were way off the mark.  Michael Gaddis explained that he knew it was hard to understand but that many of the Bank of America customer relationship managers (CRMs) did not understand the math behind the Department of Justice (“DOJ”) loan modification program.  Although the CRMs worked for the bank they were not overly familiary with the DOJ program procedures.  The homeowner was extremely concerned because he did not want to lose his house and with the Trustee Sale fast approaching he did not know what to do.  The homeowner had a complex situation due to multiple sources of income arising from both the borrower and non-borrower contributions.  Michael Gaddis reviewed his financial situation thoroughly and told the homeowner that he felt confident that he would be able to help him obtain a DOJ loan modification.  However, the homeowner needed to act quickly.  Despite being warned by the bank and everyone else about working with an attorney on loan modifications he decided to take a risk and retain Michael Gaddis.  With the sale date so close Michael Gaddis and his staff had to move quickly.  The file was assembled and uploaded to Bank of America in plenty of time to stop the sale.  The homeowner was concerned about the sale and confessed to Michael Gaddis after the file was submitted that he had also contacted Senator Barbara Boxer’s office about the sale date.  He asked Michael Gaddis if it would be a problem if he had the Senator’s office work on the sale date as well.  Michael Gaddis told him that it was unnecessary but that if it made him feel better to go ahead and have them continue to work on the sale date as it would not affect the loan modification application that Michael Gaddis was working on.

Bank of America postponed the sale and shortly thereafter, issued the DOJ trial loan modification.   The trial payment of $1,972.33 represents a nearly $400 per month reduction from what the homeowner was paying prior to teh Bank of America loan modification.  The principal reduction of $97,302.42 is contingent upon successful completion of the trial period which commences on February 1, 2013.

As always, Michael Gaddis and his staff will continue to monitor the trial period in order to ensure that a final DOJ Bank of America loan modification is obtained for the homeowner.

Bank of America Department of Justice (“DOJ”) Loan Modification Obtained for Rental Property Located in Huntington Beach, CA Proposed Principal Reduction of $152,777.46

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The Law Offices of Michael Gaddis successfully obtained a DOJ trial loan modification from Bank of America for a rental property located in Huntington Beach, CA.  The owner of the home had been attempting to modify the loan directly with Bank of America since 2009, failing NPV several times, prior to retaining Michael Gaddis.  He found Michael Gaddis after researching the web and coming across Michael Gaddis’ website.  Intrigued by the numerous Michael Gaddis success stories, especially with the DOJ program, the owner of the home contacted Michael Gaddis for a free consultation.  After going through the client’s situation Michael Gaddis realized that the client had a very good chance at obtaining a DOJ loan Modification.  Michael Gaddis realized that there were errors in the NPV that needed to be addressed and that by correcting these errors and resubmitting the file the homeowner’s loan modification application should get approved.  Additionally, the homeowner had an impending Trustee Sale scheduled for 9 days from the date that he retained the services of Michael Gaddis.  Michael Gaddis had to repackage the loan modification application and submit it very quickly in order to stop the sale and give Bank of America another opportunity to review the file.

The DOJ trial loan modification proposes a principal reduction of $152,777.46 contingent upon the successful completion of the trial period.  The trial plan begins with a trial payment of $2,960.00 on January 1, 2013 and represents an over $900 per month reduction from what the owner of the home was paying prior to going into default.  As always, Michael Gaddis and his staff will continue to monitor the trial period in order to ensure that a final DOJ loan modification is obtained.

Bank of America DOJ Loan Modification obtained for Homeowner Located in San Diego, CA Proposed Principal Reduction of $214,313.59

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Bank of America Loan Modification Success

The Law Offices of Michael Gaddis recently obtained a Bank of America DOJ trial loan modification for a homeowner located in San Diego, CA.  Prior to retaining Michael Gaddis the homeowner had attempted to modify his loan several times.  In fact, he had given up and had decided to short sell his house.  When the homeowner contacted Michael Gaddis he was 4 days away from closing escrow on his short sale and 2 weeks away from a Trustee Sale.  After consulting with Michael Gaddis the homeowner decided to pull out of the short sale and take his chances with a loan modification.  The homeowner had a very complex financial situation composed of various sources of income.  As a pastor, his personal income derived from a modest salary as well as a housing allowance.  In addition to this the homeowner had other sources of income.  From experience Michael Gaddis has learned to identify homeowners that, despite their failures to modify on their own or via another attorney or 3rd party, should be modifiable.  Much of the time it is a matter of presenting the homeowner’s financial situation in such a way that the underwriter understands it.  Underwriters speak their own language and unless a homeowner, 3rd party or attorney is well versed on that language  they will fail where Michael Gaddis will succeed.  Speaking the same language as underwriters is Michael Gaddis’ speciality.  This homeowner was literally days away from giving up on retaining their house and closing escrow on a short sale.  While Michael Gaddis advised the homeowner that stopping a real estate transaction so close to close of escrow could potentially leave them exposed to legal action from the Buyer and real estate agents, the homeowners decided to take the risk.  Michael Gaddis does not recommend that any homeowner back out of real estate transaction that is in escrow without first seeking legal counsel and becoming aware of the risks associated with such.  What Michael Gaddis does recommend is that homeowners seek competent advice regarding their home retention options prior to even entering into a short sale agreement.

The DOJ trial loan modification for this homeowner proposes a principal reduction of $214,313.59 contingent upon the successful completion of the trial period.  The trial payment of $2,175 represents an over $750 decrease per month from what the homeowner’s monthly payment was prior to going into default.

As always, Michael Gaddis and his staff will continue to monitor the homeowner’s situation in order to ensure that a final DOJ loan modification is procured for the homeowner.