81 Months Past DUE !!! Select Portfolio Servicing (“SPS”) Loan Modification Obtained For Homeowner in Valley Springs, CA

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SPS Loan Modification Success Story

Recently I helped a homeowner living in Valley Springs, CA obtain a HAMP trial loan modification from Select Portfolio Servicing (“SPS”).  This file was one of the most difficult and frustrating cases that I have ever had.  I have been assisting homeowners obtain loan modification since the inception of the housing crisis.  I only mention this because I want you to understand that I am extremely familiar with not only loan modifications but also the evolution of loan modifications.  When this homeowner contacted me she had been attempting to modify her loan for over 6 years and was coming off of a fresh denial from SPS.  The homeowner also had a Trustee Sale scheduled to occur in 20 days.  I asked the homeowner to send all of her paperwork to me and then, as I always do, thoroughly reviewed her situation to determine whether or not I thought she should be able to qualify.  My first impression was that she should not be having problems.  Her case appeared to be a text book example for HAMP Tier 1 approval.  Yet, when I looked at the SPS denial it appeared that SPS was not even reviewing the homeowner for HAMP Tier 1.  I reanalyzed the Homeowners income documentation, verified the value of the home and ran my calculations.  I did this 3 times.  Each time I ran my calculations I became more convinced that SPS was in error.  I agreed to take the homeowners case and, although I could not guarantee a result, I told the homeowner if there was ever a case I thought should pass a HAMP Tier 1 review it was this one.  The homeowner agreed to retain me and I prepared and submitted a new loan modification application to SPS for review.  My first obstacle was that we the loan modification submission was too close to the sale date.  I had to appeal to upper management in order to get the trustee sale postponed and the homeowner’s loan modification package into review.  Once in review my work began.  Sure enough the first loan modification application I submitted was denied for similar reasons to that which the homeowner received.  I appealed and challenged SPS on why the homeowner’s file was not being reviewed for HAMP Tier 1.  I might heavy resistance so I appealed the matter up the management chain.  Months past as did the constant threat of foreclosure.  Finally, I was told by SPS that the reason that the homeowner was not being reviewed for HAMP Tier 1 was because the homeowner had a received a previous Trial Payment Plan (“TPP”) and that the homeowner had defaulted after making one payment.  I asked the homeowner if this was true and the homeowner told me that while she had received a TPP, she never made a payment because the approved TPP payment was too high.  Hearing this I went back to SPS and told them this information.  Again I met resistance.  I demanded to see an accounting of her payment history so that I could see where she made a trial payment and then defaulted.  Of course they could not show me where the homeowner had defaulted on a TPP.  Finally, they agreed that the homeowner had not missed a TPP payment, but argued that she was still not eligible for a new HAMP Tier 1 review because the HAMP Guidelines stated that if the homeowner received a previous TPP offer and did not take it the homeowner was still not eligible for a new HAMP Tier 1 review.  I could not believe what I was hearing.  I told them that I was familiar with the HAMP Tier 1 Guidelines and that was not what it said.  I told them that the HAMP Guidelines stated that a homeowner loses eligibility when a homeowner receives a TPP and then defaults after making the first payment.  Since the homeowner did not default after making the first payment the homeowner was still eligible to be reviewed for HAMP Tier 1.  The response I received from SPS made me laugh out loud.  SPS responded by telling me that the while what I was saying was true for the current HAMP Guidelines, the HAMP Guidelines in effect at the time were consistent with their position and the homeowner was still not eligible because she had received a TPP but never made a payment.  I laughed because the newest HAMP Guidelines Handbook clearly states that each new version of the HAMP Guidelines supersedes the previous version.  In this case, the new HAMP Guidelines trumped the old HAMP Guidelines thus allowing the homeowner to be reviewed for HAMP Tier 1 again.  I actually cut and pasted excerpts from the Treasury Guidelines to support my position.  SPS clearly was wrong for not reviewing the homeowner again for HAMP Tier 1 and finally, they reluctantly agreed to rerun her for HAMP Tier 1.  Subsequent to their agreeing to rerun the homeowner for HAMP Tier 1 I received another denial from SPS.  When I reviewed the denial I noticed that SPS was still not reviewing the homeowner for HAMP Tier 1.  I challenged SPS again.  SPS told me that they were having trouble removing a block in their computer and that they would need to figure out how to lift the block in order to rerun the homeowner’s file for HAMP Tier 1.  About a month later, I was finally informed that SPS was able to properly run a HAMP Tier 1 review and that the homeowner had passed and been issued a TPP.

This file was definitely one of the more challenging files because lenders always believe that they are right and that homeowners are wrong.  SPS believed that they had properly followed HAMP Guidelines and that they were 100% correct in their review of the homeowner’s file.  As you can see, they were wrong.   The TPP plan calls for a payment of $2,218.75 which represents a potential savings of nearly $700 a month from the homeowner’s currently scheduled payment. The trial payment begins December 1, 2014.

Michael Gaddis is very proud of every one of the modifications that he obtains for homeowners.  This loan modification means that yet another family will be able to keep their home.  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 SPS loan modification is obtained.  To view a copy of this trial SPS 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/

New Loan Modification Record: Loan Modified That Was 88 Months Past Due

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I have been helping people modify their loans since 2008.  During that time I have helped countless homeowners keep their homes by fighting lenders for loan modifications.  Until yesterday, the latest loan that I had ever modified was 75 months past due.  That’s right, 75 months or 6 years 3 months!  I was extremely proud of that accomplishment because as loans get more and more behind they become more difficult to modify.  I thought 75 months was a record that would never be topped.  However, yesterday I was able to obtain a trial loan modification from Select Portfolio Servicing (“SPS”) for a homeowner in Poway, CA that was 88 months past due.  That is not a typo.  The homeowner was 88 months or 7 years and 4 months past due!!!  Although I was fairly certain that the loan was modifiable I was concerned because the homeowner was behind $513,790.89.  Due to the number of months past due and the significant amount of arrearage I anticipated problems with Net Present Value (“NPV”).  However, the NPV results came back favorably and SPS issued a trial loan modification with a first trial payment due date of July 1, 2014.

Some people will say that it is unfair that this homeowner got to stay in her house for over 7 years without a payment and now gets to keep her house with a loan modification.  I can assure you that although the homeowner did not make a payment for over 7 years it was not a party.  This particular homeowner had been battling the lenders since day 1 trying to obtain a loan modification.  She had tried numerous times on her own, with other attorneys, nonprofit agencies, etc.  This homeowner tried everything in the book to save her house.  She lived in her house for 7 years not knowing what was going to happen.  Every morning she stressed that someone would knock on the door and kick her out.  She just wanted to make her house payment but IndyMac refused.  Instead of giving up and losing hope, she continued to fight.  The fight consumed her and took its toll on her relationships and her work.  Finally, she found my website and approached me to see if I thought there was any way that I could save her home.  She had read all of the stories on my website about the various obstacles that I had overcome over the years and thought I would be a great person to consult with.  This particular homeowner exhausted and needed to know if there was any realistic possibility of obtaining a loan modification.  The fight was finally wearing her down.

I reviewed her situation and identified possible areas that had been causing her problems in the past.  Although I knew that there were significant issues that could cause problems with NPV I thought she had a greater than 50% chance of success.  I told her that I would take a shot and see if I could help her.

In the end, this homeowner’s situation became another Michael Gaddis SPS loan modification success story, albeit one that I am extremely proud of. If you would like to see my “trophy case” please click on the following links and view copies of trials and modifications that I have obtained over the years.  Although they are not all on there, I think you will get the idea of what I am capable of:  http://californialoanmodificationattorney.com/trials-modifications/ and http://californialoanmodificationattorney.com/trials-modifications/approved-trials-modifications-pg-2/

SPS Loan Modification Obtained for Homeowner with Difficult Situation in Oceanside, CA

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A homeowner with Select Portfolio Servicing (“SPS”) recently obtained a trial SPS loan modification with the assistance of The Law Offices of Michael Gaddis.  Prior to the homeowner meeting with Michael Gaddis for a free consultation, the homeowner had attempted to modify the loan no less than three (3) times.  During the consultation Michael Gaddis understood why the homeowner was having such a difficult time.  The homeowner’s household income consisted of numerous contributions from various family members living in the house.  Each family member had a different type of income.  The homeowner’s file was an underwriting nightmare.  Without the assistance of Michael Gaddis or another competent loan modification professional that has a good understanding of SPS loan modification underwriting procedures the homeowner had very little chance of obtaining a loan modification.  The homeowner decided to retain Michael Gaddis who then prepared the modification package by addressing each concern that the underwriter was sure to have.  By being preemptive and addressing problem areas from the onset, Michael Gaddis was able to provide a SPS loan modification application package that was SPS underwriter friendly.  The result was the issuance of a trial Home Affordable Modification Program (“HAMP”) SPS loan modification.

The trial SPS loan modification has a designated trial payment of $1,990.87 which represents an over $1,300 per month potential reduction from what the homeowner was paying prior to becoming delinquent. The first trial payment is set for March 1, 2013 and concludes with the third payment on May 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 SPS loan modification is obtained.  To view a copy of this trial SPS 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/

Final SPS Loan Modification Obtained for Homeowners Located in Escondido, CA

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The Law Offices of Michael Gaddis recently obtained a final SPS loan modification for homeowners located in Escondido, CA.  SPS, formerly known as Select Portfolio Servicing, took over servicing of the homeowners loan halfway through the loan modification process.  The homeowners’ previous servicer, Bank of America, has been transferring the servicing of a large portion of their portfolio during the course of the last year.  While the transfer of servicing was an inconvenience, it did not deter Michael Gaddis from achieving his goal of obtaining a loan modification for these homeowners.  Michael Gaddis has a solid relationship with SPS and that relationship came in handy during this loan modification.  SPS does consider loans transferred from Bank of America for the Department of Justice loan modification program if they were eligible for the program at Bank of America.  In this case, SPS approved the homeowner for a Home Affordable Modification Program (“HAMP”) trial loan modification.  However, the SPS customer relationship manager (“CRM”) contacted the homeowners and told them that even though they were approved for a HAMP trial they could still be reviewed for a Department of Justice loan modification.  The CRM told them that all they had to do was reject the HAMP loan modification and that they could be reviewed for the Department of Justice loan modification program.  Michael Gaddis told the homeowners that the CRM was incorrect, that once you have been approved for a different program you can no longer be considered for the Department of Justice loan modification program.  The homeowners chose to heed the advice of the CRM and Michael Gaddis reluctantly agreed to assist the homeowners in their pursuit of a Department of Justice loan modification.  A few weeks later the CRM contacted Michael Gaddis and told him that he was right, that the homeowners were no longer eligible for the Department of Justice loan modification and that they would have to be reconsidered for a new HAMP loan modification.  Despite this unfortunate setback, Michael Gaddis was able to obtain a new HAMP trial loan modification.

The final SPS loan modification is a step rate loan modification with an initial interest rate of 2% set for five (5) years.  In year six, the interest rate increases to 2.75% where it remains fixed through the maturity date.  In effect, the SPS loan modification is a 2.75% fixed rate loan modification.  The initial payment of $1,725.53 represents an over $400 per month reduction from what the homeowners were paying prior to becoming delinquent.

As always Michael Gaddis and his staff will continue to monitor the homeowners’ file in order to ensure that 1) SPS receives the signed final SPS loan modification documents; 2) SPS properly uploads the new modified terms into their system; and 3) SPS returns the homeowners’ file to regular servicing.  To view a copy of this SPS 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/

 

SPS HAMP Trial Loan Modification Obtained for Homeowner Located in Escondido, CA

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The Law Offices of Michael Gaddis recently obtained a trial HAMP loan modification for a homeowner located in Escondido, CA.  The trial payment of $1730.21 represents an over $400 reduction from the homeowner’s prior monthly payment.  Prior to retaining The Law Offices of Michael Gaddis the homeowner had tried to modify his loan for over a year and a half.  Interestingly enough, after obtaining the HAMP trial modification SPS contacted Michael Gaddis and asked him if the homeowner would like to be run through the DOJ program.  Since the loan is owned by Bank of America SPS stated that the homeowner now has the option to be considered for the DOJ program but that in order to be considered the homeowner will have to forego the HAMP trial.  Michael Gaddis has advised the homeowner of the pros and cons of the DOJ and HAMP programs and is currently waiting for the homeowner to decide whether he wants the HAMP modification or whether he wants to pursue the DOJ loan modification.

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