After months of litigation and applying for a loan modification our client has received her permanent modification with a principle reduction.
This loan is part of the National Mortgage Settlement (NMS).
The program is a win if you can get through the months of follow up and trial payments. At the end, the homeowner has reduced the monthly mortgage payment by over 40%.
The interest rate for the next 5 years is 3.85%. After that time the rate will increase to 4.375% for the remaining 23 years. The note time was not extended. The loan will be paid off at the original time and has not been extended.
Most importantly the borrower received a 190k principle reduction off of the total amount owed including all past due payments and interest charges. It is better to start the research and loan modification as quickly as possible as every payment that is missed is added to the back of the loan with late fees and additional charges. However, Its never too late to try to save your home and get a loan modification. I do not have it in me to give up when it comes to trying to save someone’s home.
I highly recommend the borrower request a QWR, Qualified Written Request for all payment and mortgage history. Many times there has been errors in payments made around the time of default and prior loan modification agreements. It is very important to verify your payment made on the account before accepting any loan modification as you are accepting all charges from the servicer.
Many of the NMS files are those of the securitized trust with missing endorsements and assignments on the chain of title. This loan was transferred and sold since the origination.
The borrower was proactive in requesting a loan modification and requested a settlement with her servicer. The attorneys representing the borrower made sure that the Plaintiffs counsel was aware that the loan modification was being processed. Unfortunately many homeowners attempting to do loan modifications on their own are not successful and many lose their homes through the foreclosure process.
If you are part of a foreclosure case and have experience with settling loan modifications that are part of the National Mortgage Settlement please provide any advice or assistance that we can use to help others!
My goal is to help others receive a successful loan modification and save their home!
Borrower gets Principle Reduction 