Success Stories
Mr G. of Davisburg, MI
Original loan $139,000 - monthly payment of $1,328 with 8% rate
Hardship:
Mr. G's wife had a premature baby. She could not work due to the care of the baby. They got behind in payments and could not catch up. Primary wage earner's hours cut due to the economic times. Collectors called their home daily. Payments were 4 months behind.
Success:
Modified terms: 3.375% fixed for 40 years. Arrearages were added to the back of the loan. Given 2 additional months before new payment was due. Second mortgage modified: 3.5% fixed for 4 years with payment reduced to $74.78 from $250 per month.
Ms. R of Roseville, MI
Original loan - 11.3% (adjustable) on $130,000 total loan
Hardship:
ARM adjusted to a payment of $1,800. The home was scheduled for Sheriff's sale (foreclosure). Five months behind on payments. Ms. R. was about to lose on her home due to the adjustment in monthly payments.
Success:
We were able to get the lender to cancel the Sheriff's sale while a modification was approved. During the process, we found that she was paying non-homestead taxes, the city had marked her incorrectly. Saved her $1,348 per year ($112.33 per month).
Modified terms: 2% for 5 years. Total new payment: $914. Monthly savings: $886
Mr. N of Lake Orion, MI
Original - 5.75% (adjustable) Monthly Payment of $3,438
Hardship:
Beautiful home, newly built. Recently appraised for $350,000, mortgage balance $578,000. Self employed for 25 years in a successful business. Income down over 50% in recent years due to the economy. Mr. N was never late on his mortgage and has perfect credit. The family savings were gone. The family was afraid of losing their home.
Success:
Modified terms: 4%. Total new payment: $2,888. Monthly savings: $550
Mr. and Mrs. D of Brighton, MI
Original loan - 6.355% (adjustable) on 172,600
Hardship: Mr.D became unemployed after 15 years as an electrician. The family income decreased by 50%. Five months late on the payments and they were afraid of losing their home. First modification attempt was declined. Foreclosure proceedings had begun.
Success:
Received modification agreement. Legal proceedings ceased. The arrearage was added to the back of the loan. All unpaid late charges were waived. Modification terms: 3% for 5 years with 1% increments to rate for 2 more years, then fixed at 5.125% .
Other examples:
Mr. L. original payment - $3,358.....modified payment - $2,129
Mr. D. original payment - $1,100.....modified payment - $512
Ms. M. original payment - $3,590.....modified payment - $2,134
Mr. H. original payment - $2,515.....modified payment - $1,711
Mr. M. original payment - $1,202.....modified payment - $847
Also a number of successes with short sales and 2nd mortgage settlements
