Foreclosure and Loan Modification Blog

Loan Modification Success: FHA - Selene Payment Reduction

[fa icon="clock-o"] Saturday, October 5, 2013 [fa icon="user"] Jake Sterling [fa icon="folder-open'] bank of america loan modification, successful loan modifications

Disclaimer: These results should not be taken as a guarantee, as each case is unique. We have helped over 5,000 homeowners, here is one of their stories.

Monthly Payment Reduction

One recurring trend today is that many people who received loan modifications in the early stages of the Great Recession are attempting to get new loan modifications now. Oftentimes, these people received loan modifications before they experienced their worst hardship, and had no safety net when their hardship hit.

This happened to a homeowner who was faced with a dire situation. He was one of the first people to receive a loan modification from the HAMP program. Shortly after receiving his modification, harder times hit. The homeowner lost his job, and the family was only depending on his wife's salary for support. By the time the homeowner connected with us, he was several months past due on his $1,730 FHA mortgage payment, and had just been served foreclosure.

FHA logoWorking with Selene

We began working on a legal defense for the homeowner, and also worked to get all his ducks in a row for a loan modification. We attempted to request a conciliation conference from his mortgage servicer, Flagstar, but were not successful because Flagstar was transferring the homeowner's account to Selene servicing. Our home retention department successfully obtained a trial loan modification for the homeowner (where a homeowner pays trial payments before being accepted for a full loan modification), but that wasn't the end; our lawyers had to delay a foreclosure sale date in court until after the full loan modification was granted.

In September 2013, the homeowner received a full loan modification from Selene. Under the new terms, his payment would drop to $1,070, a $660 drop. His interest rate was also dropped from 6.75% to a more manageable 5.50%. After this modification was cemented, our lawyers had the foreclosure dismissed in court, so that the home was no longer in foreclosure.

FHA/Selene Loan Modification Overview

September 2013BeforeAfter
Monthly Payment $1730.46 $1069.96
Interest Rate 6.75% 5.50%
Foreclosure 30 months past due, sale date set Foreclosure case dismissed.
Benefits to Homeowner ✓ Threat of foreclosure averted, modification completed in only 3 months
✓ Monthly payment reduced by 38%, saving over $660.00 per month

Our goal at Amerihope Alliance Legal Services is to provide legal counsel to help homeowners avoid foreclosure and have a more secure financial future. Since 2008, we have helped over 5,000 homeowners save their homes, and we look forward to saving even more homes in the future. 

Download our Hardship Letter Guide

Jake Sterling

Written by Jake Sterling

Jake Sterling is Amerihope Alliance Legal Services' Homeowner Liaison. He helps to bring awareness and teach homeowners about foreclosure defense and options to save their homes.

About this Blog

Amerihope Alliance Legal Services is a leading loan modification and foreclosure defense law firm with attorneys licensed in 5 states. We have helped over 7,000 homeowners fight back and keep their homes.

Click to Read Our Super Loan Mod Success Stories

Our goal is to provide valuable information to help homeowners who are trying to obtain a loan modification or to stop foreclosure. You may schedule a free consultation at any time.

Subscribe to Email Updates

Lists by Topic

see all
Quick Foreclosure Quiz

Foreclosure Process Handbook