Disclaimer: These results should not be taken as a guarantee, as each case is unique. We have helped over 7,000 homeowners, here is one of their stories.
In February of 2015, we were hired by homeowners in Brooklyn, New York who wanted to avoid losing their home to foreclosure. To protect their privacy, we'll call them the Voshenkos.
The Voshenkos were in very serious trouble when they came to us. They were in foreclosure because they hadn't made a mortgage payment to Wells Fargo in more than five years. But they wanted to find a solution to keep their home, so we started working on their case.
Tax Problems Prevent Mortgage Fix
As is often the case for homeowners in foreclosure, the Voshenkos had other financial issues besides their mortgage. The biggest issue was that they hadn't filed their taxes in four years. That was a problem not just between them and the IRS but also for getting a loan modification because two years of tax returns are required to complete the loan modification application.
And because they wanted to keep their home, a loan modification was their only hope. The Voshenkos had applied for a loan mod before they retained us, but because the application didn't include their tax returns, it was denied.
Mandatory Settlement Conferences
New York state requires mandatory settlement conferences, which are mediations where the homeowner meets with their bank's representative to try to come to some kind of agreement that doesn't start with 'f' and end with 'oreclosure.' The Voshenkos had already been to one settlement conferences on their own before they retained our firm, and had not come to a resolution.
Once we were hired by the Voshenkos, they no longer had to worry about attending the settlement conferences because we appeared at all of them on their behalf. In total we went to eight settlement conferences for them.
Our strategy was to prevent the foreclosure from moving forward and ask for the settlement conferences to be adjourned so our client's loan modification application could be brought into compliance. We were successful with that strategy, and our clients got the extra time they needed.
The Voshenkos used that time to their advantage by working with an accountant to complete their taxes from years past. When their taxes were filed, we submitted a complete loan modification application to Wells Fargo.
Loan Modification Approved
Thanks to our hard work and an effective strategy, the Voshenkos' loan modification application was approved. The value of their home was too high ($906,000) to be eligible for a HAMP modification, but the in-house trial modification they were offered had very favorable terms.
The Voshenkos old mortgage payment was a staggering $5,400 a month. With their modification, which extended their loan term, their payment was lowered to $3,732, which is a $1,634 monthly savings. With a much more affordable payment, they have more financial flexibility and will be less likely to fall behind on their mortgage payments in the future.
Getting the Voshenkos out of foreclosure and finding a permanent resolution to their mortgage problems required a lot of work. We had to attend many settlement conferences for them, and they had to do their part as well. Our efforts and a strategy based on years of experience helping people in similar circumstances resulted in a successful outcome.