Foreclosure and Loan Modification Blog

Loan Modification Success: Nationstar Principal and Payment Reduction

[fa icon="clock-o"] Saturday, August 24, 2013 [fa icon="user"] Jake Sterling [fa icon="folder-open'] successful loan modifications, foreclosure defense

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.279000-saved

What would you do if you were emerging from the shadows of bankruptcy, had already lost one of your cars to repossession, and your house was now in danger of being foreclosed? If you're like this couple, then you fight back.

Emerging From The Shadows

We met this married couple when they retained (hired) us in late 2011. They couldn't afford to pay their $2,600 mortgage payment and were several months behind. They had been through a lot of hardship but were intent on keeping their house, even with the threat of foreclosure looming on the horizon.

Immediately after the couple retained us, we requested for a conciliation conference with their mortgage servicer, Nationstar. A conciliation conference would give our attorneys a chance to work out a deal face-to-face with Nationstar's attorneys, but without the added pressure of a court trial. This is especially advantageous because it allows our lawyers to ensure that the bank evaluates the client's case individually, instead of as just a number in a computer.

The conciliation conference was set for February 2012. At the conciliation conference, Nationstar asked the couple to provide extra information about their financial situation, and also asked for additional time to evaluate the client's case. In the meantime, Nationstar continued with foreclosure proceedings and even set a sale date in August 2012, which our lawyers successfully blocked. 

Fighting For A Mod

nationstar-logoNationstar did evaluate the client's case, and in the space of several months, denied the client for two separate HAMP loan modifications. The third time was the charm, though, and the couple was granted a trial loan modification in May 2013. They were granted a final loan modification in August 2013, which allowed them to pay about $1,800 monthly, which was over $750 savings. Their 34 month past due balance was forgiven, and they received a total principal reduction of nearly $279,500. Perhaps most importantly, our attorneys stopped the foreclosure proceedings completely, so the couple could finally rest easy at night.

Nationstar Loan Modification Overview

August 2013BeforeAfter
Monthly Payment $2,616.93 $1,839.83
Interest Rate 3.375% variable Years 1-5: 2%
Year 6: 3%
Year 7: 4%
Year 8-40: 4.25%
Foreclosure 34 Months Behind, Sale Date Set Foreclosure Stopped and Case Dismissed
Benefits to Homeowner ✓ $279,491 Principal Reduction 
✓ Monthly payment reduced by 29%, saving $771.10 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 a Sample Financial Worksheet The Secret to a Successful Loan Modification
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