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.
Aside from the infamous "subprime mortgages," one of the major contributors to the foreclosure crisis was banks giving out home loans at unfair terms. Many homeowners simply couldn't afford their homes once the economy slowed. One homeowner had experienced problems with getting on top of his loan for years; his entire situation changed when he spoke with us.
This homeowner hadn't paid on his mortgage since around the start of the mortgage crisis. In fact, he hadn't paid his mortgage for six years. In addition to being over $150,000 behind on paying his $2,000 monthly mortgage payment, our homeowner was paying an astronomically high 9.34% interest rate. Somehow, he had managed to stay out of foreclosure during that time, but he knew that wouldn't always be the case. That's when the homeowner retained (hired) us to help him modify his home loan in June 2013.
By mid-August 2013, we were able to obtain a loan modification from his mortgage servicer, Select Portfolio Servicing (also known as SPS). The homeowner's mortgage payment was now lowered to $1,241.62 per month, a savings of $831.06 monthly! In addition to that, the homeowner's interest rate was reduced to 2% (for the first 5 years of the loan), and the borrower is eligible to receive a principal reduction of over $415,000 if he paid his mortgage payment on time. This is especially notable because it took less than 3 months. Homeowners have been known to work for years (without a law firm) on getting a loan modification, and usually don't get positive results, if any result at all, from the process.
SPS Loan Modification Overview | |||
|---|---|---|---|
| August 2013 | Before | After | |
| Monthly Payment | $2,072.68 | $1,241.62 | |
| Interest Rate | 9.34% |
2.0% for first 5 years Increments at 1% to a cap for life of loan |
|
| Foreclosure | No, but 6 years past due | Threat of Foreclosure Averted | |
| Benefits to Homeowner | ✓ Eligible for $415,450.34 principal reduction ✓ Monthly payment reduced by 40%, saving $831.06 per month |
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This is an example of why it's so important to hire a foreclosure defense attorney to get the best loan modification possible. Amerihope Alliance Legal Services concentrates on providing homeowners with the legal counsel to help them avoid foreclosure or have the best chance at a bright future. We've helped over 5,000 homeowners save their homes since 2008, and we are looking forward to assisting even more people in the future.
