May 26

$130k Loan Modification Reduces Our Clients’ Mortgage by 52%

This week we’re featuring a successful loan modification negotiated through a conciliation conference with the homeowner’s lender, Ocwen. A Shared Appreciation Modification (SAM) can often result in an incredibly high principal reduction – in this case, $130,549.41! In return the borrower promises to share 25% of any future appreciated value in the home. Here are the details:

  • These Sunrise, Florida, homeowners were past due over $40,000 or 29 monthly mortgage payments to Ocwen, and were in foreclosure. Their payments were $2,260 PITI, and their principal balance was $250,249.41.
  • Borrowers were approved for the SAM modification, bringing them current and out of foreclosure. Their new payments are $1,242.31 PITI, for a monthly savings of $1,017.69. After three years of monthly payments, their principal will be reduced to $119,700.00, forgiving 52% of the amount owed!

SAM’s are just one of many options available to Floridian homeowners through conciliation conferences. While state-mandated mediations are restricted to a narrow range of options, conciliations offer much more possible outcomes. Because they are not as regulated, conciliations are very flexible and allow foreclosure attorneys to negotiate for exactly what will save a home, in a fraction of the time. However, the most important ingredient to getting this kind of modification is an experienced foreclosure defense law firm to fight for it!

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