Review the success loan modification cases to understand the potential financial savings available to you.
Case 1 - Carrington Mortgage
This client was upside down on their house by 30,000. They attempted
to refinance with the original broker, however with no equity in their
home, the banks will not take that risk. With a 10.10% Adjustable
rate mortgage the client has to do something or else the mortgage
payment is completely unaffordable, leading them to foreclosure.
Original Loan Info |
Modified Loan Results |
||
| Loan Type | Adjustable Rate | New Loan Type | Fixed Rate |
| Original Rate(Teaser) | 6.50% | Amortization | 30 Years |
| Current Rate | 10.10% | New Rate | 6.75% |
| Principal balance | $750,000 | New Principal Balance | $781,513 |
| Monthly Payment | $8754.32 | New Monthly Payment | $5,183 |
| Amount in Arrears | $52,303 | Principal Forgiveness | $3200 |
| Home Value | $750,000 | Total Monthly Savings | $1330 |
Case 2 - American Home Mortgage
This client temporarily lost her job which dramatically reduced the income out of the household.
Upon receiving a new job, the bank put her in a STEP Adjustible which started at 5.75% and went up as the years went on to a fixed rate(see below).
The temporary decrease in rate made a huge difference in the monthly payment.
Original Loan Info |
Modified Loan Results |
||
| Loan Type | Fixed Rate | New Loan Type | ARM STEP/FIXED |
| Original Rate(Teaser) | 8.99% | Amortization | 335 Months |
| Current Rate | 8.99% | New Rate | 5.75%,6.75%,7.75%,8.99% |
| Principal balance | $340,501 | New Principal Balance | $352,774 |
| Monthly Payment | $3,182 | New Monthly Payment | $2,117 |
| Amount in Arrears | $12,273 | Action Taken | Put back in loan |
| Home Value | $385,000 | Total Monthly Savings | $1,065 |
Case 3 - Washington Mutual
This client lost his job as an assistant bank manager. The client submitted our Loan Modification Package, to the bank and received a modification in less then 30 days. He was able to reduce his interest rate and put all his escrows into the loan.
This saved him $500 a month. This is exactly what the client needed to stay afloat and keep his home.
Original Loan Info |
Modified Loan Results |
||
| Loan Type | Fixed Rate | New Loan Type | Fixed Rate |
| Original Rate(Teaser) | NA | Amortization | 38 Years |
| Current Rate | 8.22% | New Rate | 8.125%% |
| Principal balance | $198,461 | New Principal Balance | $200,898 |
| Monthly Payment | $1,423 | New Monthly Payment | $1,137 |
| Amount in Arrears | $2,437 | Action Taken | Put back in loan |
| Home Value | $215,000 | Total Monthly Savings | $285 |
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