The story begins with a 50-year-old single woman in Middlesex County Massachusetts she bought a piece of property in 2003 and was able to make all her mortgage payments on time with no difficulties. Suddenly she loses her job and her elderly parents become extremely sick and needed extensive daily medical assistance. Now her mortgage payment was not as easy to make because she wasn't working as much. This went on for several years. She was behind for a substantial amount of time 63 months (OVER FIVE YEARS) to be exact.
This person wanted to pay her mortgage on time and did not want to lose her home. She eventually did find employment and her parents health improved tremendously. At that point, she attempted to discuss and negotiate a mortgage modification with her mortgage company. She worked with her lender for approximately 12 months, with no success. She was repeatedly told to provide documents that the bank already had. She was told to fax in duplicate documents throughout the entire 12 months. She was told on numerous occasions that her loan modification was in review and would likely be complete within 30 days. However, this was all a lie. The bank then scheduled a foreclosure sale date and the client came into my office looking for assistance. After careful review of the client's financials, it was my opinion that the best course of action was to immediately file a Chapter 13 bankruptcy to stop any further foreclosure activity and to request a mortgage modification with their servicer. After a substantial amount of negotiations with the mortgage company our office was able to procure a mortgage modification that the client could currently easily afford. Here are the details of the transaction.
Time we meet with client:
Unpaid principal balance of $396,000 interest rate of 6.99%, monthly mortgage payment of $3814 including taxes and insurance, total arrearage $244,249.10
After modification new mortgage payment $2200.04 per month. This payment includes her taxes and insurance. New interest rate 2.0% for 40 years.
The law offices of Matthew Desrochers, P.C. is a Boston, Massachusetts debt relief law firm law firm. If you have been denied a loan modification from your mortgage company, contact us to see if we may be able to help.