Thursday, October 21, 2010

Shuster & Saben, LLC settles Wells Fargo Foreclosure Case with 3.125% Loan Modification

Before hiring Shuster & Saben to defend a foreclosure law suit filed against their Brevard County home our Rockeledge, Florida client all but begged Wells Fargo to modify their mortgage. The client completed a HAMP RMA (request for modification) sent Wells Fargo their bank statements and pay stubs and did everything asked of them by Wells Fargo. Ultimately Wells Fargo refused to permanently modify the client's mortgage despite the fact that the client's income qualified under HAMP guidelines. The client ultimately stopped paying their mortgage and continued to submit additional applications for loan modification. While their third application was pending the client received a notice of acceleration and ultimately a foreclosure action was filed against them. After receiving a free, no obligation consultation at the firm’s Melbourne foreclosure defense office, the client hired Shuster & Saben to defend the foreclosure action. After being hired the firm sprung into action by filing a motion to dismiss the lawsuit based on the Wells Fargo’s failure to verify the complaint and began an investigation of whether Wells Fargo violated HAMP serving guidelines by failing to modify the loan and by filing suit while a HAMP application was pending. At the first Court skirmish with Wells Fargo’s counsel, firm partner Richard Shuster, won a motion to dismiss and obtained a court order dismissing the foreclosure complaint (with leave for Wells Fargo to file an amended complaint within 20 days). ( Click here to read the Court Order ) Thereafter, Wells Fargo filed an amended complaint that was verified as required the recent amendments to Florida Rule of Civil Procedure Rule 1.110(b) which requires foreclosure complaints to be verified.

Shortly thereafter, Wells Fargo, extended a settlement offer wherein our client’s interest rate would be reduced form 6.875% to 3.125%. This modification would lower the client’s monthly mortgage payment from $1,910.47 (principal & interest without escrows) to $1,280.43 (principal & interest without escrows). With the modification our client will be able to keep and afford their home. During the next five years alone our client will save over $37,800 on their mortgage. Our clients case was resolved in under six months and as such their legal expense was a very small fraction of the amount they will save on their mortgage.

To review a copy of the loan modification agreement please click to the link below.

Loan Modification Agreement

About Shuster & Saben: Shuster & Saben is a law firm that understands the difference between Foreclosure Delay and Foreclosure Defense. We listen to our clients to understand their financial circumstances and tailor or defense strategies to achieve the clients goals. For clients that do not know what to do, we evaluate whether in makes financial sense to save their home and craft exit strategies for clients where loan modification is not a viable option. Where the lender bringing the lawsuit does not own the note or have legal standing to foreclosure we seeks the dismissal of the action against our client. We believe that banks are most likely to make offer generous settlements when they are met with a vigorous and through defense. Shuster & Saben is a firm of six lawyers with offices in Miami, Doral, Plantation / Fort Lauderdale, and Melbourne, Florida.

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