Friday, September 19, 2014

Largest Principal Reduction In Firm History!

Old Loan Balance:       $1,310,000
New Loan Balance:     $   755,000

Firm attorney Richard Shuster has obtained the largest principal reduction in firm history and a loan modification that is likely the largest principal reduction on any Brevard County residential property.  After our client made no mortgage payments for over five years on an oceanfront property in Melbourne Beach the homeowner’s unpaid loan balance reached 1.3 million dollars.  As a result of a principal reduction loan modification agreement our client’s new loan balance has been reduced to $755,000.00.  Our client’s loan balance was reduced by over $555,000.00.  The client’s interest rate was reduced from nearly 8% to 4.1%.

Shuster & Saben, LLC defended the homeowner in this matter since 2010.  One week before a scheduled trial in the client’s foreclosure case, the loan servicer, Ocwen advised it wanted a complete financial package from our clients.  The client’s business suffered greatly during the 2008-2011 recession bus has since had a substantial recovery.  The clients did not want to provide the loan servicer with complete financials as they were worried that they might make to much to qualify. 

Fortunately, the firm had fully prepared the case for trial and was ready, willing and able to take the case to trial.   One month earlier, attorney Richard Shuster, defeated the same Plaintiff  (Deutsche Bank), the same servicer (Ocwen), and same law firm (Clarfied Okon) in a nearly identical case.  During negotiations, the loan servicer and their counsel were reminded that if the case went to trial they would probably lose this case in the same fashion that our firm defeated them the month before. 

Three days before the trial, the bank’s lawyers asked for a continuance to allow more time to evaluate our client for loan modification.  Shuster’s response was rather blunt: “Give our client a loan modification that they love or we are going to trial.”  On the day before trial bank counsel advised by E-mail that our client, without submission of any financial documentation had been approved for a principal reduction loan modification. 

A great personal injury lawyer once said that if you prepare a case for trial, you may end up with a great settlement when the insurance company knows that you are ready, willing, and able to take the case to trial.  The settlement offers are even bigger when the insurance company or its lawyers are scared to go to trial against a prepared, experienced, trial advocate.  We have found this same principle usually applies in foreclosure cases.  To see the final loan modification agreement click here.

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