Bank of America turned down our Satellite Beach client for
loan modification at least thee times between 2010 and 2014. The client was turned down when he first
applied for loan modification before a foreclosure action was filed against
him. We obtained dismissal of the first
foreclosure lawsuit filed against the client by Bank of America and collected a
substantial amount of attorney’s fees from Bank of America following the
dismissal of the first case. From the
attorney fee recovery we were able to refund to the client a substantial
portion of the attorney’s fees he previously paid our firm.
In 2012 Bank of America (BofA) filed a second foreclosure
case against our client and he once again retained our firm to defend the
case. We helped the client submit a
second loan modification package and again the request for modification was
denied. In 2014 we received a letter from
Bank of America indicating that our client might be eligible for loan
modification of the mortgage on his family’s Space Coast home. Once again the client gathered and I reviewed
and personally submitted a complete loss mitigation packing include a Uniform
Borrower Assistance Form (Form 710), pay-stubs, bank statements, profit and loss
statements for the client’s self-employment income, tax returns, utility bills
and other documents requested by Bank of America. The client was once again turned down. The client had now been turned down for just
about every reason imaginable including an incomplete package (from before he
retained counsel), to little income, to much income and to many missed
payments.
The client’s second case was eventually set for trial. I prepared his case for trial hoping to beat
Bank of America a second time but the on the date of trial there were over 40
cases before the client’s on the docket and the case did not get reached. In June of 2014, I won a trial against Bank
of America for another Brevard County foreclosure client. In that case the Court found that Bank of
America’s notice of default did not comply with paragraph 22 of the mortgage.
In August of 2014, I took the deposition of Bank of
America’s corporate representative at our Satellite Beach office. After the deposition I showed the corporate
representative the final judgment from the case we won against BofA in June and
showed the representative that in both this case and the case we won in June
BofA used nearly identical language on the notice of default.
I explained to the corporate representative and BofA’s
attorney that what our client wanted was not to obtain a second dismissal only
to be sued by Bank of America a third time.
What our client wanted was a great loan modification that would allow
them to keep the only home their children has ever known.
Since the loan was serviced by Bank of America but owned by
Freddie Mac, U.S. Treasury rules that prohibit Freddic Mac from reducing
principal limited the range of options available for loan modification.
I explained to Bank of America that what our client wanted
was a Streamlined HAMP. I requested that
Bank of America put the underwater portion of the client’s loan in a
non-interest bearing balloon so that our client would only have to pay interest
on the actual value of the home.
Without the submission of any additional documents, Bank of
America agreed to modify the loan.
Apparently they did so using the very same paystubs and bank statements
from the previously rejected loss mitigation package.
On August 30, 2014, Bank of America gave us what we asked
for. The client was offered and accepted
a loan modification offer that put $176,000 of the client’s loan balance into a
non-interest bearing balloon. The client
would now pay interest on the remaining $195,413 of his loan balance. This brought the client’s payment for
principal and interest down to $816.72 and with escrows of $746.54 the client’s
total monthly payment will be $1,563.26.
The client’s new mortgage payment is at or below the cost to rent a
similar home. Most importantly the new payment is a one that our client can
afford for the long term and will keep the family in their home.
To review the redacted loan modification package click here.
About Shuster & Saben, LLC: At Shuster & Saben, our files and clients
get individualized attention. Bank
lawyers know that our firm is ready, willing and able to take foreclosure cases
to trial. Most Florida foreclosure firms
that represent banks have lost a few cases to our firm. If our client’s objective is loan
modification or deed in lieu of foreclosure we let opposing counsel know this
early and often and stay focused on our clients achieving our objectives.
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