Testimonials / Success Stories

Story from Florida (3/09/2009)

The homeowner was just asking for a $250.00 monthly reduction and got a total of $428.18

Previous Scenario

• Lender: HSBC, combo loan with a first and second mortgage
• 1st Mortgage: $1,149.99 P&I at 8.99% – monthly payment $1,486.20
• 2nd Mortgage: $358.03 P&I at 9.99% - monthly payment $358.03

Loan Modification Workout

• 1st Mortgage: $845.80 P&I at 5.25% – monthly payment $1,163.02
• 2nd Mortgage: $253.03 P&I at 5.75% - monthly payment $251.03

Story from Florida (3/10/2009)

Previous Scenario
Lender: SPS

• 18 months in arrears
• Previous monthly Principal and Interest: $1,900.00
• Interest rate was 12.96%

Loan Modification Workout

• new monthly payment Principal and Interest: $809.00
• interest rate reduced to: 8.8%
• $31,728 debt was forgiven

Story of Frandy from Florida (11/10/2008)

Previous Scenario

• Behind on mortgage payments for 9 months.
• Interest rate of 10.25%. (Soon to adjust higher)
• Mortgage payments of $1881 principal and interest including $229 for escrow of taxes and insurance.
• Debt to income of 55%.
• Balance of loan $186,000. (Property is upside down by $50,000)

Workout Loan Modification

• Debt to income ratio of 37.34%.
• Reduce Principal Balance to $130,000, meaning principal write down of $50,000.
• Remaining term of loan remains at 338 months.
• Interest rate of 7.5%.
• Monthly principal and interest payment: $925.76
• Monthly escrow payment: $229.66 (estimated based on current tax and insurance payments as disclosed)
• Total Monthly payment $1155.42 (using estimated escrow)
• Delinquent interest is waived. Late charges waived.

Frendy’s deal is a good example of successful loan modification. He will save over $245,000 of interest through out the life of the loan. ($1881 – $229[escrow] = $1652 – $925[new P&I] = $727 x 338[remaining months] = $245,726[interest saved])

His P&I is now lower then any apartment he would be able to rent in the area. His home is now adjusted to current property value.

Story of Lishonda from Florida (11/15/2008)

Previous Scenario

11 months behind on mortgage payments. Accumulated late fees and outstanding payment on balance. Foreclosure process started 5 months ago.

Lender: Home EQ

Workout Loan Modification

Combo Loan:

First loan: fixed rate of 6.1% reduced to: fixed rate of 4.0%
original monthly mortgage payment: $918.26 reduced to principal & interest: $825.17

Second loan: fixed rate of 11.3% reduced to: fixed rate of .5%
original monthly mortgage payment: $419.24 reduced to principal & interest: $145.59

Lender forgives accumulated 11 months of outstanding debt.

Homeowner is reinstated on the loan & foreclosure process is canceled. Estimated time to pay off loans is 336 months or 28 years. Total mortgage loan amount is $200,000.

Savings:

• First loan savings: 336 x $93 = $31,248 over life of loan.
• Second loan savings: 336 x $273 = $91,718 over life of loan.

Total Savings of $122,976 on the life of loan.

Story from California (11/22/2008)

LENDER: AHMSI – American Heritage Mortgage Services Inc.

Previous Scenario

• Seven months behind on mortgage payments
• Adjustable Rate Mortgage / 7.55%
• Loan amount left on mortgage $220,000

Workout Loan Modification

• All behind debt and fees were forgiven.
• His first payment is 1/1/2009
• Savings of $220 per month on mortgage payment
• Lowered interest rate to a fixed rate of 6%

Total interest savings over life of the loan approximately $70,000.

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