The loan workout attorneys at De Novo Law Firm recently obtained a loan modification with Chase bank on a multi-unit investment property. Our client purchased the investment property with her husband a few years ago. After her husband passed away, she had trouble maintaining the property and keeping up with payments. Through the modification process, De Novo Law Firm was able to stop the foreclosure on the property and make payments affordable again. For more details on the modification, read below.
Client M.S. in San Jacinto, California
Loan Payment: $3,100
Loan Interest Rate: 6%
Loan Payment: $1,561
Loan Interest Rate: 2%
Monthly Savings: $1,539
Percent Savings: 50%
With a loan modification, De Novo Law Firm was able to save the client nearly 50% of her monthly payment so that she could afford to keep her investment property. The loan modification is unique for multiple reasons. First, investment properties fall outside the guidelines set up for modifications under the Making Home Affordable Program. As such, many investment properties do not qualify for any type of assistance. In this case, the workout attorneys at De Novo obtained a solution that allows the client to keep the investment property and immediately show a positive cash flow.
If you are debating whether to keep an investment property through a modification, or whether to short sale the property, contact our office today for a free consultation at (951) 801-5570. We can advise you on the legal ramifications of each decision and help guide you to the decision that is best for you.