De Novo Law Firm recently obtained a loan modification for a client with a first mortgage with Bank of America. Bank of America has been offering more principal reductions for clients as part of the state attorney generals’ settlement with major mortgage servicers. Our client owns a home in Glendale, California and was significantly upside down on her property. Due to unemployment, our client had not made mortgage payments in nearly three years. Despite being a few weeks away from her foreclosure sale, we obtained the following loan remod for our client:
Bank of America Loan Modification Results
Property Location: Glendale, CA
Mortgage Balance Before Modification: $796,000
Mortgage Payment Prior to Modification:$4,389.19 (interest only, taxes, and insurance)
Loan Modification Terms:
Mortgage Payment under Modification Agreement: $3,297 (includes principal, interest, taxes, and insurance
Interest Rate: 3.25%
Principal Reduction: $258,662
New Principal Balance: $537,338
Monthly Mortgage Savings: $1,092.19
The loan modification with Bank of America saves a significant amount for the client in two ways. First, the client saves over $1,000 a month in mortgage payments. Second, the modification also significantly reduces the mortgage balance by over $250,000. This mortgage principal reduction allows the client to now have equity in her home.
If you or someone you know is struggling to make mortgage payments, contact our office to discuss your options to modify your home, pursue mortgage litigation, or consider bankruptcy. Contact us today at (951) 801-5570.