The Williamses came into our office in January of this year in dire straits. They had just received a Notice of Default from their mortgage loan servicer demanding a payment of over $28,000 within 30 days to bring their mortgage current; otherwise foreclosure would ensue.
Not only did the Williamses not have $28,000 readily available to them to cure the default, but their monthly payments of almost $2,500 on their $335,000 mortgage were well beyond their reach even if they did.
Fortunately, by using the “proactive approach,” we were able to keep the Williamses out of foreclosure while getting them the mortgage relief they needed. And the end result was nothing short of amazing.
However, before getting to that, an explanation of what the proactive approach is and why it can be so beneficial to homeowners struggling to make their monthly mortgage payments is important.
The proactive approach is simply addressing in a serious way your mortgage issues before they get to the critical mass state where a foreclosure is filed.
Keep in mind that mortgage loan servicers are paid a percentage of your loan balance, meaning they are disincentivized to work with you when you ask for mortgage help. They are actually paid more if you go into default on your loan.
Knowing that is the case, when we say working with the servicer in a “serious way,” we don’t simply mean asking the servicer nicely for help and then going away when they turn you away. We have seen it literally hundreds of times where the servicer will keep leading the homeowner on, like a puppet on a string, suggesting it will grant mortgage relief once it gets all the required documents, only to keep moving the goal line so that the homeowner never gets the relief asked for.
In the Williamses' case, dealing with the servicer in a serious way meant standing up to it, calling it out on its fraud, asking for about every document relevant to their loan imaginable, all while indicating that we stood ready, willing and able to negotiate the issue in good faith.
The end result? The principal balance on the loan was reduced from over $344,000 to $260,000, with their monthly payments dropping like a rock from $2,500 to $1,500. That puts the Williamses in a position where they can easily afford their payments and will live comfortably in their home for as long as they want.
Now that’s what we call hitting the home run!
Note from the author: If you have questions or comments- regarding this or any Foreclosure Story article or should you like to have a “free mortgage analysis,” please visit mcgookeylaw.com, visit us on Facebook or call us at 419-502-7223.
Kate Eyster contributed to this article.