Alissa and her husband were sued for foreclosure by Dortmunder Bank on their $264,000 mortgage on April 16, 2008. At that time they sought out the services of their family attorney for representation, and he was able to successfully keep the Bank at bay for 2 years, at which time he referred them to our Office. Even though their initial interest rate was over 7%, given the fact that the rate was adjustable, it reached a high in excess of 11% at one time, resulting in whopping payments of $2,653 per month, which Alissa and her husband could ill-afford.
Within the past few weeks, after a 4 ½ year battle in court, the Bank finally stepped up to the plate and did what it should have at the very beginning – give Alissa and her family mortgage relief, allowing them to succeed in paying their mortgage, and stay in their home. And the relief offered is indeed incredible. After not making payments on their mortgage for nearly 5 years while their legal battle continued, the Bank reduced the interest rate to 2%, thereby lowering Alissa’s monthly payments from their high of 2,600 to $1,000, a drop of over 60%! Better yet, the principal balance of Alissa’s loan will be reduced $63,500 each of the next 3 years, so long as she is on time with her payments. This is a reduction of almost $200,000 in the amount she owes!
It is extremely important to note that without doubt had Alissa not been extremely perseverant; she would have lost her home years ago. Ironically, but not surprisingly, her unbelievable loan modification came courtesy of HAMP, a federal government program initiated 3 ½ years ago. What that means is that Alissa should have been offered the relief she finally was years ago. Once again, Alyssa’s story is a real life example of the old adage; “Good things come to those who wait”, with two words added; “and persevere”.
Note from the author: If you have questions or comments regarding this or any Foreclosure Story article, please visit www.mcgookeylaw.com
Next week: The story of the McQuinns, whose two-year legal fight to save their home appears to have finally come to a successful conclusion.
Copyright 2012 Daniel L. McGookey
This is a weekly column by Sandusky attorney Dan McGookey, devoted to telling true stories of homeowners who have been victimized by a lending system that makes it profitable to foreclose. The names used have been changed for privacy purposes.