Foreclosure Avoidance and Loan Modification Success Story with SunTrust Bank
Dateline: Friday, November 15, 2013.
We met with the client initially in May of 2013. At which time, her property was in active foreclosure litigation.
In June of 2013, Emery Law, on behalf of the client, filed a Motion for Referral to Mediation. The court granted our motion in early October and the parties agreed, in lieu of a formal mediation conference, to do a Telephonic Conciliation Conference, with the conciliation conference being scheduled for November 15, 2013. The client was very swift and prompt in providing the requested and necessary documents for the conciliation conference.
The SunTrust representative and attorney were very responsive as documents were provided to them. In a 45 minute conciliation conference, in the comfort of my conference room, the client was approved for a trial loan modification. Her interest rate was reduced from 7.25% previously to 3.625%, with the rate being locked in for five years.
At the end of the initial five year term, the rate will step up each year by no more than 1 percentage point each year and based on the LIBOR average, but never to exceed her original interest rate. The term of her loan was not extended.
Due to the fact it was determined by the bank, and agreed with by the client, that the value of the client’s home was equal to the outstanding mortgage balance, the client did not receive a principal reduction on the loan.
The great news was that her payments, which previously were $2,972.00 per month, were reduced to principal and interest in the amount of $1,090, and with taxes and insurance, her total payment was less than $1,500.
Additionally, her second mortgage which was with SunTrust also was completely forgiven and written off in it’s entirely, leaving her with only a first mortgage with a payment she is very comfortable with making.
Her home and mortgage are equal at current market rates, and as the market increases, as it is predicted to do, she will soon be building equity in her home again.
As the bank’s representative explained the terms of the loan, my client, though the glass conference room door was giving her boyfriend the “thumbs up”, with a huge smile on her face.
When the conference was concluded, there were hugs and congratulations all around. The last thing I heard from my client was that she was taking the rest of the day off, and she and her boyfriend were going to celebrate with cocktails. I really wanted to go with them on this wonderful Friday afternoon, however we have more loan modification to work on and more success stories to write.
Emery Law successfully modified another loan for a client with SunTrust Bank under the HAMP program.
Attorney Barbara Brown