LBPS
RS and MS were stuck in a 7.125 interest-only ARM. There lender was Metlife, which transferred to LBPS.
This property was their personal residence. They owed around $293,750. They got behind in 2008. MS was in a car accident in September of 2007 and was seriously injured. She has not worked since the accident. She still has serious pain. She takes medication and pain killers. She is still involved in physical therapy. It may be years before she is able to shoulder a full-time job. They were surviving on RS’s income alone. MS may never recover fully to the state of health she once knew.
They made payments since September of 2009 under the terms of a forbearance agreement. They tried to convert it to a permanent modification but were denied. They were on the verge of foreclosure when they found me on the internet.
The problem is that the lenders deny modification but fail to make it clear why they are denying it.
I pointed out that the house across the street, very similar to RS and MS’s house, had sold recently for $220,000. I made a list of all the repairs that the house needed. I made a calculation of the NPV, Net Present Value of the loan if LBPS foreclosed versus if LBPS consented to a modification.
My clerk and I called LBPS weekly. You have to do that. Lenders often neglect a file unless you bother them.
On October 8, 2010, LBPS gave us what we were asking for, a 40 year amortization at 2% for five years, then at 3% for a year, then at 4% for a year, then at 4.375% for the remaining 32 years of the loan.
Because RS and MS had an income that was low, the payments are not sufficient to pay off the loan in 40 years. There will be a $95,000 balloon payment at the end – which the client can prevent by simply raising the monthly payments a small amount.
Despite the low income, LBPS agreed to the modification. Because the property was so far underwater, and because it needed so much in repairs, LBPS was still better off agreeing to the modification.
I wished I had your loan officer. I’ve been trying for 3 years to get help. LBPS have seem to fell asleep with my loan. I had First Horizon Mortgage they cried bailout and then I was sold to Metlife then to IBM then now to LBPS.
Please contact me. I have a short amount of time to show the fraud LBPS is doing with my account. I can get into much greater detail when contacted.
Thank you in advance,
Wendy
GirlRysanek@yahoo.com
LBPS is a fruad!
OK the document shown/final modification agreement still speaks of a trial period, from my research and understanding in dealing with LBPS myself, at the end of your “trial period” you may not qualify for the permanent modification. Does this document mean there is a trial and then definitely a permanent modification? I somehow doubt it and wonder what ever happened with this case. I find LBPS to be very underhanded and am personally not having a good experience with them. They cant tell me who holds my mortgage, other than it is a fannie mae loan. I think the government needs to pull the reins in on its handouts to these frauds and make them accountable, require them to make their paperwork accurate and legitimate first, then truly help people. Just my thoughts….
After you have made three payments, you get your modification. They cannot ask for more income evidence or anything else. See page 77 of the HAMP Handbook, which says:
The trial period is three months in duration (or longer if necessary to comply with applicable
contractual obligations) and governed by terms set forth in the TPP Notice. Borrowers who make
all trial period payments timely and who satisfy all other trial period requirements will be offered a
permanent modification.
See http://mortgage-modification-attorney.com/news/hamp-handbook-3-0/
My mother has LBPS and she’s been turned down twice. There is enough income and little expense since they are elderly and don’t owe anything other than a mortgage and regular monthly bills such as utilities. LBPS hasn’t even given a reason for DENIAL.
I will be getting HOME DEFENSE LAW GROUP to help. They are a law firm in Central Florida with a good reputation and A- rating. I know of many success stories. It seems to me that if you don’t get an attorney that specializes in stopping foreclosures, the lenders just don’t want to help.
If you mother has a lot of equity in the property, the lender is not obligated to cooperage with a modification. A forbearance agreement (with higher payments) or a Chapter 13 is the solution.
Odd it is, but it is true that your mother has to be two months in arrears to qualify for a modification. If she is current and if the loan is a Fannie or Freddie loan, she might be able to get a HARP refinance.
It is important that you go to a law firm for modification because the issues are very complex. Few attorneys work across state lines. To do so we need a sponsoring attorney in your state. Land law is different in each state.
I owe 290,000 on my home. We are current on the mortgage, but are struggling to make the payments. LBPS just allowed the short sale of a house exactly like mine(besides I have a pool) down the street for 140,000. They told me I needed to go throught all the paperwork to try for a loan modification, when all my neighbors have, and either were turned down, or LBPS lost paper work, and asked them to re-submit. I don’t see how that LBPS could deny that our house is not even close to value, when they allow a short sale for that amount. Could this be a pressure point to get them to modify my mortgage without all the paperwork? Seems to me that it would be in their better interest to work with me knowing that they are going to get paid, then piss me off to the point that I quit paying, and draw out the short sale process