Our attorneys at First Source Law have acquired yet another loan modification with Chase Bank. This time it was on our client’s first mortgage in Long Beach, CA of LA County.
Original Loan Terms:
Principal Balance: $409,000
Monthly Payment (P&I+Escrow): $2,072
Delinquent Balance: $76,500
New Payment Terms:
Monthly Payment: $1365.46
Interest Rate: 2% for first five years – 3% following year five and capping at 3.375%
Previous delinquent balance will be deferred to the end of the loan.
In each of the first five years, if payment is made on time each month, $1,000 will be paid (by the bank) off the principal balance, totaling $5,000.
This loan modification saves the client just over $700 a month (34% savings). This will save our client over $8,000 (including the $5,000 payment incentive) for the first five years, while also insuring a low interest rate for the remainder of our client’s loan balance. Most importantly, the loan mod prevented foreclosure and will bring our client’s loan current.
Our firm is dedicated to helping clients file bankruptcy, obtain loan modifications, and helping clients get a fresh start. For more information on what First Source Law can do for you, please fill out our free evaluations for bankruptcy and loan modifications.
This post was written by Gina Berg