One of the best feelings a lawyer can attain is the joyful smiles of a client. I cannot write enough about the faces of my clients when their mortgage has been modified. Some lose sense and start laughing while others tear. All of them share one feeling, the nightmare is over.
One particular client by the initials of H.C. comes to my memory. She lost both her husband and her employment during the later months of 2008. Her credit cards became maxed out from the costs of the funeral. Her savings were drying up in order to avoid foreclosure. When she asked her close family and friends for help, they were only able to afford drops of water in a dry ocean.
Walking down Brand Blvd, H.C. saw my office sign. She walked in and asked to meet with a member of my legal team as I was coming back from lunch. Her face was dry as her words crunched coming out of her mouth. I told my assistant to bring her some refreshments while I interviewed her.
Inside my office, she began telling the horrors of her ordeal. Her lender refused to modify her loan due to income reasons. Her previous employment record was short and her new employment was not seasoned, less than six month. At the same time, her lender refused to accept social security income as part of the financial statement.
New lawyers and real estate brokers would have considered her case to be hopeless; but not at The Habashy Law Firm. Utilizing both experience and wide knowledge in matters dealing with secured debts, my firm was successful at modifying her loan. First, I wrote a letter addressed to the US Treasury department with a copy sent to her lender. Second, we immediately drafted hardship letters and began a legal audit of her payment history and loan transaction. Third, we called the lender and demanded to speak to a person of rank. Finally we developed our own economic analysis for the bank, showing them that a modification was in the best interest of both parties.
Facing pressure from multiple sides, her lender was forced into the negation table. H.C. got one of the best modifications I have ever seen. At the beginning, her lender offered a rate adjustment of 1.5% and extension of mortgage term. As her lawyer, I advised her to deny this offer. We counter-offered and finally agreed on a 3% fixed rate for the life of the loan; and it was amortized over 40 years as opposed to the original 30 year term.
A week later, meeting at my office, H.C. signed the loan modification agreement. After my assistant took the papers away, she turned around and looked at me differently. Her face began to lift as her eyes were filled with joy. I remember seeing her teeth for the first time since she walked into my office. H.C. jumped from her chair and gave me a big hug thanking me and my staff. And nothing can beat the joy of relief.
Mr. John Habashy is California Attorney, and graduated of USC. His has extensive experience in distressed real estate and finance. He welcomes your remarks or legal questions at info@stopbanks.com or feel free to visit our website at: www.stopbanks.com
Clients’ names had been altered due to client – attorney privileges.
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