Settled in a Flash, Shuster & Saben obtains loan modification for 85 year old client.

An eighty-five year old homeowner came to the Melbourne office of Shuster & Saben caught between a rock and a hard place.  Her property insurance company dropped her because she did not replace a thirty-year-old electrical panel in her home.  When her lender learned that her property insurance was not renewed it replaced the old insurance policy with a force-placed policy costing nearly quadruple the price.  The client could not afford to pay both her mortgage and the cost of replacing her electrical panel.

The client’s sole source of income was Social Security and she did not have savings available to pay for the expensive home repair.  The client had tried on her own, for months, without success,  to obtain a loan modification from her mortgage servicer. Prior to the filing of a foreclosure action, firm attorney Richard Shuster advised her that she since she could not obtain other insurance coverage until she replaced a dangerous, outdated, electrical panel and she could not afford force-placed coverage she had no other choice but to miss a few mortgage payments and use the money that to fix her home.  The client was encouraged to speak to the lender and let them know her situation.  Hopefully the homeowner could fix her electrical box and obtain a loan modification before the loan servicer brought a foreclosure action.

Unfortunately the loan servicer filed a foreclosure action after the client missed several payments.  When the servicer filed the foreclosure action, the client did not have sufficient funds to pay the firm’s usual fees for foreclosure defense and was given a hardship discount.  After being retained the firm moved to dismiss the foreclosure action and submitted a loan modification package for the borrower.  Less than sixty days after being hired, the firm has obtained a HAMP loan modification that will lower the client’s interest rate from 6% to 2.25%  The client has fixed her electrical box.  Shuster referred the client to top insurance agent to obtain a new insurance policy to replace the force-placed insurance policy obtained by the loan servicer.  With swift proactive representation designed to solve problems, the firm has helped another client save their home.

About Shuster & Saben:  Shuster & Saben tailors its approach to each clients unique situation with a goal of solving problems and protecting our clients home and assets.  If you want more than cookie-cutter foreclosure delay, a free consultation (for homeowners in foreclosure) is a phone call away. 

Pre Foreclosure Mediation Settlement Saves Client over $100,000.00

A Shuster & Saben client’s investment of $1,600.00 in legal fees, will result in over $100,000.00 of savings from a pre-foreclosure mediation agreement negotiated by firm attorney Richard Shuster. The client came to the firm’s Melbourne, Florida office after their prior loan servicer, Chase, denied permanent loan modification of their mortgage. Chase had placed the client in a trial modification that reduced their monthly payment from over $3,000.00 to approximately $1,648.00. After the client made their monthly trial payments Chase refused to convert the loan from a HAMP trial modification to a permanent modification.

After meeting with the couple, attorney Shuster recommended submission of a qualified written request to the loan servicer to investigate whether Chase had a valid reason for denying permanent loan modification. The firm then submitted a Qualified Written Request (QWR) to Chase for a flat, one-time fee of $250.00. Chase’s response to Qualified Written Request revealed that the loan was owned by the Federal National Mortgage Association (FNMA or Fannie Mae) and that Chase alleged that the permanent modification was denied because their file was incomplete. The clients asserted that they submitted all of the requested documents. Some consumer advocates refer to incomplete file denials as the “dog ate my homework” excuse for not making permanent modifications.

After Chase denied permanent modification the client creased making further mortgage payments. The client, a couple nearing retirement age, realized that they could not wipe out their retirement savings to save a home in which they were significantly upside down and had no equity whatsoever.

A few months later, the loan owner, FNMA, transferred servicing of the loan from Chase to Lender Business Process Services (LBPS). When the client advised Shuster & Saben of the change of servicers the firm submitted an updated HAMP application and updated financial disclosures to LBPS. Thereafter LBPS requested pre-foreclosure mediation.

Firm attorney Richard Shuster welcomed the chance to mediate the case before any foreclosure action was filed against the client. Shuster explained that LBPS was proactive and responsible by saving FNMA (the loan owner) the expense of paying a filing fees and attorneys’ fees to file a foreclosure action against the homeowner. Lenders often ask for as much as $4,000.00 to be added to homeowners’ loan balances to pay for such expenses. Since our firm did not have to defend a lawsuit, the homeowners’ legal expenses were also much smaller.

The client hired Shuster & Saben to represent them at mediation under a written agreement that called for a fee of $350.00 together with a success bonus form $500.00 to $1,500.00 depending on the nature of the loan modification obtained. ($500.00 for a small loan modification up to a $1,500 for a loan modification with both interest and principal reduction). The result obtained, a loan modification that will reduce the client’s interest rate to 2% for the next 5 years and to 5% thereafter, qualified the firm for a $1,000 success bonus. The total cost to the client was $1,600 ($250 for QRW, $350 Mediation, $1,000 success bonus). The client’s new mortgage payment of $1,561.78 is a huge savings from their original payment of over $3,000.00 and is less than their prior trial modification payments. At the mediation, attorney Shuster insisted that conversion of the new trial modification to permanent modification be guaranteed in writing and would happen automatically so long as all payments were made. Under the loan modification obtained by Shuster & Saben, the client will save over $85,000.00 during the next five years and over $100,000 over the life of the loan. Shuster’s biggest bonus was two hugs, from the couple whose home was saved by this settlement agreement.

To review the redacted mediation agreement and redacted confirmation letter from LBPS please click the links below.

Mediation Agreement

LBPS Confirmation of HAMP Modification

Shuster & Saben, LLC settles Wells Fargo Foreclosure Case with 3.125% Loan Modification

Before hiring Shuster & Saben to defend a foreclosure law suit filed against their Brevard County home our Rockeledge, Florida client all but begged Wells Fargo to modify their mortgage. The client completed a HAMP RMA (request for modification) sent Wells Fargo their bank statements and pay stubs and did everything asked of them by Wells Fargo. Ultimately Wells Fargo refused to permanently modify the client's mortgage despite the fact that the client's income qualified under HAMP guidelines. The client ultimately stopped paying their mortgage and continued to submit additional applications for loan modification. While their third application was pending the client received a notice of acceleration and ultimately a foreclosure action was filed against them. After receiving a free, no obligation consultation at the firm’s Melbourne foreclosure defense office, the client hired Shuster & Saben to defend the foreclosure action. After being hired the firm sprung into action by filing a motion to dismiss the lawsuit based on the Wells Fargo’s failure to verify the complaint and began an investigation of whether Wells Fargo violated HAMP serving guidelines by failing to modify the loan and by filing suit while a HAMP application was pending. At the first Court skirmish with Wells Fargo’s counsel, firm partner Richard Shuster, won a motion to dismiss and obtained a court order dismissing the foreclosure complaint (with leave for Wells Fargo to file an amended complaint within 20 days). ( Click here to read the Court Order ) Thereafter, Wells Fargo filed an amended complaint that was verified as required the recent amendments to Florida Rule of Civil Procedure Rule 1.110(b) which requires foreclosure complaints to be verified.

Shortly thereafter, Wells Fargo, extended a settlement offer wherein our client’s interest rate would be reduced form 6.875% to 3.125%. This modification would lower the client’s monthly mortgage payment from $1,910.47 (principal & interest without escrows) to $1,280.43 (principal & interest without escrows). With the modification our client will be able to keep and afford their home. During the next five years alone our client will save over $37,800 on their mortgage. Our clients case was resolved in under six months and as such their legal expense was a very small fraction of the amount they will save on their mortgage.

To review a copy of the loan modification agreement please click to the link below.

Loan Modification Agreement


About Shuster & Saben: Shuster & Saben is a law firm that understands the difference between Foreclosure Delay and Foreclosure Defense. We listen to our clients to understand their financial circumstances and tailor or defense strategies to achieve the clients goals. For clients that do not know what to do, we evaluate whether in makes financial sense to save their home and craft exit strategies for clients where loan modification is not a viable option. Where the lender bringing the lawsuit does not own the note or have legal standing to foreclosure we seeks the dismissal of the action against our client. We believe that banks are most likely to make offer generous settlements when they are met with a vigorous and through defense. Shuster & Saben is a firm of six lawyers with offices in Miami, Doral, Plantation / Fort Lauderdale, and Melbourne, Florida.