Facing foreclosure is terrifying, especially when unexpected hurdles appear. In this recent success story, United Capital Mortgage Assistance (UCMA) helped a homeowner overcome a complex situation involving Freedom Mortgage, a significant delinquency, and a surprise state tax lien.
Here is how we navigated the loss mitigation process to stop foreclosure and secure a favorable Combined Loan Modification & FHA Partial Claim.
The Challenge: Impending Foreclosure and $38,000+ Past Due
When our client first contacted UCMA, she was in a precarious financial position. She had fallen significantly behind on her mortgage payments with Freedom Mortgage.
Lender: Freedom Mortgage
Amount Past Due: Over $38,000
Original Payment (PITI): $1,259.27
Her goal was simple: save her home. We immediately sprang into action, helping her complete the required financial documentation. We quickly assembled a comprehensive loan modification package and submitted it to Freedom Mortgage on her behalf.
The Obstacle: A Surprise State Tax Lien
Just as we began negotiations with the lender, we hit a major roadblock. During our discussions, Freedom Mortgage informed us that a lien from the State of Utah had been placed against the property.
The homeowner believed the debt had been paid, but the lender had no record of satisfaction. Without clearing this title issue, the loan modification could not proceed.
UCMA Action: We contacted the Utah State Tax Commission directly using the Docket Number. We discovered the homeowner still owed $1,642.48.
While the client worked to pay this remaining balance, the situation escalated. She received a letter notifying her of an upcoming foreclosure sale date.
The Solution: Swift Action to Stop Foreclosure
Time was running out. Fortunately, the client was able to pay the Utah tax lien in full within 30 days.
Soon thereafter, we obtained a copy of the court-recorded “Satisfaction of Lien” and forwarded it to Freedom Mortgage along with additional client documentation to update our client’s package.
Because we submitted a full and complete loan modification package within the critical 37-day timeframe before the scheduled sale, Freedom Mortgage was required to:
Suspend the foreclosure sale.
Cease action from their foreclosure attorneys.
Complete a full loss mitigation analysis.
The Result: A Fresh Start with an FHA Partial Claim
The outcome was better than the client dared to hope. Freedom Mortgage approved a combined Loan Modification and FHA Partial Claim.
An FHA Partial Claim is a powerful tool that sets aside the past-due amount (to be paid later, usually when the loan matures or the house is sold) to bring the mortgage current immediately.
The New Terms:
Status: Current on Mortgage
New Principal Balance: $132,659.33
New Monthly Payment (PITI):$1,169.42 (Lower than her original payment!)
We reviewed the complex modification documents with the homeowner, ensuring she understood every detail. She signed and notarized the paperwork, and we verified that Freedom Mortgage received everything.
Today, her home is safe, her loan is current, and she is paying less per month than before.
Need Help with Freedom Mortgage?
If you are facing foreclosure or struggling with a denied modification, you don’t have to fight alone. Contact UCMA today to see if we can help you achieve a success story like this one.
Case Study: Saving a Home from Foreclosure with a Surprise Tax Lien (Freedom Mortgage)
Facing foreclosure is terrifying, especially when unexpected hurdles appear. In this recent success story, United Capital Mortgage Assistance (UCMA) helped a homeowner overcome a complex situation involving Freedom Mortgage, a significant delinquency, and a surprise state tax lien.
Here is how we navigated the loss mitigation process to stop foreclosure and secure a favorable Combined Loan Modification & FHA Partial Claim.
The Challenge: Impending Foreclosure and $38,000+ Past Due
When our client first contacted UCMA, she was in a precarious financial position. She had fallen significantly behind on her mortgage payments with Freedom Mortgage.
Lender: Freedom Mortgage
Amount Past Due: Over $38,000
Original Payment (PITI): $1,259.27
Her goal was simple: save her home. We immediately sprang into action, helping her complete the required financial documentation. We quickly assembled a comprehensive loan modification package and submitted it to Freedom Mortgage on her behalf.
The Obstacle: A Surprise State Tax Lien
Just as we began negotiations with the lender, we hit a major roadblock. During our discussions, Freedom Mortgage informed us that a lien from the State of Utah had been placed against the property.
The homeowner believed the debt had been paid, but the lender had no record of satisfaction. Without clearing this title issue, the loan modification could not proceed.
While the client worked to pay this remaining balance, the situation escalated. She received a letter notifying her of an upcoming foreclosure sale date.
The Solution: Swift Action to Stop Foreclosure
Time was running out. Fortunately, the client was able to pay the Utah tax lien in full within 30 days.
Soon thereafter, we obtained a copy of the court-recorded “Satisfaction of Lien” and forwarded it to Freedom Mortgage along with additional client documentation to update our client’s package.
Because we submitted a full and complete loan modification package within the critical 37-day timeframe before the scheduled sale, Freedom Mortgage was required to:
Suspend the foreclosure sale.
Cease action from their foreclosure attorneys.
Complete a full loss mitigation analysis.
The Result: A Fresh Start with an FHA Partial Claim
The outcome was better than the client dared to hope. Freedom Mortgage approved a combined Loan Modification and FHA Partial Claim.
An FHA Partial Claim is a powerful tool that sets aside the past-due amount (to be paid later, usually when the loan matures or the house is sold) to bring the mortgage current immediately.
The New Terms:
Status: Current on Mortgage
New Principal Balance: $132,659.33
New Monthly Payment (PITI): $1,169.42 (Lower than her original payment!)
We reviewed the complex modification documents with the homeowner, ensuring she understood every detail. She signed and notarized the paperwork, and we verified that Freedom Mortgage received everything.
Today, her home is safe, her loan is current, and she is paying less per month than before.
Need Help with Freedom Mortgage?
If you are facing foreclosure or struggling with a denied modification, you don’t have to fight alone. Contact UCMA today to see if we can help you achieve a success story like this one.
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