SOURCE: Consumer Protection Assistance Coalition

Consumer Protection Assistance Coalition

February 08, 2012 00:01 ET

Consumer Protection Assistance Coalition (DE) Wins a 40% Principal Reduction and a 2% Interest Rate for the Life of the Loan

SANTA ANA, CA--(Marketwire - Feb 8, 2012) - Luis Rodriquez had almost given up the hope of keeping his home after several frustrating efforts to obtain a simple Loan Modification on his own from Ocwen, the company who he thought was his Mortgage Company.

Shortly after hiring a company to obtain the Loan Modification he needed, he received a Notice of Trustee Sale, his home would be auctioned off on 07/14/2011.

Determined to retain his home of 17 years, he sought out assistance from Consumer Protection Assistance Coalition (DE), a non profit law clinic referred to him by one of his neighbors.

According to Attorney Gary Lane, Esq., the President and Senior Attorney for CPAC (DE), "We consistently see homeowners wrongfully rejected for simple loan modifications when our software clearly shows the client's obvious eligibility for existing programs. When you take into consideration being able to drop an interest rate down to 2% and extend an existing term up to 480 months, you would think almost no one would be losing their home today."

Lane continues, "It's unfortunate, but most people don't realize that the lenders they typically make monthly payments to are not the current Note Owners, they're only servicing the loan. We feel that's why we typically have much better results; we've uncovered a process that involves the current Note Owner and can make the entire foreclosure process against the law. We often find the Note Holder has no idea the Homeowner wants to retain the home, let alone sustain it with a minor adjustment that often makes more sense to them than foreclosure. Today many servicers are being sued by the Note Owners; we take full advantage of that for the homeowner. I think what happened in Mr. Rodriquez's case, as in the case of many homeowners like him, once the Note Owner realizes the foreclosure may not be completed legally, a sustainable settlement makes good sense."

On 1/12/2012 Mr. Rodriquez signed a Loan Modification agreement that dropped his Monthly Payments from a variable 6.5% interest only payment of $2,011.99 down to a fixed 2% interest rate for the remaining life of the loan at $558.86 principal and interest payment. As an added bonus Mr. Rodriquez will have a Permanent Principal Reduction of $124,439.01.

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