Nancy* and Trevor* were facing foreclosure on their home. Nancy was employed part-time, but Trevor had recently broken his back and was unable to work. Their three teen-age children all had part-time jobs while attending school. As a result of Trevor’s unemployment, he and Nancy were unable to make their mortgage payments. LSCD represented the family in the mortgage mediation process. They were initially denied a modification, but LSCD helped them redo their budget and produce better supporting documents. The bank again denied the modification, saying the family needed a $300 cushion each month, even though this requirement was not allowable under the federal modification program. LSCD informed the bank that this requirement was illegal and threatened to file bankruptcy. After further negotiation, the bank approved a trial modification that reduced Trevor and Nancy’s monthly payment by $500. Having successfully made payments on their trial modification, they are getting a permanent modification enabling the family to stay in their home.
*Client’s names have been changed to protect confidentiality.