AKA: SPS, Select Portfolio Services
I Just received an approval for a loan modification from SPS (Service Portfolio Select). The terms were as follows.
Self Employed borrower with a decrease in business volume (construction)
Current Loan Amount around $400,000
Old Rate 7.5% (5 Year Interest Only)
New Rate 2.0% 30 year fixed for life of loan (27 years)
Savings was approximately 865.00 monthly
I was very happy to get this approval due to the fact that I guarantee my loan modification services. It’s high pressure when you prepare all the paperwork and allocate several hours on the phone with negotiators to potentially receive a denial. I felt if I could get the rate down to around 3% then my client could save the home. I am now working on the 2nd with First Franklin and they are pretty tough to work with. I’ll post when that battle is over.
Note: Appproval on SPS Loan modifications have to go through a 3 month payment plan at the payment negotiated then if the financials jive and the payments are on time they approve the modified rate for the balance of the note. I’m adding this because the negotiator asked me what the borrower could afford and actaully asked for more than the new payment of 1448.00. She asked if he can make 3 payments at the old 2400. I told her this is a legitimate hardship and he just cant afford it right now. She agreed to the 1448.00 for 3 months. The borrower had just under 10,000 in savings and I managed to protect that by saying it was retiremnt. Also the financials have to be entered into the system online so make sure you are prepared. You need to have access to the borrowers account so its best to enter the numbers with the bowower present. Follow up that submission after 2-3 days and verify the numbers and they can give the conditional approval right then. Good luck.