Time for a story with a happy ending. And a humble brag.
I represent an older lady (not quite little old lady, but close) in her foreclosure, pro bono. She had a signed modification agreement with her bank from a couple of years back, but for reasons still unknown to me, the mega-bank she's with has maintained that she failed to hold up her end of the bargain by providing financials. Financials, mind you, that the signed agreement do not call for. The agreement calls for her to make payments, which she has. She came to me about six months ago, distraught, saying that the bank had started returning her payments and was threatening foreclosure. I told her to deposit the returned checks in a separate account and not to touch them, and to continue to make payments as called for in the agreement, and to deposit the returned payments into the same account each month. "Your honor, my client has been trying to comply with her end of the bargain from day one."
I got in contact with the bank's lawyer shortly after first meeting her a few months ago, and he says, only thing I can do with mega-bank is resubmit for a new agreement. Horse ####, I say, knowing that client's financials are not as strong now as they were then, and further knowing that resubmitting gives mega-bank an excellent argument that my client did not believe the existing agreement was effective. I tell him to tell his client to honor the existing agreement or we will file a motion compelling them to, at their cost. He tells me that they have dismissed the action months ago, so good luck filing any motion. I check, and curses, it's true. They sent notice of a motion to dismiss without prejudice and say they copied client's lawyer at the time. Client claims no knowledge. Case is looking more and more like a lot of work for a lesser chance of winning.
Until - mega-bank changes firms. This case, along with a load of others, is transferred. I get a copy of the new entry of appearance, and god bless working in a small state, the new attorney is a law school class mate of mine. I call her instantly. Please give this one a look. I know it was dismissed, but this is madness. A judge is going to hate you when I move to compel your client to honor an agreement with a little old lady. She's been saving her payments aside, she can make a lump sum and continue on making payments under the old agreement. She says she will make a couple of calls, see what she can do.
She calls me this morning. They are insisting on a new agreement, she says, but they are not requiring new financials. I think your client will find the terms acceptable. She has a lilt in her voice. Okay, says me, I'll read it over. What to my wondering eyes do appear, but a new agreement with better terms than the one she had before. It is half a point lower in interest, but more importantly, requires no lump sum payment to start. She just has to start making her (smaller) payments on May 1!
I call my client to explain the new deal, and to get her to come in to sign. What do I do with the $10,000 in the other account? She asks. How did it get to 10k? I ask. Well I had 4 checks when I came to you, and I've deposited the other 6 since we started working together, and haven't touched them. Well what do you know, I guess that math makes sense. Once we finalize the agreement, I tell her, that money is yours to do with as you wish. They didn't ask for it to complete the agreement. We no longer need it as a bargaining chip; as proof that you were always willing and able to hold up your end of things. She cries. At first it seems a little excessive, but then I think, this morning, she didn't know if her house was gone in a few months. Now it's not gone, she has a smaller payment, and 10 grand in her pocket. Imagine that.