I just got denied from CHASE: need advise!

[Mountain life]

I applied for a loan modification in April 2009. I went through all the frustration like everyone has: submitting my paperwork again and again until finally in August 2009, things were progressing to the point that my loan application finally went to an underwriter. I am retired and have a 9.3% variable interest only loan that is set to re-adjust in October 2009.

My mortgage payment is over 60% of my income and I am struggling monthly to make my payment. I was current on my payment until this month (September 2009) due to a medical emergency. My conversation last week with a representative from imminent default informed me that my application was being reviewed by the underwriters to submit to my investor Deutshe Bank for review. Today when I called for an update I was told that the CHASE underwriters denied my application because of : insufficient income to handle a loan modification ( I net $7800.00 a month) and a hardship that is not permanent.

I was further told that I would not qualify for a CHASE in-house modification unless I was more than 60 days late on my mortgage payment prior to applying for the CHASE modification. I do not know what to do. I have already had NACA submit a loan modification proposal to Chase on 8/18/09, but have received no response from CHASE on that proposal other than today's rejection notice. I would hire a attorney if I could be referred to someone reputable that would help me just get a reasonable loan modification from CHASE. I do not know if it would help if I go to the Save the Dream event from NACA which is scheduled in Los Angeles in the next couple of weeks. I am afraid to not make my house payment for 60 days considering that it takes CHASE so long to process a modification application. Does anyone have any suggestions?

[cliffdweller]

Hi Mountain Life,
Like your handle...I am a mountain girl myself.

Would you mind sharing what your mortgage payment was? Do you have a large amount of credit card debt? Did you plug your figures into the NPV worksheet that was circulating on this forum...and if so, did it show a pass?

What was the hardship you described to them?

I am trying to understand the basis for approval vs decline.

If you have posted all this info elsewhere, I can go look.

Thanks very much, and the best to you! We just need to figure out what
qualifies I think, and then hold their feet to the fire.

[Mountain life]

Cliffdweller:
Thanks for your input. My mortage payment is $4131.00 without taxes and insurance . With taxes and insurance (which I pay separately) my payment is 4843.51 a month. I have about $3000.00 in credit card bills, and two tax lien payments of $400.00 each totaling $800.00 a month.

I described first of all my most significant hardship was the 9.3 variable loan which is set to change in October 2009 which is more than half of my $7800.00 monthly retirement income and the loss of a part-time job. My expenses are compounded because I live in a mountain area in which I must pay $500.00 a month alone for heating during the four winter months (due to snow) and extremely high electric and water bills. I am also compounded with some medical expenses. I am just asking for a mortgage payment to be 31% of my income to be able to afford my mortgage payment.

Initially when I called this morning to CHASE I was told that my application was rejected due to insufficent income and not a permanent hardship. I subsequently called a Making Home Affordable counseling website and with their representative we called back to get clarity on the reasons for the rejection of my loan modification request. ( I called Making Home Affordable because NACA could not give me any answers when I called them). I was on a conference call with the Making Home Affordable representative with the Chase representative who stated that I was not approved for a HAMP modification because my hardship was not permanent. He said that there was no notation on my file by the underwriter stating that I had insufficient income, the only problem he said was that my hardship was not permanent!

Right now my application, according to this representative from CHASE is still active (but rejected) so he suggested I write a clarification of my hardship to prove that it is permanent. I am so frustrated and upset, bu I along with the Making HOme Affordable representative will be sending CHASE some more documents to try and demonstrate that I have a permanent hardship, and need them to reevaluate my application.
THank you in advance for your input.

[litehouse01]

Mountainlife ...were you already making trial mofication payments to chase? If so how many had you made before receiving this rejection...the reason I ask is my husband and I are both retired and are getting ready to make our 3rd trial modifcation payment and would hate to be rejected because we are retired that is permenate my husaband did go and get another fulltime job to offset the retirement because it was not enough money coming in.

[Mountain life]

Litehouse01:

I never was offered the opportunity to for a trial modification. As of August 2009, I have been current on my loan, and have never been late making a payment which was quite difficult. I was told since I have been denied a HAMP loan, the only way I could apply for a CHASE modification is if I was at least two months behind in my payments. I hope you get your permanent loan. I plan to keep fighting to try and get one, but this entire process is painful.

[cliffdweller]

Hi Mountain Life,

If I'm understanding your figures correctly, you are currently going negative each month by $2000+, correct (with all of your living expenses)? If this is so, the bank may consider that you would be at risk of re-defaulting, even given the maximum loan reduction available.

This is not advise, but have you considered trying to settle your credit card debt for a lesser balance? The way I am seeing it, you need to get your other expenses down, then I think the bank would go for it. That is just a thought.

[Mountain life]

Cliffdweller:
The total amount I owe in credit card debt is about $2000, so my required monthly payment is about $100.00, however right now I am not making any credit card payments because I am struggling to pay my mortgage. The reason I was denied was because CHASE underwriters determined that my hardship was not permanent. I listed an array of hardships, but the one they focused on was my loss of a part-time job which only supplemented my retirement income by $300 (three hundered dollars) a month! After my mortgage payment and the payment of all my bills I am left with about $200 a month to live on.
It is impossible to find a job in California now, especially if you are retired with a disability! I have submitted a letter to the underwriter asking him ro review all my submitted hardships again! I also am going to the NACA save the dream conference scheduled for nect week in Los Angeles.

[cliffdweller]

OK gottcha! sorry I misunderstood...thought you were paying $3k in cc each month..sounds crazy, but some people are!

I understand that they are focused on the hardship issue...I just thought the financial angle was a bigger deal...but not so now that I understand. Think the "hardship not permanent" is just a way to deny people...don't you? Best of luck getting around this..sounds like you will be able to. My husband is a custom carpenter with 20 years experience on the West Coast of California. He used to make $45/hr and now is struggling for $30..gonna get worse before better. Is that permanent? who knows.
They ought to be able to get you out of that high interest rate..keep going..you've got a case!

[Jillian118]

I was just looking on the naca web site & I know that they have a refinance program also. I know a mod would probably be best, but they are showing 4.65% right now. Just a thought for you. This whole run around with chase is just frustrating as hell

[Mountain life]

Cliffdweller and Jillian118: Thanks for your advise, I appreciate it. You gave me some great options. Last night I sent my letter to the CEO's office (Jamie Dimon) requesting that the underwriter review my permanent hardship. I was told my the CHASE representative yesterday that I should sent a letter further explaining how my losing my supplemental income job was a permanent hardship along with my other hardships. The problem however was that the representative said that the underwriter may not be forwarded my letter and it might just be filed away! I do no understand why the underwriter, who is making a decision that affects our lives is not available to talk to us!!!

[flagirl4444]

Is this an ARM loan? If so, under HAMP the rate adjustment could be considered the actual hardship.

[Mountain life]

Flagirl444: I do have a ARM loan, and when I was told that I did not have a permanent hardship, I sent a letter via fax to CHASE's CEO Jamie Dimon about my primary permanent hardship a high interest (9.3%) interest only, ARM loan due to reset. I was called the next day and told that my application would remain active while the underwriter would review the information I sent (even though I included all my hardship information in my original application) I am still going to the NACA save the dream conference in LA on the 24th of this month, because it is clear to me that CHASE is not complying with the HAMP requirements.