Chase Loan Modification - Pre-qualified!

[T1dc35]

when Obama Plan Starting? Chase told me if I'm not approved for obama the give me other plan. but i'm wory about my credit because everyting will go up after this.

[snapple candy]

I suspect the reason they wont give terms before trial period is cuz they want the interest to go up or something will change that will be in their favor, like find a loophole. They have been dragging this out for so long, why not just do more of the same?
I f I understand it right, trial mod payments are lower than regular payment. They report that shortage as late since it isnt the full payment. I have never heard of them going back and erasing late payments. Sounds like bs.

[T1dc35]

I know but Chase told me. i don't belive. and everyting just not right nothing in writing just fast phone call and run your life and the change story all time.

[Kalvin09]

***:

After reading the latest threads, looks like most of the people in here has got the forebearance/repayment plan from their respective loan analysts.

My analyst has also offered the same plan to me and she said that Obama plan is being handled by a 3rd party company. She wanted me to take the repayment plan from her........but why is Chase not offering the Obama plan to us? I have asked the same question to her, but she said she deals with the forebearance plan and not the Obama plan........It is so weird at Chase, the left hand and the right hand work differently.......and you know what ,,,,,my analyst is from the Resolution team.....I expected the Res team to know all about these loan modifications but they do not....

How can all of us get out of this confusion? Why is Chase offering forebearance/ repayment plan when Obama modification is available?

[Kalvin09]

***...any feedback on the above question? I understand you will not be able to give a clear direction but with your experience with Chase, what do you suggest I do?

[Moe Bedard]

my experience with Chase was a very different one............while the process took alot longer over a year ago.............the overall experience that I had was a good one.

I am not sure what the reason is that this is happening.........

This is an excerpt from an article on why modifications are so hard to get.


Payments from homeowners are collected by servicers and paid to investors holding the bonds backed by that mortgage. So it has fallen to these loan servicers to try to modify mortgage terms for homeowners whose loans were sold into these pools. So far, that process has involved a painstakingly slow review of each loan, something most servicers weren’t originally set up to do.

Each mortgage pool comes with different guidelines for how to deal with bad loans. Some don’t spell out clearly who has the authority to make changes in individual loans. Some trusts are managed by two layers that include both a servicer and a master servicer. If a servicer decides to modify a loan, it still faces a potential legal challenge from investors.

[T1dc35]

chase not doing Obama plan anymore, told me today.but i don't know what next step

[Kalvin09]

***...thanks for the reply...here is an update from today

I just got off the phone with Chase Home Retention Department.....they are doing the Obama plan......

When I received the Fedex package from them, the payment dates were Apr 20, May 1 and June 1 but today they told me the payments are due on Apr 20, June 1 and July 1.
As they were unable to answer my questions, I did not send the documents but today they have confirmed that if a homeowner is current on payments before entering the trial period, he/she will be reported as current(and on a modification) which is better than reporting as late.......I tried talking to 3 different reps and all 3 gave the same info. Atleast now they are streamlined......

I had a long discussion on why I did not send the payments by Apr 20.....they kept on saying I was disqualified.....I really had to fight with them to get onto the program......they agreed May 1, June 1 and July 1 as the trial payments now.....I will be sending the first payment today.......I am not sure what they will do....but there is no other go for me......except to believe them and submit the documents.....

did anyone already submit the documents before Apr 20? Did they call to check the status? Any updates...

[shade]

Kalvin...Did you have to send all your documentation to Chase before they would get you a new payment for the trial period?

Also may I ask the terms on your mod? I am looking to see how much leeway Chase is giving

[Kalvin09]

shade.....first they took my financials over the phone and then they sent me MHA documentation....with 3 trial payments at 31% of gross income.....

the terms on the mod will be decided at the end of 3rd trial payment.....

[determined1]

From what I understand Chase as a servicer & organization have agreed to participate in the Obama plan. However, the investors themselves (especially if they are private investors) can choose not to particpate. That's what is going on with my loan, I'm being told the investor will not participate.

[smit5454]

I am not real knowledgable about the investors, but if one falls through or decides not to participate, is there a chance that someone else will? What about anyone who may have actually gotten a packet and is on the 3-month trial mod now, will they get a surprise at the end of the 90 days indicating, "ooops, so sorry, your hopes and dreams are now in a pile of $^&$& because your investor changed their mind. So sorry"?

[determined1]

The investor on your loan I don't believe changes at all. So they determine whether or not a modification is accepted at the end. That is the battle I'm currently in. My direct question to Chase has been why are you offering me a forebearance (which I have yet to see) when reps for my specific investor have already told me they are not participating in the Obama plan. I was given a lets wait and see response.

[Kalvin09]

All the rules are designed for their own benefit and comfort........They can misprint the documents and send them to the homeowners.......and they still expect the homeowners to send in the payments on time.......they can give multiple answers for the same question and still expect the payment on time.......Wowwww!!!

Buying a home and having a mortgage is almost a sin these days.........we pay for it even in the sleep!!!

[GS-ONE]

Kalvin09,

My first payment was 4/15, then 6/1, 7/1. I agreed and paid the first payment on time. I'm in a little different situation than you, I'm about 5 months behind and was prepared to walk away. but obama plan's 31% payment could save me.
I fought long and hard with Chase to see if they would re-do the agreement paperwork using official Obama Plan forms, but they would not. It doesn't appear they are doing any of the official Obama Plan forms. So it's pretty much just faith now. They did tell me that right after my second payment (6/1) they would start the paperwork on my loan mod. This is exactly as described in the Obama Plan Workout Plan guidelines, so that's encouraging. I will probably try to get an update within the next couple weeks with when June 1 gets nearer.

[CHANLY]

I called on 4/17 and was put through to an analyst that approved me for the Obama plan and said I would get the paperwork in 10-15 days w/ 1st payment due May1. She assured me if i did not get the paperwork in time she would call me. It's now May 1 and i have not received anything, tried to call and voicemail was full so I sent a fax w/ reminder that payment is due but don't have paperwork. Now I'm not sure if I should just sit tight and wait or try to call again. I'm afraid I might get someone else who will change the story. Has everyone gotten their paperwork on time??

[GS-ONE]

CHANLY,

I also never got the packet they said they mailed. So I told my analyst to fax it to me, which she did. I seriously doubt they will change their mind because this so called Obama plan pre-qual/forbearance plan they've been pushing is more to their advantage than ours, since they are not using official obama plan language in the agreement.

[smit5454]

Not getting what was promised is the norm, but hopefully we will see people posting who have finally received their packets. I agree that it is in their benefit, and it's a win win. We get a lower payment and can stay in our homes, and they don't get stuck with a home worth $500k in todays market with a loan of $700k.

[salvega530]

Guys, is the Obama plan alsoo lowering the principal balanace? Also, is a down payment required?

[Moe Bedard]

From the Q & A:

Home Affordable Modifications are designed to prevent foreclosures by making mortgage payments affordable for working homeowners struggling to retain homeownership. The plan is not intended to replace equity lost by home price depreciation.


The servicers follow steps to get the payment on the first lien alone, including Principal, Interest, Taxes, Insurance, and HOA dues if applicable, down to the target of 31% of gross income. They are not reducing principal to get there....................one of the very last steps, if needed, is principal forbearance.............which leaves the amount taken off of the front end of the loan and places it in a balloon payment due when the property is sold or refinanced..........but they would be reducing the rate and extending terms first.

In summary, participating servicers will (in order):

• Determine that a loan meets the minimum eligibility criteria (owner occupied, originated before January 1, 2009, UPB equal to or less than $729,750). If yes:

• Obtain sufficient income information to determine if the borrower has a front-end debt-to-income (DTI) ratio of 31% or greater (verbal income may be accepted for initial evaluation subject to verification prior to final approval). If yes:

• Capitalize (add to the loan amount) accrued interest, past due taxes and insurance, delinquency charges paid to third parties (e.g., for inspecting the property), and escrow advances by the servicer – but not late fees or other default fees charged by the servicer;

• Determine how much of an interest rate reduction is required to get the borrower's mortgage payment to 31% DTI, and if the DTI still exceeds 31% at the rate floor of 2%, modify the loan in other respects specified in the Guidelines;

• Apply a Net Present Value (NPV) test to determine if modification (including the incentive payments) provides the investor with a better financial outcome than foreclosure. If yes:

• Put the borrower on a trial modification at the new interest rate and payment for three months.

• If the borrower is current at the end of the trial modification period, the servicer will execute a modification agreement that includes escrows for taxes and insurance even if the prior loan was not escrowed.

[salvega530]

thanks ***!!

[Kalvin09]

Those who have taken the 3 trial payment plan from Chase, please let me know, where the second and third payments need to be sent to....

The first payment I sent, was to 31 Inwood at CT.

[Calli09]

Kalvin09, I am on that plan (or at least I think I am)...anyway, I just mailed my #2 payment in yesterday. I was told (when I called the 800# that came in the fedex pkg) that I could pay either to the original pmt address, or to the 31 Inwood CT. I chose to pay to my original place, which happens to be in AZ. I sent the lower pmt, along with one of my pmt stubs from my regular statements that I receive. I was told on the phone that pmt #1 was the only one that HAD to go to CT. Only my experience, of course.

[Kalvin09]

Thanks Calli09.......I just sent my second payment to the Columbus address where I usually send my regular payments....... I spoke with few reps at Chase and they have asked me to send this payment to the Columbus address.....

[HK2828]

Why there is so many different addresses to send the payment? For my case, I was told to send the payment through western union with code chase and state code OH.