Chase Loan Modification - Pre-qualified!

[Kalvin09]

Hello ...

I am new to this forum and after reading through some of the threads, I was convinced that, this is the correct place to look for advice and assistance.

Here is my story so far....

I bought my house in June 2007 for zero down, 170K with 7.25 %. My monthly mortgage payments so far have been 1300 per month(principal, interest, escrow and insurance)
I called Chase in the second week of Mar 09 and after few questions on my financial situation, they have mentioned that I was pre-qualified for a loan modification. However they did not ask me any documents so far. Since then I have been calling Chase to find out the status and they keep directing my call to the loan analyst, who never picks the phone or returns my call.

In the meantime, I received the mortgage statement for next month(april) and to my surprise, I found that the monthly payment has been increase to USD 1900. This is due to the escrow balance going into negative for 2008. Chase paid the 2008 taxes and now they are increasing my monthly payment to compensate for 2008 taxes and forecasting the 2009 taxes. As I bought a newly constructed home in 2007, the taxes were low for the first year.

So far I have been current on my mortgage payments but with USD 1900 per month starting from April, I will not be able to afford it. I need a better plan for paying these taxes and I have been contacting Chase about it.......No help so far.....

What should I do? Should I pull up money and start paying USD 1900 for April ? I am worried, that if I miss a payment, may be the credit history will get affected....I am confused.....Or should I wait until a decision is made on the loan modification program? What if Chase does not make a decision, before my payment is due for next month????

Please help me .........

Thanks.

[Dan Bailey]

Kalvin
Glad you found the forum and posted.

Yes, if you miss a payment, your credit will be affected. Most likely, with the timelines we have been seeing, it will take more than 30 days to go through the process.

As far as contact with chase...somewhere in the chase threads there is a number to contact for loansafe members to chase..I will search for it.

[Dan Bailey]

Here is a link to their new program:https://www.chase.com/chf/mortgage/hasp#1

Number to call: 1 866-550-5705

[Kalvin09]

Hi Dan:

Thanks for your immediate response. The website and the phone number you have provided, is where I started my journey on this loan modification. I used the same number when I first called Chase to see if I am eligible for loan modification program and they said I was pre-qualified.

I read in one of the threads here that Chase has opened a Home Ownership centers and we can meet with the loan professional face-to-face. Do you think, it is a good option to meet with them face-to-face?

Please advise.

[Dan Bailey]

I think it would be informative and helpful, yes. The more contact the better.

[Kalvin09]

Dan.....here is an update...

I just called to take an appointment (face-to-face) and spoke with the Manager....he said that the personal appointments are given to only those who have missed their payments ......As I have been current on my payments so far, he wanted me to call the "Way Forward Team" at 1 866 550 5705(the same number that I called initially).
I told him that I already called the number and I was just told I was pre-qualified and no progress from there......He wanted me to wait one more week and give a call again to see the status......If nothing changes, he wanted me to call him again to check the status........

This is not going anywhere........being directed to some many different people......I really want my home and do not want to miss any payments........Right now, I am just hoping for the best.

[Dan Bailey]

Kalvin,
Although we are all anxious, the process does take time due to the numbers of homeowners attempting to get mods/refis.

[Kalvin09]

Dan/ ***:

At last I heard from my loan analyst today. She says that I will be put on a forebearance for 3 months with 31% DTI payment. After the 3months, and after the Obama's plan is clear, they will consider for a loan modification.

But these 3months, I will be reported as late payments to credit bureaus.

How is this helping? I think these banks are using the rules, so that they can get money from consumer as well as the Government.

If I agree to this forebearance, my credit score will be hugely affected(I guess) and then my credit card companies(some of them with Chase) will end up raising the interest rates to 30%.

If I do not agree, then I have to pay the 1900 dollars monthly. Can I request Chase that I will pay my taxes directly and to remove from their payment? Do you think that is possible?

Please let me know.

Thanks,

[Moe Bedard]

With the Home Affordable modification it is a requirement for the servicer to escrow taxes and insurance as that is included in the 31% target.


As far as the credit card goes...........I can only speak from my experience........Chase didn't raise our rate or do anything to the credit card when we were we had to default in order to obtain a modification.

[Kalvin09]

***. thanks for the reply.. Couple of things...

My Home owner's association dues and home owner's insurance is not included in the 31% DTI for the forbearance. Is this normal?

My regular payment was 1300 and due to the taxes, it went up to 1900 from this month, so the forebearance will bring it down to 1465. So if I dont agree with forebearance, and request Chase, that I will pay my taxes directly, can they put me on the 1300 payment(minus the escrow)?

If I go with the forebearance, how much do you think the credit score will get affected(approx)?

[Moe Bedard]

You would have to address that with Chase...........

I am not able to answer the question about how much your credit will be effected...........

[chasepmt2hot-firefighter]

***, Did you see a difference in your score once Chase reported you?

[Moe Bedard]

I didn't even bother to look at that time.............for you it is very different then it was for us, as it has an effect on your business...............

[Kalvin09]

Update......... Work out plan vs. Forebearance

Received the Fed Ex package yesterday from Chase Home Finance (Home retention department). It calls for "Home Affordable modification loan workout plan"
This plan asks for payment for April 20, May 1 and June 1. (I am current on my payments so far).

Today, I received a letter from my loan analyst "forebearance for a period of time" asking to make payments for May 1, June 1 and July 1.

These two are different plans. I think my loan analyst, just to get the work load off her, has sent me a forebearance agreement. I do not want to foreclose my house or go into any forebearance agreement. I just want my interest rate to get lowered.

So with all this confusion, I called the Home retention department, and they tell me that "the work out plan" is Obama's Home affordable program, and if I was current on my payments, I will not be reported late to the credit bureaus, during the trial payments, if I make the payments on time(makes sense, right?!)
And if I make one trial payment and does not like it, I can get back to my previous payment (no issue with credit reporting).
After I make the first payment and send them my documents(paystubs, tax etc), they will come up with the plan for next 5 years, lower interest rate or extend the terms. This sounds exactly what should happen to the consumers who are not late so far. When I asked him to provide this in writing, he did not give me a straight answer......He said that is what he has been trained to do with Obama program....

He also told me that the Home retention department is a third part company which was hired by Chase to help with the loan modifications.....

What should I do? My analyst wants me to go on a forebearance agreement(which I would not do) and home retention department puts me on a loan work out plan.

I am not sure who is correct? How can I solve this mystery.......whom to trust........please help....

Is there any email of a Chase higher official, to whom I can send my story....or any other advice???? Is anyone in the same boat?

[Moe Bedard]

You can contact the executive and see if they can help.
1-800-242-7399

[Kalvin09]

***...update....

as you know, I received the forebearance and Home Affordable loan modification program.......Due to the credit hit, I have not accepted any of the programs .....

Chase executive team has assigned a new loan analyst on my case and they said they are waiting for Loss mitigation department to provide an update.

[love40love]

***,

Is this executive number telephone that you are providing useful for loans serviced by EMC?

Thanks
Love40love

[Moe Bedard]

It is Chase's executive team..............you would need to try it and see if they have your information there.

[Kalvin09]

***:

I just spoke to my loan analyst....and she wants me to take the forebearance offer instead of the Home Affordable Loan Work out plan.......
She says that forebearance plan is being offered by Chase directly whereas the HMP is being offered by a third party company....

And also regarding the credit reporting during the forebearance, she said they will report me as late but once the forebearance is completed, they will go back and erase the late payment reporting.....is this true? did this happend to anyone before???

Should I take the forebearance plan instead of the HMP work out plan?

Please help

[Kalvin09]

Did anyone here get a loan modification from Chase NOT under Obama plan???? If so how does it work?

[azdmsmith]

I talked to an analyst on 4/1 who said I was pre-approved for the Obama plan and gave me a May 1 forbearance payment amount and said I would have paperwork in 2 weeks. Never received her paperwork and her voice mail is always full. In the meantime I received a generic letter from the 3^rd party via Fed Ex and called in with my financial info as instructed. They said I would have paperwork in two weeks. Nothing from them either. A few days ago I was told the 3^rd party supersedes what has been done with my analyst. Today, the 3^rd party told me that they are handling the Home Affordable Mods and the other info my analyst gave me was for a Chase direct program so I will receive offers for both and I’ll have to decide which is better for me. Until I saw your post, this was the first I’ve heard of a Chase direct plan “competing” with the Home Affordable Mod. I should easily qualify for the HMP and Chase is reimbursed by the govt for a portion of it so I’m completely puzzled why they would be going down the path of a Chase direct mod? ffice:office" />
Is the Chase forbearance just a temporary forbearance or are they offering you a mod? You’ll have to really weigh both options. The HMP credits you $1,000/year toward principle, but the modification is for 5 years and then makes a permanent adjustment that I believe is based on the interest rate when your paperwork was completed. I suppose if Chase direct gave you a great rate for the life of the loan you’d have to really compare the two side by side to figure out which is best for you in the long run. Still makes no sense to me why they would offer a Chase direct plan if you qualify for HMP?

[T1dc35]

Kalvin09 I'm Same i waiting what plan chase give me. Chase told me maybe Obama plan but i don't know credit I ask and hi told me after 3 monts the will go back and erase late payment, but i'm never late and i will pay but hi told me will be late payment in my account.I waiting call today what plan the give me.

[T1dc35]

Realy no good for my credit because after everyting will go up, insurance interst in credit card i don't know what i can do

[T1dc35]

Anybody know why will be late payment in credit report? i paying every month on time.

[peggyinfl]

I think Chase has their own agenda that we don't know about yet. I dont think any one at Chase knows what their talking about. They are to vage with everything and people are signing these papers not even knowing if after this 3 month period they will be aproved and where it will leave them. These banks are not our friends. They are out to make money any way they can until the Government catches up with them. They havent and been caught not doing what the gov. tells them to do.
My papers had lines left off that are in the Fannie Mae guide lines. I was told by chase to make these 3 months trial payments more than the 31% (Im not late on my mortgage payments), that it would affect my credit and I probably would not be approved for the Obama plan because I am unemployed even though other income is permanant.
Why would I do this? I refused to take the BS. I think after everyones 3 months trial there is going to be big problems because these banks are looking out for themselves and tring to find away around the Obama's plan.