WaMu/Chase Mod Moving Forward - Page 2 - Loan Modification Forum

cliffdweller · 05-29-2009, 11:21 AM

Hi Marie,

Our situation is similar. My first is $491,000 (12/06) @ 6.475% 5/1 interest only. I have a 2nd $71K at interest only variable - currently low at 3% $190/month.

I received a call yesterday from Chase Executive Resolution Dept.
Carla Brantley 866-605-9253 ext. 3682 who said she is the contact person. Unfortunately missed the call, and only get message machine. Will keep calling.

We will be 5 months passed due on 6/1, which makes me nervous. Might make a payment mid-month, but hoping a work-out comes before then. We have property tax and homeowners ins. due on 6/30 ($4,000) and hope that they
will amortize them in.

Would love it if they would wipe out the 2nd...have seen that in these threads recently.

Seems good that WaMu owns the loan in that they don't have to negotiate with a 3rd party....just don't know how generous they are....apparently WaMu deals must be approved by Chase, so seems like we just get the same or similar deal as Chase-owned loans....but I am guessing.

Sounds like you are making progress...will send good thoughts your way....what kind of 3 month deal are they talking??

Cliffdweller

cliffdweller · 05-29-2009, 06:03 PM

Hi Marie,
Talked to Carla in Executive Resolution today. Very nice person. Looks like we are approved for $1740/mo 3 month trial. She doesn't know the terms. She is going to email the negotiator, Sierra McCoy, and find out and let me know....don't know if PITI, what % rate, etc. Will keep you posted.

Marie T · 05-29-2009, 09:07 PM

Hi Cliffdweller,

That is good and it seems like it only took about a month if I read it right from your beginning post.

Called my guy at Chase that I had the meeting with last week just to see if they had everything in order and he told me he had sent in everything for modification 3 days ago so that was good news. He told me to give it two weeks and call him. What was your payment before modification? I am wondering with all our debt if they can even get it low enough so we'll qualify for a modification.

cliffdweller · 05-29-2009, 09:40 PM

Hi,
Our payment was $2645 interest only - no ins. or taxes. We had $3800 (without mortgage) in debt and $6000 net income...so that is 63% debt to income which is high...there was a little "fat" in the budget, but not much.
If we have to pay taxes and ins. on top of the $1740, it will be tough. We live in a high tax area (6400/year tax and $740/year ins....total $600/month). And no idea what is happening with the $14K arrears.

Yes - it was pretty fast ONCE we got things started with that gal in Florida. We started the process in November 08 and had to start all over in 3/09 because of Obama guidelines. Really ready to be above water and have this thing over...like everybody.

snapple candy · 05-30-2009, 07:27 AM

cliff,
it really doesnt matter what your expenses are. They dont care unless so mcuh, they wont qualify you. They figure 31% of gross income and that includes taxes and insurance. As to the arrearage, they tack it on to back end of loan although I am hearing they will negotiate that down if you ask.I have a 2nd with WAMU and goona start on that now that I just got HMP trial. I started 1 year ago and again with Obama guidelines. Put in app again April 15th and just got package. Good luck on yours.

cliffdweller · 05-30-2009, 12:09 PM

Hi Snapple,

Thanks for the post. That makes sense, but the #s don't quite add up in my case, so not sure how they are figuring the gross salary. Maybe they looked at the bank statements....will find out next week, hopefully. $1740 PITI works, but $2340 PITI does not...so could have more negotiation to go.

Did your work-out #s work out for you as 31% of gross? Good luck on your second...I haven't even gotten my head fully around the first quite yet.

What would be ideal for me would be if they would forgive $20K off my second, and put my Chase & WaMu credit cards on there. The interest rates have gone sky high. Have you heard of anything like this happening?

thanks again,

snapple candy · 05-30-2009, 06:51 PM

Hey Cliffdweller,
They should be going off the total gross on your application and not bank statements. My work out numbers did get to 31% of my gross almost exactly.

Yeah, I am just starting to work on the 2nd. I hear some knock it down substantially (or totally)and at a minimum reduce interest rates super low. I doubt they would roll cc into the whole package. I am sure the rules dont allow for that. Under fannie mae loans, they are required to modify 2nd if they modify 1st under Obama guidelines. I am assuming if underwater.

Well I just called my CC today to tell them I could make payment this month. They offered me 5% (was at 10%) for 5 years fixed but same payment amount. Have you called you credit card companies and asked? On one of the other threads, I heard to call every month for 6 mths and tell them you cant make payment. At the end of 6 mths, the will be willing to renegotiate and if you have some cash, they will settle for 20-40% of the amount. I am gonna give it a try. I guess this is what debt settlement companies do.

cliffdweller · 05-30-2009, 10:02 PM

Hi,
Maybe it is because my loan is WaMu owned..not Fannie Mae. We'll see what they say...really hope the $1740 is PITI. Do you know if you can negotiate again after the 3 month trial...like if your gross income goes down?

Sounds like a good plan on the credit cards. I've been considering bankruptcy on myself only (not my husband) but I really don't want to do it. I've been told that if you don't have any assets to take....why claim bankruptcy?? Just hard to not pay them and just leave it like that. Would hate for them to garnish wages or something. I don't know how I could come up with all the settlement amounts...would take forever (a lot of debt) and I don't think we are going to have much left over each month. Also, I believe you have to claim the amount that is forgiven on your taxes. I'm not sure which way to go on this.

snapple candy · 05-31-2009, 08:23 AM

Cliff,
YOu can email fannie mae or freddie mac and give them your physcial address and they can tell you if it is backed by them. This would be good infromation for you to know since lal their guidelines are posted.
I have heard that if my income goes down, that after three month trial, they review your income again before setting permanent workout payment.
You might want to consider setting up a consult with a good BK attorney to lake a look at all your options. In my case, because I had no assets to distribute and no money, all my debts were totally discharged and I started with a clean slate. Making a decision to file is a big step that should be thought out carefully. In my opinion, depends on how much debt you have and how overwhelmed you are financially. If you only have 10-30K, I am not so sure it is worth the financial hit to credit for years to come. That is an amount that is a you could find a workable solution thru negotiation. If it is considerable more and you cannot see the light at the end of the tunnel, that is something different. Letting debts go without BK leaves you open to garnishments and these debt collectors are ruthless and do illegal things.
You dont have to pay taxes on debt forgiven unless in foreclosure on a 2nd reports you to the irs (I think only applies to 2nd if you are in non-recourse state). General unsecured crdit card debt does not apply as far as I know. Go see a BK attorney and look at all your options. You might be pleasantly surprised and find some workable solutions.

cliffdweller · 06-01-2009, 08:58 AM

Thanks Snapple!
Really appreciate your knowledgeable help.

I checked Fannie and Freddie and we are not owned by either..called WaMu and they said it is WaMu owned.

I have over 30K in CC debt, especially now with all the late fees and penalties.
Did a little checking on the tax issue and found a site online that said that the CC company will send you a 1099 (if forgiven amount is over $600) but you do not need to claim on your taxes IF you were insolvent (negative net worth) at the time of the settlement. This is good news for some....like US

cliffdweller · 06-01-2009, 09:01 AM

Oh - I forgot...
So you claimed bankruptcy before? If so, I'm wondering how long it really takes to begin to re-establish credit. My friend showed me her credit report and she was back at a 800 score in 4 years - amazing - but this was 8 years ago!

pbharris4 · 06-02-2009, 05:50 AM

Quote:

Originally Posted by cliffdweller

Oh - I forgot...
So you claimed bankruptcy before? If so, I'm wondering how long it really takes to begin to re-establish credit. My friend showed me her credit report and she was back at a 800 score in 4 years - amazing - but this was 8 years ago!

We have almost exact same situation as you. We are still waiting to hear though. Should be soon. I hope. DH's income is $6925 gross, I don't work. Our mortgage was $2460 interest only 5/1 ARM. Where we differ is in cc debt. We have ALOT more (for various reasons). We decided to file BK. Was going to do a Ch13 in hopes that the "cramdown bill" would have been passed, but it hasn't so..we do fortunately qualify for Ch7, but want to reaffirm our house...trick is we need the modification for this.

Our loan and HELOC are both WAMU owned as well. This month we didn't make a payment. A first for us. Prior to 6 months ago..we had superb credit for the last 19 yrs. Not a late payment ever. Hope this is taken into consideration. They are aware that we will be filing BK in June or July and our credit cards have charged off the debt to collection agencies so we are going to have to do something soon. I'd contact a bankruptcy lawyer at least for a consult. We have $85,000+ so it was pretty evident of what we needed to do. It is my understanding that after about a year you can get a secured or low limit credit card and start to re build credit again. But only use for gas once or twice a month and pay off. A lot of times people who were good before paying on time ususally bounce back quicker. It's the repeat offenders that have a hard time getting restablished.

I hope our mortgage payment is about the same as yours and I hope they do something for the HELOC which is also owned by WAMU. IS yours owned by WAMU and did they do anything?

cliffdweller · 06-02-2009, 11:40 AM

The "Trial Plan Agreement" is on WaMu letterhead - no mention of the Homeowners Affordability plan under OBAMA guidelines that others are speaking about.

It addresses the First only. I am reading from other threads that there is a separate application required to modify the second.

The letter is cautious and tentative..."if you comply with all the terms of this Agreement, we'll consider a permanent workout solution for your loan once the Trial Plan has been completed."
It does not say trial modification and there is no indication that the $1740 will remain after the trial plan....nor is it clear where this figure came from. The figure is close to 31% of our gross for principal & interest, but no taxes and insurance. The letter says "All of the original terms of your loan remain in full force."

Yes - I have seen 2 attorneys for consult and have been told we qualify for chapt. 7 both times.

Hope this helps. Keep us posted.

pbharris4 · 06-02-2009, 12:23 PM

Hmmmm. Now that gets me thinking. I don't have 3 months for a trial period. I have to reaffirm (I think) before we file BK. If that's we will do. So sounds like the letter is just..pay us this amount for 3 months and maybe we'll do something to help you. Or maybe we won't. Sounds like the key word in your letter is "consider." It doesn't sound much like a workout plan. Have you called? I am wondering if you didn't make a payment what that would do? Since the loans are Freddic Mac/Fannie Mae it doesn't sound like they want to help AS MUCH. If I get that same letter..we'll probably have to leave and end up renting because I couldn't do that without any guarntee that the payment wouldn't change. Ugh.

pbharris4 · 06-02-2009, 12:33 PM

I meant since they ARE NOT Freddie Mac/Fannie Mae owned.

cliffdweller · 06-02-2009, 02:07 PM

You are reading it the same way that I am. It could be that they
are playing hardball.

I plan to use the condition of our home as leverage...severe fixer-upper when we bought it, husband is a Carpenter...if they foreclose, they will need to sell at a distressed price...Problem is that I am not clear what the value of our home really is..very few comps in our area within last 6-8 months. Assessors office said we will NOT get a tax break. I live in Los Gatos, CA which is a real nice area. It is possible WaMu could sell it for a reasonable price. We have done ALOT of work. 180 degree view of Mountains, 38,000 sq. ft. lot, so some handy people, like us, willing to buy because of view.

Anyway, I have a woman in Executive Resolution who emailed our negotiator last Friday to get clarity on the details of the trial. She said I should call Wed. if I did not hear back.

We will probably take the 3 month trial, and hope we can swing a good deal at the end. It almost feels like they are buying time...like WaMu is unclear about future direction. Not sure how much Chase figures in to the final decision.

snapple candy · 06-02-2009, 08:46 PM

Cliff,
I have filed BK (Chapter 7) in 2007. When you get the Home Affordability program, the cover sheet has the title 'Making Home Affordable" across the top and has a special govt seal with special inspector general and Troubled Asset relief program within the seal. Its called a fraud notice. There is also a trial period cover letter with WAMU is now becoming Chase logo that outlines "you may qualify for a Home Affordable Modification Trial period Plan" then instructs you again to send in same documentation as before if it has been over 30 days. You then have to sign a contract fro Trial Modification Plan (form 3156 uniform fannie/freddie) that outlines that you cannot afford your current mortgage,etc. and a hardship affidavit.
Too bad assessor wont cut you a deal. I am sorry to say lenders dont care about the condition of the house. I dont know if that argument will help you.
I think Chase is in control for the most part over WAMU cuz I have gone back and forth between Chase Exec resolution and WAMU.
HELOC modification requests are sent to loss mitigation under separate cover than 1st.
You are right, I think the 3 mths trial is to buy time to see if something changes in their favor. Interest rate cap is set at time of final mod which will be the prevailing rate. I think they are waiting for it to go up while they are still collecting the current higher rate that you have for original loan. I think they continue to earn the higher interest rate during trial period even though it is lower payment and that also tacked on the the tail end of loan.
I will take the trial myself and see what I get offered in the end. I dont have any warm and fuzzy feelings about it though. I am cautiously optimistic.

cliffdweller · 06-02-2009, 09:33 PM

Hi Snapple,
Thanks for all the info. We'll hope for a positive outcome in 3 months. My husband and I love our place, and we want to stay...no real aspirations to ever pay off the loan...so we're grateful for anything that is reasonably fair and affordable....cautiously optimistic is a wise stance I think.

pbharris4 · 06-03-2009, 07:00 PM

We got a call from Chase today thinking it was what we were waiting for. May 11th we got a letter saying we'd hear something about the loan mod.in 30 days. Well it wasn't THAT call. They called and requested updated info. paystubs, May's checking statement, utility bill, 09 taxes, etc. They said loan was being worked on. Husband told her about the letter and she had no idea. She said she doesn't know when there will be a decision just that they are workin gon. DH told them we are running out of time as far as BK filing. Some of credit cards have gone to collections. I don't know how long it will be before the try to get a judgement.

cliffdweller · 06-03-2009, 07:56 PM

I think that they have some protocols going on right now that may be
speeding things up. In other words, if this....then this... Between December
and April, no one seemed to be sure what to do..Have you tried calling the
Chase Executive Resolution Dept? I don't think it hurts to be working
that angle as well...I'll bet you'll hear within 2-3 weeks. I'm still waiting to
hear back from the Executive Resolution Dept. about the issue of what
happens after 3 months. Try again tomorrow. Will keep you posted.

cliffdweller · 06-03-2009, 08:56 PM

Also PB,
Don't you have some time to react between the notice
of judgment and actual judgment?? I have CCs that
charged off a couple of months ago, so am a little concerned
as well. I really would prefer to wait until the permanent
mod to do BK unless WaMu requires it in order for the mod...
know what I mean?

pbharris4 · 06-06-2009, 01:40 PM

Quote:

Originally Posted by cliffdweller

I think that they have some protocols going on right now that may be
speeding things up. In other words, if this....then this... Between December
and April, no one seemed to be sure what to do..Have you tried calling the
Chase Executive Resolution Dept? I don't think it hurts to be working
that angle as well...I'll bet you'll hear within 2-3 weeks. I'm still waiting to
hear back from the Executive Resolution Dept. about the issue of what
happens after 3 months. Try again tomorrow. Will keep you posted.

I apologize for not getting back sooner..I've had to gather paperwork, bake cupcakes, class parties, a graduation...etc.

I had my DH call the Executive Team. He got the lady's name and number, but she said she didn't know anything yet. He did tell her that we need to file BK in June or July so we were running out of time. We got a call the next day I believe, for updated paystubs, etc. Then they said they didn't know how long it would be. My DH got a call back the day after that from the woman he spoke with on the Executive Team and she said she would be overseeing our account whatever that means.

pbharris4 · 06-06-2009, 01:49 PM

Quote:

Originally Posted by cliffdweller

Also PB,
Don't you have some time to react between the notice
of judgment and actual judgment?? I have CCs that
charged off a couple of months ago, so am a little concerned
as well. I really would prefer to wait until the permanent
mod to do BK unless WaMu requires it in order for the mod...
know what I mean?

Yes, you do have some time react. I only received a letter. After 30 days they can proceed to get a judgement..but our lawyer said that it usually takes 2 months to get a court date. So you'd have up until the court date is what I understand. We were also told not to tell CC's that we are filing BK because they may speed up the process. You want the Modification BEFORE you file BK!! YOu have to include the mortgage or reaffirm the mortgage. Once you file BK the mortgage company doesn't have to help you really. Maybe I hope I explained that right.

cliffdweller · 06-06-2009, 03:51 PM

Sounds like you are busy. I know...life must go on in spite of all this!

Thanks for info. That is pretty much what I thought. My trial ends Sept. 30, so I have a while to wait until the permanent mod goes through. Just hope I can make it to then before being forced to claim BK. We don't have assets, but they could garnish my husband's wages.

Turns out the $1740 is indeed 31% of our gross at the time of app (has gone down since then), but does NOT include taxes and ins....that will bring the payment up to $2340, which is too much for us...so we have some negotiation to go. Hopefully that will be possible based on reduced income (Executive Resolution dept. seems to think so). We will ask for a step plan, unless we get
REALLY lucky and they offer 2% for the life of the loan or reduction of principal.
Shoot for the moon and hit a tall tree, I always say!!

One of my concerns is that several of the cc included in the bankruptcy will be WaMu and Chase....think that makes any difference?

My sister owns a real estate company and really believes interest rates will remain low as long as unemployment rate is high and economy is in the dumper. She thinks this little increase we are seeing right now is simply due to the large number of refi loans
in the hopper...designed to slow it down a bit. So we are hopeful for rates in the 4s in October!!

pbharris4 · 06-06-2009, 06:57 PM

Quote:

Originally Posted by cliffdweller

One of my concerns is that several of the cc included in the bankruptcy will be WaMu and Chase....think that makes any difference?

No. I have 2 Chase credit cards and I had a Circuit City account that was through Chase. They are separate departments.

05-29-2009, 11:21 AM	#26 (permalink)
cliffdweller Senior Member Join Date: Apr 2009 Posts: 177	Re: WaMu/Chase Mod Moving Forward Hi Marie, Our situation is similar. My first is $491,000 (12/06) @ 6.475% 5/1 interest only. I have a 2nd $71K at interest only variable - currently low at 3% $190/month. I received a call yesterday from Chase Executive Resolution Dept. Carla Brantley 866-605-9253 ext. 3682 who said she is the contact person. Unfortunately missed the call, and only get message machine. Will keep calling. We will be 5 months passed due on 6/1, which makes me nervous. Might make a payment mid-month, but hoping a work-out comes before then. We have property tax and homeowners ins. due on 6/30 ($4,000) and hope that they will amortize them in. Would love it if they would wipe out the 2nd...have seen that in these threads recently. Seems good that WaMu owns the loan in that they don't have to negotiate with a 3rd party....just don't know how generous they are....apparently WaMu deals must be approved by Chase, so seems like we just get the same or similar deal as Chase-owned loans....but I am guessing. Sounds like you are making progress...will send good thoughts your way....what kind of 3 month deal are they talking?? Cliffdweller

05-29-2009, 06:03 PM	#27 (permalink)
cliffdweller Senior Member Join Date: Apr 2009 Posts: 177	Re: WaMu/Chase Mod Moving Forward Hi Marie, Talked to Carla in Executive Resolution today. Very nice person. Looks like we are approved for $1740/mo 3 month trial. She doesn't know the terms. She is going to email the negotiator, Sierra McCoy, and find out and let me know....don't know if PITI, what % rate, etc. Will keep you posted.

05-29-2009, 09:07 PM	#28 (permalink)
Marie T Senior Member Join Date: Apr 2009 Posts: 434	Re: WaMu/Chase Mod Moving Forward Hi Cliffdweller, That is good and it seems like it only took about a month if I read it right from your beginning post. Called my guy at Chase that I had the meeting with last week just to see if they had everything in order and he told me he had sent in everything for modification 3 days ago so that was good news. He told me to give it two weeks and call him. What was your payment before modification? I am wondering with all our debt if they can even get it low enough so we'll qualify for a modification.

05-29-2009, 09:40 PM	#29 (permalink)
cliffdweller Senior Member Join Date: Apr 2009 Posts: 177	Re: WaMu/Chase Mod Moving Forward Hi, Our payment was $2645 interest only - no ins. or taxes. We had $3800 (without mortgage) in debt and $6000 net income...so that is 63% debt to income which is high...there was a little "fat" in the budget, but not much. If we have to pay taxes and ins. on top of the $1740, it will be tough. We live in a high tax area (6400/year tax and $740/year ins....total $600/month). And no idea what is happening with the $14K arrears. Yes - it was pretty fast ONCE we got things started with that gal in Florida. We started the process in November 08 and had to start all over in 3/09 because of Obama guidelines. Really ready to be above water and have this thing over...like everybody.

05-30-2009, 07:27 AM	#30 (permalink)
snapple candy Senior Member Join Date: Feb 2009 Posts: 1,247	Re: WaMu/Chase Mod Moving Forward cliff, it really doesnt matter what your expenses are. They dont care unless so mcuh, they wont qualify you. They figure 31% of gross income and that includes taxes and insurance. As to the arrearage, they tack it on to back end of loan although I am hearing they will negotiate that down if you ask.I have a 2nd with WAMU and goona start on that now that I just got HMP trial. I started 1 year ago and again with Obama guidelines. Put in app again April 15th and just got package. Good luck on yours.

05-30-2009, 12:09 PM	#31 (permalink)
cliffdweller Senior Member Join Date: Apr 2009 Posts: 177	Re: WaMu/Chase Mod Moving Forward Hi Snapple, Thanks for the post. That makes sense, but the #s don't quite add up in my case, so not sure how they are figuring the gross salary. Maybe they looked at the bank statements....will find out next week, hopefully. $1740 PITI works, but $2340 PITI does not...so could have more negotiation to go. Did your work-out #s work out for you as 31% of gross? Good luck on your second...I haven't even gotten my head fully around the first quite yet. What would be ideal for me would be if they would forgive $20K off my second, and put my Chase & WaMu credit cards on there. The interest rates have gone sky high. Have you heard of anything like this happening? thanks again,

05-30-2009, 06:51 PM	#32 (permalink)
snapple candy Senior Member Join Date: Feb 2009 Posts: 1,247	Re: WaMu/Chase Mod Moving Forward Hey Cliffdweller, They should be going off the total gross on your application and not bank statements. My work out numbers did get to 31% of my gross almost exactly. Yeah, I am just starting to work on the 2nd. I hear some knock it down substantially (or totally)and at a minimum reduce interest rates super low. I doubt they would roll cc into the whole package. I am sure the rules dont allow for that. Under fannie mae loans, they are required to modify 2nd if they modify 1st under Obama guidelines. I am assuming if underwater. Well I just called my CC today to tell them I could make payment this month. They offered me 5% (was at 10%) for 5 years fixed but same payment amount. Have you called you credit card companies and asked? On one of the other threads, I heard to call every month for 6 mths and tell them you cant make payment. At the end of 6 mths, the will be willing to renegotiate and if you have some cash, they will settle for 20-40% of the amount. I am gonna give it a try. I guess this is what debt settlement companies do.

05-30-2009, 10:02 PM	#33 (permalink)
cliffdweller Senior Member Join Date: Apr 2009 Posts: 177	Re: WaMu/Chase Mod Moving Forward Hi, Maybe it is because my loan is WaMu owned..not Fannie Mae. We'll see what they say...really hope the $1740 is PITI. Do you know if you can negotiate again after the 3 month trial...like if your gross income goes down? Sounds like a good plan on the credit cards. I've been considering bankruptcy on myself only (not my husband) but I really don't want to do it. I've been told that if you don't have any assets to take....why claim bankruptcy?? Just hard to not pay them and just leave it like that. Would hate for them to garnish wages or something. I don't know how I could come up with all the settlement amounts...would take forever (a lot of debt) and I don't think we are going to have much left over each month. Also, I believe you have to claim the amount that is forgiven on your taxes. I'm not sure which way to go on this.

05-31-2009, 08:23 AM	#34 (permalink)
snapple candy Senior Member Join Date: Feb 2009 Posts: 1,247	Re: WaMu/Chase Mod Moving Forward Cliff, YOu can email fannie mae or freddie mac and give them your physcial address and they can tell you if it is backed by them. This would be good infromation for you to know since lal their guidelines are posted. I have heard that if my income goes down, that after three month trial, they review your income again before setting permanent workout payment. You might want to consider setting up a consult with a good BK attorney to lake a look at all your options. In my case, because I had no assets to distribute and no money, all my debts were totally discharged and I started with a clean slate. Making a decision to file is a big step that should be thought out carefully. In my opinion, depends on how much debt you have and how overwhelmed you are financially. If you only have 10-30K, I am not so sure it is worth the financial hit to credit for years to come. That is an amount that is a you could find a workable solution thru negotiation. If it is considerable more and you cannot see the light at the end of the tunnel, that is something different. Letting debts go without BK leaves you open to garnishments and these debt collectors are ruthless and do illegal things. You dont have to pay taxes on debt forgiven unless in foreclosure on a 2nd reports you to the irs (I think only applies to 2nd if you are in non-recourse state). General unsecured crdit card debt does not apply as far as I know. Go see a BK attorney and look at all your options. You might be pleasantly surprised and find some workable solutions.

06-01-2009, 08:58 AM	#35 (permalink)
cliffdweller Senior Member Join Date: Apr 2009 Posts: 177	Re: WaMu/Chase Mod Moving Forward Thanks Snapple! Really appreciate your knowledgeable help. I checked Fannie and Freddie and we are not owned by either..called WaMu and they said it is WaMu owned. I have over 30K in CC debt, especially now with all the late fees and penalties. Did a little checking on the tax issue and found a site online that said that the CC company will send you a 1099 (if forgiven amount is over $600) but you do not need to claim on your taxes IF you were insolvent (negative net worth) at the time of the settlement. This is good news for some....like US

06-01-2009, 09:01 AM	#36 (permalink)
cliffdweller Senior Member Join Date: Apr 2009 Posts: 177	Re: WaMu/Chase Mod Moving Forward Oh - I forgot... So you claimed bankruptcy before? If so, I'm wondering how long it really takes to begin to re-establish credit. My friend showed me her credit report and she was back at a 800 score in 4 years - amazing - but this was 8 years ago!

06-02-2009, 11:40 AM	#38 (permalink)
cliffdweller Senior Member Join Date: Apr 2009 Posts: 177	Re: WaMu/Chase Mod Moving Forward The "Trial Plan Agreement" is on WaMu letterhead - no mention of the Homeowners Affordability plan under OBAMA guidelines that others are speaking about. It addresses the First only. I am reading from other threads that there is a separate application required to modify the second. The letter is cautious and tentative..."if you comply with all the terms of this Agreement, we'll consider a permanent workout solution for your loan once the Trial Plan has been completed." It does not say trial modification and there is no indication that the $1740 will remain after the trial plan....nor is it clear where this figure came from. The figure is close to 31% of our gross for principal & interest, but no taxes and insurance. The letter says "All of the original terms of your loan remain in full force." Yes - I have seen 2 attorneys for consult and have been told we qualify for chapt. 7 both times. Hope this helps. Keep us posted.

06-02-2009, 12:23 PM	#39 (permalink)
pbharris4 Senior Member Join Date: May 2009 Posts: 80	Re: WaMu/Chase Mod Moving Forward Hmmmm. Now that gets me thinking. I don't have 3 months for a trial period. I have to reaffirm (I think) before we file BK. If that's we will do. So sounds like the letter is just..pay us this amount for 3 months and maybe we'll do something to help you. Or maybe we won't. Sounds like the key word in your letter is "consider." It doesn't sound much like a workout plan. Have you called? I am wondering if you didn't make a payment what that would do? Since the loans are Freddic Mac/Fannie Mae it doesn't sound like they want to help AS MUCH. If I get that same letter..we'll probably have to leave and end up renting because I couldn't do that without any guarntee that the payment wouldn't change. Ugh.

06-02-2009, 12:33 PM	#40 (permalink)
pbharris4 Senior Member Join Date: May 2009 Posts: 80	Re: WaMu/Chase Mod Moving Forward I meant since they ARE NOT Freddie Mac/Fannie Mae owned.

06-02-2009, 02:07 PM	#41 (permalink)
cliffdweller Senior Member Join Date: Apr 2009 Posts: 177	Re: WaMu/Chase Mod Moving Forward You are reading it the same way that I am. It could be that they are playing hardball. I plan to use the condition of our home as leverage...severe fixer-upper when we bought it, husband is a Carpenter...if they foreclose, they will need to sell at a distressed price...Problem is that I am not clear what the value of our home really is..very few comps in our area within last 6-8 months. Assessors office said we will NOT get a tax break. I live in Los Gatos, CA which is a real nice area. It is possible WaMu could sell it for a reasonable price. We have done ALOT of work. 180 degree view of Mountains, 38,000 sq. ft. lot, so some handy people, like us, willing to buy because of view. Anyway, I have a woman in Executive Resolution who emailed our negotiator last Friday to get clarity on the details of the trial. She said I should call Wed. if I did not hear back. We will probably take the 3 month trial, and hope we can swing a good deal at the end. It almost feels like they are buying time...like WaMu is unclear about future direction. Not sure how much Chase figures in to the final decision.

06-02-2009, 08:46 PM	#42 (permalink)
snapple candy Senior Member Join Date: Feb 2009 Posts: 1,247	Re: WaMu/Chase Mod Moving Forward Cliff, I have filed BK (Chapter 7) in 2007. When you get the Home Affordability program, the cover sheet has the title 'Making Home Affordable" across the top and has a special govt seal with special inspector general and Troubled Asset relief program within the seal. Its called a fraud notice. There is also a trial period cover letter with WAMU is now becoming Chase logo that outlines "you may qualify for a Home Affordable Modification Trial period Plan" then instructs you again to send in same documentation as before if it has been over 30 days. You then have to sign a contract fro Trial Modification Plan (form 3156 uniform fannie/freddie) that outlines that you cannot afford your current mortgage,etc. and a hardship affidavit. Too bad assessor wont cut you a deal. I am sorry to say lenders dont care about the condition of the house. I dont know if that argument will help you. I think Chase is in control for the most part over WAMU cuz I have gone back and forth between Chase Exec resolution and WAMU. HELOC modification requests are sent to loss mitigation under separate cover than 1st. You are right, I think the 3 mths trial is to buy time to see if something changes in their favor. Interest rate cap is set at time of final mod which will be the prevailing rate. I think they are waiting for it to go up while they are still collecting the current higher rate that you have for original loan. I think they continue to earn the higher interest rate during trial period even though it is lower payment and that also tacked on the the tail end of loan. I will take the trial myself and see what I get offered in the end. I dont have any warm and fuzzy feelings about it though. I am cautiously optimistic.

06-02-2009, 09:33 PM	#43 (permalink)
cliffdweller Senior Member Join Date: Apr 2009 Posts: 177	Re: WaMu/Chase Mod Moving Forward Hi Snapple, Thanks for all the info. We'll hope for a positive outcome in 3 months. My husband and I love our place, and we want to stay...no real aspirations to ever pay off the loan...so we're grateful for anything that is reasonably fair and affordable....cautiously optimistic is a wise stance I think.

06-03-2009, 07:00 PM	#44 (permalink)
pbharris4 Senior Member Join Date: May 2009 Posts: 80	Re: WaMu/Chase Mod Moving Forward We got a call from Chase today thinking it was what we were waiting for. May 11th we got a letter saying we'd hear something about the loan mod.in 30 days. Well it wasn't THAT call. They called and requested updated info. paystubs, May's checking statement, utility bill, 09 taxes, etc. They said loan was being worked on. Husband told her about the letter and she had no idea. She said she doesn't know when there will be a decision just that they are workin gon. DH told them we are running out of time as far as BK filing. Some of credit cards have gone to collections. I don't know how long it will be before the try to get a judgement.

06-03-2009, 07:56 PM	#45 (permalink)
cliffdweller Senior Member Join Date: Apr 2009 Posts: 177	Re: WaMu/Chase Mod Moving Forward I think that they have some protocols going on right now that may be speeding things up. In other words, if this....then this... Between December and April, no one seemed to be sure what to do..Have you tried calling the Chase Executive Resolution Dept? I don't think it hurts to be working that angle as well...I'll bet you'll hear within 2-3 weeks. I'm still waiting to hear back from the Executive Resolution Dept. about the issue of what happens after 3 months. Try again tomorrow. Will keep you posted.

06-03-2009, 08:56 PM	#46 (permalink)
cliffdweller Senior Member Join Date: Apr 2009 Posts: 177	Re: WaMu/Chase Mod Moving Forward Also PB, Don't you have some time to react between the notice of judgment and actual judgment?? I have CCs that charged off a couple of months ago, so am a little concerned as well. I really would prefer to wait until the permanent mod to do BK unless WaMu requires it in order for the mod... know what I mean?

06-06-2009, 03:51 PM	#49 (permalink)
cliffdweller Senior Member Join Date: Apr 2009 Posts: 177	Re: WaMu/Chase Mod Moving Forward Sounds like you are busy. I know...life must go on in spite of all this! Thanks for info. That is pretty much what I thought. My trial ends Sept. 30, so I have a while to wait until the permanent mod goes through. Just hope I can make it to then before being forced to claim BK. We don't have assets, but they could garnish my husband's wages. Turns out the $1740 is indeed 31% of our gross at the time of app (has gone down since then), but does NOT include taxes and ins....that will bring the payment up to $2340, which is too much for us...so we have some negotiation to go. Hopefully that will be possible based on reduced income (Executive Resolution dept. seems to think so). We will ask for a step plan, unless we get REALLY lucky and they offer 2% for the life of the loan or reduction of principal. Shoot for the moon and hit a tall tree, I always say!! One of my concerns is that several of the cc included in the bankruptcy will be WaMu and Chase....think that makes any difference? My sister owns a real estate company and really believes interest rates will remain low as long as unemployment rate is high and economy is in the dumper. She thinks this little increase we are seeing right now is simply due to the large number of refi loans in the hopper...designed to slow it down a bit. So we are hopeful for rates in the 4s in October!!

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