Any ideas on what the heck Chase is stalling for??

[Jillian118]

I really am very curious as to what thundering ball of poo is coming down the pike. For everything I read on here IF you can manage to get a 3 mo trial agreement...nothing is ever finalized. But I dont get why. I do understand that they are busy blah blah blah.

I have been dealing with Chase just trying to get noticed for the last 7 going on 8 months. It doesnt seem to matter if your behind or current you still get the same horribly inefficient runaround. And I whole heartedly belive that if they were writing this much in new loans....all systems would have been fixed and running like a well oiled machine many moons ago.

I personally have turned to NACA for some help...but I think they are stalling them as well...

Is anyone making ANY progress with Chase right now??

[Evan Bedard]

Hi jillian18,

Chase is very difficult to deal with right now and it seems they are only really offering these trial periods and yet have we seen a permanent modification after it is complete...

I'm not sure why these lenders are stalling on a permanent solution...

[cliffdweller]

Hi Evan and Jillian,

I posted this on my other thread because I have been wondering about the same thing (hard to keep the smiley face on that thread, but what the heck). I searched and searched the Internet to try to figure out what is going on. It is amazingly "secret." Finally came across this writer (actually written back in Feb. 09) who makes sense. The upshot of what he is saying is that the banks are searching for a way to resurrect the "bubble economy" where the rich get richer. He offers one
potential way they can do this - owning 1/2 our mortgage! He also describes what he thinks is the real solution - reducing debt - which isn't easy at all for the rich to stomach. Anyway, bottom line is - they are stumped! The only way through this one is to come from a new place - Cooperation, rather than Greed...

I'm going to keep on keep'n on because
I just don't think they are going to be able to foreclose on everybody and survive.

Anyways, here is the article:
Global Warming: Cutting the Mortgage Baby in Half

Love your comments...

My best,
CW

[MAXIE19]

Jillian:

Curious, what did the imminent default dept say when they called you today. Anything meaningful that could give the rest of us hope.

[briknope]

First of all, I don't know where everyone here is from but there are currently 45,000 homes in foreclosure in Maricopa County Arizona alone. They can't keep up with the flood of people in trouble. I see alot of people on here trying to get a mod that are current on payments. Forget it. When the home you live in finally comes to the brink of foreclosure then they will do something. Why keep paying for something you cannot afford? If you can't afford it, then negotiate to a lower price. Sure there will be a credit hit for missing payments, but not nearly as bad as a foreclosure or bankruptcy.

[Chased around and around]

The first quarter of this year 381,000 homes went into foreclosure in the US.

We all know the majority % of homes in default:

34% Arizona
33% Nevada
30% California
28% Florida

Banks have no idea what to do with all these defaults. There is no possible way they can possibly keep up with them. If you think about for a minute, how many banks are servicing all these loans, 9,10 maybe 11.

They are as behind in what to do as we are all behind in payments.

I will say for the most part the banks want their money, all of it. This is why they are doing nothing to remedy the problem. Could they do mods faster, sure but why, they are hoping the ecomnomy will turn around quickly and values will rise and they will make back all their principle amounts either from us or at auction.

Problem is reality, values will only go down as more and more homes default. 26% of defaults are now due to values that are underwater and we cannot refi. Nothing to do with employment status or lack of money coming into the household. Like I always have said, if the banks went across the boards 4% interest 30 year fixed, think for a minute how many of us would stay in our homes and how much money would be in your pocket to spend to pick up this economy.

I have seen it many times here in my area, banks do nothing to help the owner, property goes into forclosure, banks puts property on MLS for 35-40% of what is borrowed against that property.

Lets just wait a bit until the states start making the banks pay for the property taxes on all these empty properties. Here in CA property tax revenue down 37% due to foreclosures. When the state coffers come knocking you will see the banks falling over us to fix these loans and quickly...

[Marie T]

Hi Cliffdweller.

Re: the article, "Cutting the Mortgage Baby in Half"...wasn't that one of the original proposals to prevent foreclosures ...that homeowners would share "future equity" with the government in return for foreclosure bailout?

Maybe it would work for some people but I would never agree to it. It goes against the grain of most people who continue to upgrade their homes as they live in them. We have a home that has huge issues amounting to thousands of dollars of repair and finish. We have already depleted our savings repairing the worst of the structural issues and we are not doing anything more - even labor with materials we already have on hand - until I know we are in a permanent mod. And no, I am not willing to share any future equity in our home that results from our hard work and scrimping on other things so we can improve our home....no way!!!

All I want is a reduction in interest so I can afford to keep it...WAMU has made a ton of money off me already in the last ten plus years and CHASE got a phenomenal deal when it bought WAMU for pennies on the dollar so they should be more than willing to modify my loan since they own it.

[cliffdweller]

Hi Marie,
Yea...he says it was an old idea. I am with you. I would not agree to it either. But, as the author points out, many people would jump at the notion of staying in their homes for half the cost or more. Not the solution in my book. Tendency is to look to old "solutions" rather than creative new ones that they don't have.... once they put a stake in the ground and establish precedent, it is hard to turn back.

Am hoping you are right about Wamu/Chase being willing to modify - you and I are in exact same boat...tons of work/$$ on house, value unclear, lots of repair needed, Wamu-owned.

For now, I am with the idea of sending emails/letters to make our voices heard, problem visible..best we can do I think.

Oh Marie - meant to tell you - Prepaid legal provided very little info for $26/month...I pulled out what I needed to know, but even then, the lawyer was less informed than I was from the Internet.

To everyone:
Do not buy any Binding Arbitration claim you get from Chase regarding credit card debt. There is currently a move in Congress to ban this practice. The National Arbitration Forum was sued in July, 2009 and has been forced to cease and desist.

[Jillian118]

Originally Posted by MAXIE19

Jillian:

Curious, what did the imminent default dept say when they called you today. Anything meaningful that could give the rest of us hope.

HAHAHAAA!!! no. He called to tell me that oddly....they were missing some papers. If I had a dollar for everytime I heard that...I could afford to pay my mortgage!!

[Marie T]

Hi Cliffdweller -

I just need to get back on track here, get everything filled out again since I had an income change and see what happens.

I read another article online this morning (and now can't find it) that said that if the mortgage company thinks at all that you will pay, they will not modify. According to that article, since I am only two payments behind, they look at me as being able to catch up. Said something like their research shows that 2 out of 5 homeowners who are two payments behind can and will catch up. Think it was on the MSN site but I read so much online.

Kind of depressing as I'm thinking then I should have just let it go to three payments behind but scared to do that so not paying other bills so as not to let mortgage go 90 days late...really getting tired of this and just want a normal life again!

[shade]

Originally Posted by Chased around and around

The first quarter of this year 381,000 homes went into foreclosure in the US.

We all know the majority % of homes in default:

34% Arizona
33% Nevada
30% California
28% Florida

Banks have no idea what to do with all these defaults. There is no possible way they can possibly keep up with them. If you think about for a minute, how many banks are servicing all these loans, 9,10 maybe 11.

They are as behind in what to do as we are all behind in payments.

I will say for the most part the banks want their money, all of it. This is why they are doing nothing to remedy the problem. Could they do mods faster, sure but why, they are hoping the ecomnomy will turn around quickly and values will rise and they will make back all their principle amounts either from us or at auction.

Problem is reality, values will only go down as more and more homes default. 26% of defaults are now due to values that are underwater and we cannot refi. Nothing to do with employment status or lack of money coming into the household. Like I always have said, if the banks went across the boards 4% interest 30 year fixed, think for a minute how many of us would stay in our homes and how much money would be in your pocket to spend to pick up this economy.

I have seen it many times here in my area, banks do nothing to help the owner, property goes into forclosure, banks puts property on MLS for 35-40% of what is borrowed against that property.

Lets just wait a bit until the states start making the banks pay for the property taxes on all these empty properties. Here in CA property tax revenue down 37% due to foreclosures. When the state coffers come knocking you will see the banks falling over us to fix these loans and quickly...

I dont see why Chase would stall when Freddie or Fannie owns many of the loans here. Chase shouldnt give a crap about holding those up the govt is the one taking the loss not them.

[cliffdweller]

Leads us to the question -
Who is really calling the shots? The bank CEOs, don't think so.....the Gov't, no....an elite group of very rich people....probably. The whole thing is just way too mysterious.

[Marie T]

I do not get how they can legally stall with the people who agreed to the 3 month trial period....did they not tell all of these people what the permanent mod would be at the end of that? I have read on here that WAMU and/or CHASE did not sign paperwork so maybe they have an out?

The only thing I can think of is they are waiting to see if these folks financial situation gets better so they can renig on the mod......

[azdmsmith]

Keep in mind that after 5 years the modified interest rate begins to adjust and is based on the market interest rate on the day the modification becomes effective (not the trial period, the MOD). Every day they wait, interest rates change...hmmm delay, delay, delay and see if interest rates creep up???

[Marie T]

so it is the interest rate at the time the mod is finalized...not five years from now? I am so far from getting a mod finalized I did not know that is how it works but now that makes perfect sense. They are watching the interest rates and I guess if interest really starts skyrocketing and a bunch of people at the end of their trial mods get a "permanent" mod at that point, we will know that is what their strategy was!

[peggyinfl]

I'm in Fl, I refused Chase mod when I recieved it in April. I am still current on my mort. but a few months back I noticed on my statement the flagged it as being under a mod. I called Chase and had to fight to get it removed. Then I was told because I refused the mod I could never reapply, I was told when I refused it that I could. The guy I talk to was extremly rude.

My son is visiting from Japan and when he saw the prices of the homes in FL he started looking. He has put offers on a few homes here and was out bidded. The homes are going fast, multiple offers etc. The investors are coming in and buying up all these homes CASH. The news last night said home sales on the treasure coast have rised 18%.

If you have a mortgage and had PMI and the banks forclose, they collect the insurance (PMI), then they also get back the reserve money they put up when they gave you the oringinal mortgage. So they are making money on these homes that are foreclosed.

The banks know what they are doing.

[Chased around and around]

peggyinfl, I live in the Southern California and a few of the realtors I know tell me the same thing. Shorts sales and foreclosures are getting mutilple bids and even bidding wars were some properties have went up 10-15% over the asking price.

But all of these offers are not getting aproved by the banks holding the properties. One realtors just told me a cash offer that offered to one bank has not been approved after 5 months.

I have one condo in my complex same as my layout and sq. ft. on the market for three years. I actually looked at it when I purchased my condo. He started at 549K in '06, 399K '08 and now it's 324,900 right now. I am sure he took it on and off the market a few times in three years...

[Jillian118]

Well I didnt think mine would take this long as my servicer and my investor is wamu....

As far as the shortsales, my girlfriend is a realtor and she is getting the same runaround from the bank as we are as far as processing the short sale. One house on my street has been vacant for a while, they have multiple offers but cant get any straight answers from the bank, so there it sits...empty, then it got vandalized.

[peggyinfl]

Yes short sales take a long time but if the are already foreclosed, they are accepting offers in a day.
My son put an offer in late yesterday and was accepted today. This home is already banked owned. (fannie mae)

[Hodgini66]

Sliding scales, nomographs, actuarial tables, crystal balls, analysis paralysis and molasses....

Despite everyone of our cases being different, I believe it boils down to the same underlying issue: sharehder's equity.

WE own the banks.

WE don't want them to fail.

This is all going to take a long time to unravel and repair. The banks are also reluctant to do anything to settle because the house of cards' underpinnings will erode (shareholder equity).

Think for a second... What if these banks started reporting 30% losses on their balance sheets and contractions of retirement fund deposits? It would trigger another Wall Street sell-off.

The "trial" program is a pablum/placebo for a fear-based ailment.

Neither the banks nor the government want an overnight solution.

[Jillian118]

Well, they are selling the foreclosed homes for pennies on the dollar. Why not modify and keep all of that money? Which is better to continue to earn intrest on a $436k mortgage note or forclose and sell it for the $230k that chase.com says it is now worth?

[Chased around and around]

Jillian118, The banks really don't care, whatever losses they have they write off at the end of the year. We mean nothing to them. Do they want to make 150% of the original loan off of us after the loan amortize, you bet. But being the large company they are looses occur.

Hodgini, I want to tell everyone here without going into a political rant, WE own nothing, TARP has nothing to do with us, WE don't own the auto industry, insurance (AIG) or anything else. Once you pay your taxes, you have no say as to how the government wastes your money...

[Jillian118]

I think every company is concerned with losses. I work for a large company as well and we talk about that all the time. Minimizing losses and stemming the bleeding. Although Chase just posted a 2.1 billion dollar profit...so maybe your right...maybe they arent as concerned with the losses as they should be. Its all about the shareholders.

[Chased around and around]

But, does your company have the government right there to give you a 5% TARP loan as much as you want and payable back whenever you please?

When you have the government involved in the private sector, share holders, bond holders, creditors come last or are left out altogether. I don't see this happening to real companies across the US who actually produce something and care about America. The banks could careless, we are just another number on a piece of paper. No matter how bad our economy gets with housing, the banks will always rely on the government for a hand up...

[theputum]

We just completed our 3rd trial payment under the Obama MHA program in late July. I called a couple days later to Chase and they indicated, due to the backlog, that it may be some time for the final modification paperwork to be presented and I should continue making the adjusted payment. Sorry..no can do! My wife and I have decided that if they can't use their mouse to File--> Print and mail in 5.5 weeks before the next payment, then I'd like their job!

Another interesting twist..looks like our homeowner's insurance is due since we're on a monthly payment schedule. Wonder if I should blackmail Chase into getting the modification finalized or they can pay for the homeowner's insurance because I'm not paying anymore until the paperwork is in my hand. Seems like they think they can drag this process on for as long as they want to! Clearly, the homeowners need to
find some way to pressure them to move and complete the modification agreement.