Chase MOD approval. Tell me what you think??

[Bert C]

I posted this in another thread but, wanted to start this one exclusively and allow you to comment and give your thoughts on this MOD. Please read through the details and ask away and give your sincere thoughts. Thanks...

Ok so here is my story (condensed version of course). I started the MOD process back in April of this year. Wasn't getting anywhere and last week I decided to walk into a local Chase Homeownership Office I didnt even know existed here near me. I re-filled out the application the gentleman there presented me (he was very helpful BTW) and off it went through his computer online. So he say check back with me in 30 days or so but, really don't expect anything until 30 to 60 days.

I happened to get a call the next day not from him but, from the lady in the ERT for Chase that I had been in contact with for over a month prior to no avail. In fact, I told her I was surprised at her call since I had just the prior day walked into the Chase office and re-submitted all my paperwork. Well, she tells me she received an email from someone that is in the MOD department saying that they may have something for me by the end of this week (it was Monday when I spoke to her).

Well, I get a call a short while ago from the gentleman at the local Chase office and he say they have finalized my paperwork and then proceeds to give me the terms. before I get to those terms, let me say where I am presently...

30 years at 7.65
No Escrow
My taxes are $7900.00 yearly and Insurance is $1600.00 (I pay those outright)
My payment (PI) is $2,089.00
I'm 90 days behind about to go 120 in August.
$2900.00 late fees.

Well, here are the terms according to this gentleman...

Years 1 - 5 @ 3.25
Year 6 @ 4.25
Years 7 - 30 @ 5.625

They will include PITI.

Trial period 3 months $2500.00

My trial is to begin 8/1/09 but, he is sending the negotiator an email and getting clarification on this since it is already 7/30/09 today and the Fedex envelope is not here as you can imagine.

The gentleman at the Chase Homeownership office told me he was sending an email to the negotiator immediately to seek:

1) Clarification on the first Trial payment since the date is so close to today
2) Ask whether the new payment includes the "extra year" of reserves he says they typically do.
3) What happens if i do not accept these terms? Do they accept a counteroffer from me.

He said to call him back later today and he may know something then.

Here is my worry. The $2500.00 payment is much more than my payment now. From what I have read here on the board, there are many instances when the trial period ends and still no permanent MOD. Also, the issue with the "extra year" of escrow reserves. If this turns out to be tha case, Does your payment then go down after year one and adjust? If anyone here knows please inform me. This may be the deciding factor for me and the wife. If indeed it would then, I could see my payment drop around $650.00 each month which would place me under what I pay now ($2,089.00) and include the taxes and insurance! This would most likely be acceptable to us.

I appreciate you guys chiming in with your thoughts soon. Thanks for your support as usual.

Regards,

Bert

[Moe Bedard]

Hey Bert!

I think this is a good offer, but yes, some members have been given the shaft when it comes time to permanent mod time.

Here is my worry. The $2500.00 payment is much more than my payment now. From what I have read here on the board, there are many instances when the trial period ends and still no permanent MOD.

There are no guarantees, but there seems to be more instances of things working out in these type of arrangements. I have seen this time and time again over the last couple years where there was just a verbal arrangement or short term deal and it worked out and then also I have seen the opposite.

If you look at all the stories, there is no rhyme or reason to nay of this. The reoccurring theme is that the people who get loan mods are the fighters and the ones who get the best are the savviest at negotiating their case.

Also, the issue with the "extra year" of escrow reserves. If this turns out to be tha case, Does your payment then go down after year one and adjust?

I am not sure there. You would have to verify this with Chase. Maybe someone can chime in there. It seems if you make it through this trial period then you will be fine and to get an offer so quick is a bit unusual, but maybe they are stepping things up.

[Bert C]

Thanks Moe. Just a quick update. I spoke with the Chase rep here locally and although he doesn't have the exact details and he says those may be in the Trial Offer paperwork (I am his first trial offer customer!), he has been there in that position with Chase for 3 weeks only. What he told me was the Fedex package has left Chase and should arrive Monday or Tuesday. Once I get them to come into his office and sit down with him and he will go over the details and conditions with me. He did get clarification from someone from "Treasury" he said that mentioned I would have until the 31st of August to make the first payment though the paperwork says the 1st of August. He sent an email regarding what he mentioned appears as an escrow shortage which comes to $301.00 added to my payments. He is requesting they clarify exactly what that is since I have never had an escrow account with Chase. The amount seems odd since my taxes are $7,900.00 per years and insurance is around $1,600.00 per year. They did however pay my taxes for this year which I had not paid since November 08 when they came due. They paid those and the added interest which came to $400.00. A statement I received just yesterday shows they paid that on the 16th of this month and the statement shows them as an "escrow balance". I asked him if they place those in the end of the loan and he said that usually if it is more than just one year they place part of them there and the rest the incorporate into your payment.

So, as of right now I have plenty unanswered questions but, I'm hoping they will be answered next week,if not sooner.

[briknope]

What I think is that you didn't get a mod at all, sorry to say. I think you got strung along like many others here on this forum. My 3rd trial payment is due today, and I don't think I will pay it. Throwing money into a black hole with nothing concrete is what I feel as though I have been doing. That money could have been used for if and when I am forced out of my house.

[Bert C]

Hi Briknope, I appreciate your comments but, I would like for you to be a bit more specific with regard to why in your view I am not receiving a MOD at all? What exactly is it you see or don't see with the terms. I appreciate your ideas and thoughts on the matter and everyone else's thoughts for that matter. Thanks again.

BC

[Marie T]

I specifically asked when I met with the CHASE Homeownership office this week if they are making the trial mods permanent since I said I have been reading "on the internet", (did not give this site) that a lot of people are still waiting. He told me that sometimes it does take awhile so they are putting 4 months of payment coupons instead of just 3 ...he said it would make no sense not to convert to permanent after trial mod completed.

He told me my payment could actually go UP on trial mod since I have an interest only mortgage now, and I also pay my property taxes and insurance on my own. He said that trial mod does not necessarily have as low of interest as permanent mod would have. I said that is the stupidest thing I have ever heard of....if I can't afford my payment now, how am I going to afford if they make it more??? and why would they not make trial payment the same as permanent payment?? isn't it a trial to see that you can pay it??!!!

[nitag]

Bert, I'm not with Chase, I am with Litton, my mod is kinda the same - first 5 yrs at 2%, after 5th year interest will go up 1% a year and cap at 5.13%.. It's not a bad deal.. I'm currently at 6.75% - My payment went from 2580 to 1876 with taxes and ins now. So not a bad deal.

[kgeriak]

Does anyone have the executive number for Chase? I started a modification process with WAMU and got my second rejection letter from Chase stating because of an "incomplete Application". I have doen this two times since April and get the same response - no one will tell me what they are missing but that it is incomplete. Can anyone tell me who I can call to really stir something up since I have been on time with my payments and have asked them to help me before I get in trouble. I just don't understand what is taking so long!!!

[nitag]

Originally Posted by kgeriak

Does anyone have the executive number for Chase? I started a modification process with WAMU and got my second rejection letter from Chase stating because of an "incomplete Application". I have doen this two times since April and get the same response - no one will tell me what they are missing but that it is incomplete. Can anyone tell me who I can call to really stir something up since I have been on time with my payments and have asked them to help me before I get in trouble. I just don't understand what is taking so long!!!

executive team
1-800-242-7399

I actually called yesterday and let them have it..

[Bert C]

Thanks for responding niTag. I'm going to really go over the Fedex docs when they arrive and walk into the Chase local homeownership office with them. My main concern is the apparent lag everyone seems to be having from the time they complete the trial to the time they make the MOD permanent. I'm thinking it isn't a bad deal but, I need to clear up a few issues first with Chase. Primarily the added "escrow shortage" of $301.00 which I need to get a reply stating this will drop off after the shortage is covered. What is strange is I've never had an escrow account wqith them before and the only thing I can think of is the fact that they paid this years taxes for me which amounted to $8300.00 including accrued interest from Nov. 08. But, at this point I don't know since I haven't yet received the Fedex package that they claim left them yesterday. Hoping it arrives Monday for me to see what is in there. The guy at their local office did say that it reads MHA across the top. We'll see...

[cliffdweller]

Originally Posted by Marie T

He told me my payment could actually go UP on trial mod since I have an interest only mortgage now, and I also pay my property taxes and insurance on my own. He said that trial mod does not necessarily have as low of interest as permanent mod would have. I said that is the stupidest thing I have ever heard of....if I can't afford my payment now, how am I going to afford if they make it more??? and why would they not make trial payment the same as permanent payment?? isn't it a trial to see that you can pay it??!!!

Marie ~
My regular loan was 6.475 interest only at $2645/mo. My trial mod is $1760/mo interest only. They tell me my permanent will probably add in the taxes and insurance.

Does anyone know how many times you are able to do a loan mod? I thought it was only once, but maybe that is only for the OBAMA plan?

[Marie T]

Thanks CW.....maybe I can breathe a little now.....my regular payment is over $3,500 at 6.75% interest only now and I was thinking if they make it more than that, there's no way I can pay it! Did they let you know what your permanent mod payment and/or interest rate will be? The Chase Homeownership guy told me when I met with him that they would let me know going into the trial mod what my permanent mod payment would be.

From what I have read, I think you can re-do your mod if they make changes and that probably depends on what kind of mod you did. If it is the Obama plan and they come out with a new Obama plan that is better, you can probably re-do it.

I ran out of my prescription sleeping pills several days ago and I'm running on sleep deprivation which is bad so refilled today, so hard to function without a brain ...better things to scimp on!!

[Marie T]

Kgeriak....is there a CHASE Homeownership Center anywhere close to you? I am not impressed with everything about them but I have not run into the "missing paperwork" that seems to plague everyone.

[cliffdweller]

Marie,
No - the trial mod agreement from WaMu was very tentative...basically, pay this amount for 3 months and then we'll see. No clue to future payment or interest rate.
I called and tried to find out - no luck.
Bert C's deal was pretty good - if I could get something similar, could maybe make it.
Husband and I are both working two jobs right now...get the no sleep deal...really rough...and s...x - forget it! I am moderately encouraged today - the word does not seem to be IF permanent mods will occur, but when. It took them awhile to get their ducks in a row after the OBAMA plan came out in March, and I think that they have been working on a plan for the perms...well, that is what I am telling myself anyway.

[snapple candy]

Bert,
I assume your current terms are interest-only? Are they offering you the Obama plan? I am thinking not since they are offering you terms.

I was interest only (6.4%) too (taxes and insurance already escrowed) and they offered me a mod that was P&I with a payment the 1st year of only about a $100 month reduction, the 2nd year going above the current payment, then $300 over what I pay now. It was a 4.4, 5.4, 6.4 step up. I rejected it stating it was not a long term sustainable solution (need lower not higher payment) and demanded MHA program. They told me I could not get it. The sent me Notice of Sale. I knew I had fannie loan and demanded it. I am now finally on trial mod MHAP program and waiting to see final terms.

[briknope]

Bert C-
Its the trial period. Most people here have in fact been given a trial period. Yes I was promised a certain rate at the end of my trial period, but if I read the contract carefully, it is very very open ended. Apparently at the end of the trial period at least in my case everything will be reviewed. If you see here on this board, it doesn't really matter what they say on the phone they always have the option of not modifying at the end.

[Bert C]

Snapple. The Chase rep said the way it read in the notice he received was MHA. A 3 month trial period. The terms they offered is inclusive of my taxes and insurance. I haven't received the Fedex package, he said it would be Monday or Tuesday. At that time I will have more info. But, the terms he laid out were very specific. 3.25 years 1-5 then 4.25 year 6 and finally year 7-30 @ 5.65. Including my PITI. What I need to do is figure my DTI and see where this places me. He also mentioned to me it appeared there was an added $301.00 to the payment for what appears to be "escrow shortage". My concern is when and how this comes off the payment. They have paid my taxes for this year and my flood insurance. My homeowners insurance is already paid by me. I'll definately know more Monday.

[amyjeannine]

Bert C-

Congratulations on your offer. Please let us know what you find out on Monday about the specifics.

[Bert C]

Thanks Amy. I'll keep everyone posted after I receive the Fedex package.

Briknope, you are correct. But, what I have read many times in this forum is people are offered a trial period paying "X" amount. But no other detailes are given to them (no interest rates). In this case they say very specifically what the rates are going to be. That does not mean it is final. I for one, would not trust them 100%. But, it is reason for hope I think. I rather think positively at this point in the process than negatively. But, no, I am not naive and yes, very cautious. Thanks for your comments and suggestions. They are always welcome by me.

BC

[cliffdweller]

Bert,
Would you mind sharing what the debt/income ratio you submitted on this application was? Also, do you have a decent credit rating...or pretty trashed like the rest of us?

Thanks alot,
CW

[caldwellb02]

HI all. First time I'm on this thread. Were you all (those of you with trial mods) current on your payments, or did you have to default first? I would really like to know. I'm not in default, but I can't keep this up and am thinking of defaulting. I have been working with Chase for 7 months and have NEVER received any inkling of what kind of mod I could get.... I think they are stringing me along because I am paying still. What do you think?

[nitag]

I have been working with Chase for my parents since April. I am at the end of my rope with them. I agree with you, I think since my parents are current they won't help. I am going to up my calls this week and I called the Executive number on Thursday and really let them have it, did it do any good, I doubt it... Next step is going to be a Senior Law center here in Reno that might do it for them for free ( loan mod ) if that doesn't work I think we might try NACA..

[Bert C]

Cliff, my DTI was at 76%. If Chase comes through with their offering after the trial mod period then, it will be at 31%. Regarding my credit, it is trashed and with the 90 days late I have dragged out for the last few months, probably not going to get better for awhile. Unfortunately what discovered and what many hear have been saying seems to be true. Chase won't move on your mod until you are at risk of foreclosure. They don't seem to be very proactive, just reactive and slow at that. But, if I can get this mod it would go a long way towards improving financially.

[Bert C]

Cliff, sorry I gave you incorrect info. I was at 43% DTI before the Chase offer. The 43% is inclusive of PITI and HOA fees.

Bert

[cliffdweller]

Hi Bert,
Thanks...ugh...I think a lot of us are a lot higher than that. Mine was 91% before mod, is 75% after mod. To be clear, I'm talking all expenses including PITI & HOA divided by gross income.

My husband and I started working two jobs to get it down to about 60% if they
continue our current mod payment, but I just can't get it less than that and have
a life!

I guess I'm wondering if that is why they were so quick to
supply you with terms.