Just starting out....Should I even go through with it?

[debianni]

I faxed all my information over to Chase on July 2nd. Called the next day to confirm. They said they had it. Asked to wait 4 to 6 weeks before calling again. Called them yesterday at the MHA# and was told nothing yet. Try back in a month. Called today and found out I'm already in loss mitigation. The only reason I called was because I got a credit alert from Experian stating that Chase pulled my husband's and my credit.

I am really very leery about these trial mods I've been reading about. I am current and want to stay that way. My credit score is finally going up and I don't want to have late mortgage payments on my credit or any kiind of foreclosure notices if they put me on trial payments.

I'm hoping that by September they'll have their system updated as they have been telling everyone so that you know if you are even going to get a perm mod. I don't want to ruin my credit for a "possible" modification. Is it true that they have to tell you after the first trial payment if you're approved for a perm mod or not?

I'm only asking for the mod because my husband's salary went down and my ex-husband decided that his bills were more important to pay then his child support (which unfortunately is not court ordered, long story). I've read that some people's credit got hit for these trial payments and some did not. Anyone know what the reason could be? So many questions, so little answers.

[briknope]

I would say if you can truly make the payment then continue to do so. If you want to save your credit that is. If you want to keep the house, and make it more affordable then most probably you will have to sacrifice the credit score. My thought is, that good credit got me where I am now, and after this go around with the housing market makes me not want to loan money for anything for a while! The worst things on a credit report are bankruptcy or a foreclosure for sure. If you are in doubt of making mortgage payments now then look at it this way, you're credit score will be hit in the end one way or another. So, its up to you. It really sucks (not you personally) hearing about people on this board that are current on their mortgage and their biggest worry is their precious FICO score. This board is about people fighting to stay in their homes, and not ways to finagle the system to get a better deal from the bank. People here hiding money in other bank accounts blah blah.

[debianni]

I am current because I've cut back every possible bill I have. Honestly, I have about $50 in the bank after I pay all the bills and buy food. I AM struggling to make ends meet.

I'm worried about my credit score because I have a bankruptcy on there which is coming off in November. I haven't been over 600 for 7 years. So refinancing is out of the question.

So yes, I am trying to keep my home. I am struggling to put food on the table every day just to stay current. All I'm looking for is a little breathing room so I can pay my mortgage and other bills on time and maybe be able to take the kids out to a movie or dinner. That hasn't happened in a long time. I am "House Poor".

[shade]

If you go through the mod and it becomes permanent they will be required to fix your credit (if they mess it up during the trial period)

[briknope]

Originally Posted by debianni

I am current because I've cut back every possible bill I have. Honestly, I have about $50 in the bank after I pay all the bills and buy food. I AM struggling to make ends meet.

I'm worried about my credit score because I have a bankruptcy on there which is coming off in November. I haven't been over 600 for 7 years. So refinancing is out of the question.

So yes, I am trying to keep my home. I am struggling to put food on the table every day just to stay current. All I'm looking for is a little breathing room so I can pay my mortgage and other bills on time and maybe be able to take the kids out to a movie or dinner. That hasn't happened in a long time. I am "House Poor".

And what they will tell you is to keep up the good work at making ends meet especially your mortgage payment. Is there anything else we can do for you today?

[debianni]

Now with the current lack of child support, there is no way I'm going to be able to pay all my bills. That's what I'm trying to say. I'm going to stay current as long as possible, but I know where it's going to end.

I am worried about my credit being hit because there is the slightest possibility that I can refi after November when my bk comes off my credit report. That's if I have the money for an appraiser. Looking through the boards, it seems like I'll have some time to wait as they seem to be working really slow.

Bottom line 31% of my gross income is $1773.00. My current interest rate, after a mod last year when it was 8.5%, is 7.125%. I think they just gave us that rate because we were ready to adjust and were current. I seriously need something like 5% then maybe, just maybe, I could actually put some money aside for emergencies.

[briknope]

you must have equity in the home then?

[debianni]

Yes, I have equity in the house that I can't touch because I can't refinance. When we were applying for the mortgage in 2007, it was supposed to be at 6.5% which was affordable at that time, but right before settlement, my husband (fiance at the time) missed one credit card payment that cause his score to drop 40 points. We were a few days away from settlement, my house was already sold, so we had to take the ARM loan that was offered to us at the time.

Our original mortgage payment was $2182 per month at 8.5%, got a loan mod last December which took it down to $1944 a month at 7.125%. My husband has now lost $200 a month in his salary due to state required furlough days which is approximately the difference between my old mort and new one. So bacially back to square one.

[briknope]

See, I'm not trying to be an a-hole with my responses, but what I have learned is THE BANK IS NOT YOUR FRIEND. You have equity. They have something to take. The only "leverage" I have is the fact that Chase will LOSE 70 thousand dollars or more by not working with me. Many on here are 200k-300k upside down. Ask yourself this: Do you think they care about your financial hardship? If you don't make the payments, they can very well then take your home and sell it to cover their loss, pay off the realitors involved and then when all is said and done, give you a check for what remains. Not saying they will, but they can. Do not be fooled by their pleasant voices on the phone.

[debianni]

After waiting and calling and still not hearing anything from Chase, my husband and I decided to try to refi under FHA. Waiting final approval, but everything looks good. I should be out from under Chase by the 23rd if all goes according to plan. The interest rate they are offering is 5.25% which is much better than my current 7.125%. And my credit is in the 630's. Honestly, didn't think we could refi with scores like that.

Interestingly, yesterday I got a call from underwriting asking for updated paystubs and bank statements. Was not even offered a trial mod. The rep asked me why a payoff was asked for. I told her we were refinancing, but she still wants me to send in information in case refi falls through.

Should I still submit information or just keep my fingers crossed for my refi?

[diana0806]

that is great news. getting out from under chases thumb. i would send in paperwork to have a back up plan. you never know. that is my opinion. if i was in your situation i would do that. it is up to you. good luck. we will prevail!!!!!!!!!!!

[debianni]

I just thought it was interesting to get a call FROM Chase. I had stopped calling them because it didn't seem to be going anywhere and I know that there are people that have been waiting a lot longer than me for their trial mods, let alone permanent mods. As soon as they saw the activity on my account it seemed to start the ball rolling, but a little too late.

Like I said, nothing is definite until the papers are signed. So, I think I'll hold off until the 3rd week in October to make sure my refi goes through. Otherwise, I'll send Chase what they're asking for.