Chase 2nd Perm Mod Terms... NO WAY!

**Freshtone** · 02-08-2010, 11:11 PM

Still no final mod on my 1st (private investor). Made 7 MHA trial payments.
The 2nd owned by Chase had me on a in house "trial" for the last 10 months. Woke up new years day to find that i could no longer see my 2nd account online. Called Chase and they said they had "written it off"... no warning every month they said keep making trial payment, we are weaitng for the 1st final terms and then we match those... its our "Business as usual" plan... etc. I raised hell when they told me the loan was charged off to collections, and they retrieved it somehow... it appeared back online and they said it was now going to underwriting for final approval as they no longer needed to wait for the 1st to be finalized to offer terms on the 2nd. ("new program") Im thinking... ok? lets see what happens now...

Today I get a fedex... its a permanent offer on the 2nd. YOUR NOT GOING TO BELIEVE THIS!!!!!

Original terms:
30yr
Loan amount $80,000
7.25%
P&I payment $540
$12000 Balloon payment after 15 years.
Balance - $75,000

Modified terms:
40yrs
5.25%
New Principle amount $80,500
10 years interest only payment $350
30 years P&I payment $440

ARE THEY CRAZY????!!!!!!!!!

I have already paid $32,000 in P&I against the original loan amount of $80,000... now they want $42,000 in interest ONLY over the next 10 years then the P&I starts, another $158,000 over 30 years... loan matures in 2050!!! Not only will I be too OLD to care at this point, I will have paid $232,000 for a $80,000 loan... I dont think so.

How does this help me? It does not it only helps CHASE!

Thinking of letting 2nd go back to collections... can the 2nd foreclose if I agree to the 1st terms (if they ever come) and do not pay on the 2nd? This was a purchase money loan.

**Evan Bedard** · 02-09-2010, 06:36 AM

Thinking of letting 2nd go back to collections... can the 2nd foreclose if I agree to the 1st terms (if they ever come) and do not pay on the 2nd? This was a purchase money loan.

Freshtone- Yes the 2nd mortgage holder does have the right to foreclose on your property. But if your home is underwater and is only worth about your 1st loans balance, the chances of the 2nd foreclosing are very unlikely because they will get little or nothing from the sale.. Vice-versa if it is not underwater, the chances of them pushing foreclosure will be much greater.

**Freshtone** · 02-09-2010, 01:47 PM

Evan thanks for the reply... if the 2nd forecloses what happens? Do they sell house at auction? What happens to 1st?

**Evan Bedard** · 02-09-2010, 03:57 PM

Well the 1st mortgage holder will collect their part of the proceeds first, and whatever is left over after the 1st has been repaid will go to the 2nd..

**Freshtone** · 02-09-2010, 04:16 PM

The 2nd is not likely to proceed with forclosure in this senario correct?

**Evan Bedard** · 02-09-2010, 04:28 PM

Well it depends, what is your 1st mortgage balance and how much is the home currently worth? If your home is worth much more than your 1st mortgage balance than the chances of the second foreclosing are much higher..