My approved loan mod

[jpsaun]

Yesterday we received out permanent modification paperwork. Chase is not reducing our interest rate at all -- still at 6.875% for 312 months.

They are rolling all past due amounts into the modded loan -- payment will be $1565.81 plus $131.55 (Escrow) for a total of $1697.36 starting Nov 1, 2010

Here are the terms:

Current Unpaid Balance $214,985
Interest $12,316
Escrow Advance $711
Less Credits $688
Adjusted Balance $227,325

They also want a
Initial Payment Contribution of $2494.93
Less Funds held in suspense $687.57
Total Due $1,807.36 by September 28, 2010

We were told 2 weeks ago by our relationship manager that there were no funds due until the first payment November 1. What should we do? Our payment is actually going to go up. We do not qualify for a HAMP mod since our mortgage is under the 31% requirement.

Thanks for any advice.

Jim

[Evan Bedard]

We were told 2 weeks ago by our relationship manager that there were no funds due until the first payment November 1. What should we do? Our payment is actually going to go up. We do not qualify for a HAMP mod since our mortgage is under the 31% requirement.

Welcome to the forum.

If the offer is unaffordable and you cannot manage the payments then there is no point in accepting it. You never want to accept something you cannot afford because you will most likely be in the same position after entering the agreement. The only thing you can really do is try to negotiate the offer to a lower rate or reapply for another in-house modification.

[drjustian]

I had Chase and went through of Mod process before they sold my file to IBM LBPS (a wholly owned IBM subsidiary). When I applied for HAMP we went through the "oh, we didn't get your documents" crap too. When we had a face to face meeting they told me first that I did not qualify for HAMP, then they said I did but they had their own 'special' program where the mortgage payment was calculated "according to HAMP criteria". My mortgage pmt was $1,950.00 including taxes and insurance and mortgage insurance. Chase said they would lower it to $1,650.00. My household income is $3,000.00 monthly, so they wanted 55% of my income for my mortgage pmt. I said, "well, you're telling me now that I qualify for HAMP, but you're giving a figure for your special bank program that is calculated "according to HAMP criteria". I said, "I don't want your special program, if I qualify for HAMP I want HAMP." I had already figured out what 31% of $3,000.00 was. Chase came back with $1,100.00 (37% of my income, still too high but what the heck) and put me on a 3 mo. 'trial period' modification. After two successful mos. they sold my file to IBM LBPS but did not tell them that I was in HAMP or even that I made my trial period pmts. I sent my 3rd mo. trial period into IBM LBPS which took it. When I sent IBM LBPS what I considered to be my first "permanent" mod pmt (my first pmt after the three trial period pmts), IBM LBPS sent it back because they said my pmt was supposed to be $1,950.00 and suggested that I apply for HAMP. LOL

[vivalarevolucion!!]

So now where are you with your loan mod?

[Maurice Bedard]

jpsaun- if your currnet payment is already at or below 31% of your income, it is considered an affordable payment. If you still cannot afford a payment at that level, it is generally considered that you are overextended on your other debt, and should examine ways to reduce that. Many would call it living beyond your means if you can't afford a 31% payment. If you have some medical issues or some hardship that is unusual, the banks can work with you.

One thing you could consider- If you do accept this offer, you will at least be current again, and the bank will have to go through the entire foreclosure process again if you are current and begin missing payments.

Another thing- if you accept, and make payments for a year or so, you might be able to refi. There is some rumors that current homeowners who are underwater will be allowed to refi at todays rates under some kind of new program if they are current on their payments. The current programs apply to fannie mae/freddie mac loans, and only to 125% ltv. Those both require that the borrower have made the last 12 payments on time. I would expect any new program to have some similar requirement but extend the maximum ltv. A program like that would stimulate the economy and maybe even protect the banks from losses from people who are willing to just walk away.

[rcamiller]

drjustian- So what are you going to do? Are you going to fax them your documents and try to get them honor your agreement or are you going to reapply for HAMP?

[drjustian]

What I am going to do is based upon what I have determined so far. First, Hamp is dead but no one will tell us, we'll have to come to that conclusion ourselves. But, that's okay because Obama has set it up so that banks cannot foreclose on our homes any more because the banks and investors can't find our notes and a mortgage without a note no longer exists. People who have already lost their home will either get the home back or damages from the bank. The banks thought they could screw with us with HAMP because it had all the indicia of fairness and compassion, but no enforcement teeth. The banks soon figured that out and instead of a HAMP modification they started shoving their own 'special bank modification' down people's throats with a take-it-or-leave- it attitude. In fact, some 'special bank modification' plans made people's mortgage payments higher than they were before they applied for HAMP. I have been asked about three different foreclosures this week and they were all in different places on the timeline. One foreclosure has a sheriff's sale coming up this Friday,but the bank cannot foreclose because they made a promise (outside of HAMP) to the borrower that she could make a smaller modified payment for four months, but after the second month they sent the payment back to her because it was too small. She kept her part of the bargain that if she kept her payments up and on time they would make it permanent. It was a personal, non-HAMP, agreement enforcable in court. But we're going to demand the right of the loan servicer to foreclose at all since they cannot provide information as to who holds the promissory note secured by the mortgage. The second foreclosure involved the MERS loan servicer which filed a forged, false and fraudulent affidavit in order to get the foreclosure. That affidavit claimed to assign both the mortgage and the note to another loan servicer, Chase. It was signed by a MERS 'vice president' and a MERS 'assistant secretary'. Affidavits signed by MERS vice presidents and assistant secretary's are fraudulent because these so-called MERS officers are not MERS employees (MERS has NO employees whatsoever), are not compensated by MERS in any way, are not supervised by MERS, have not been authorized by MERS to sign the affidavits and are, in fact, employees of the assignee, in this case they are employees of Chase. One of the technical aspects of the fraudulent affidavit is the MERS could not have assigned the mortgage 'note' to Chase because MERS is not a mortgage broker in ANY state and simply cannot own or hold any note so no 'note' was assigned to any entity by MERS, period. Judge's are not happy with MERS and it is very easy to prove that they have no right to foreclose anyone. The third foreclosure has already happended and the folks are in the last month of their 'redemption' period where they have a right to keep their home if they pay off the mortgage amount. In this case the lender was Option One Mortgage Corporation, a crooked ARM interest rate sub-prime lender. The mortgage was taken out in 2005. In 2008, H&R Block sold Option One (which it owned) assets to WL Ross & Co. LLC (owned outright by Wilbur Ross). Wilbur did not buy the shares of stock of the H&R Block subsidiary Option One, but only some of the assets. Wilbur then formed a NEW corporation in 2008 with the same name and then, in 2009 assigned the mortgage to another loan servicer. The problem here is that the NEW corporation Option One wasn't the same corporation that loaned the money nor was it actually assigned the mortgage in the first place from the OLD corporation, a completely separate entity. Therefore, the NEW Option One could not have legally assigned a mortgage that it didn't own, or prove that it owned. Also, the note has disappeared and judge's are learning something, 'do not foreclose on a mortgage unless there is an original note that can be torn up when paid'. No note, no foreclosure. The GOP and some Dem tried to get through a bill that would require judge's to accept all affidavit's of mortgage assignments. When it reached Obama's desk last week he vetoed it! HAMP is dead, but don't worry, the banks are so crooked and greedy that all the paperwork is screwed up, forged, fraudulent and false and unenforceable. Oh yeah, Second, my agreement with my 'loan servicer' Chase was assigned by them (ha,ha) to IBM LBPS. They are scared shitless and I dare them to try to foreclose on me. I asked them for a copy of my note and they printed it off their computer using either the DRI system or the iVault system. A copy is nice, but where's the original note. Fannie Mae says they own it, but they can't find it (because they're greedy too and sold it to who knows who). Ha, ha, ha. Don't worry, by the way, about the poor banks. Pensions did not invest in mortgage notes, only stupid investors. The banks will always be around, but the investors will lose everything and the home owners, will stay homeowners. Peace.