Chase Modification Trial Period

[figgy]

Our Chase modification trial period starts next month. We will make adjustable payments in May, June and July of $1000 less than our current payment. According to Chase our loan will not be paid as agreed which will result in a soft hit on our credit report. Chase will not provide any details as to what our new loan will look at after we make the three months payments. Has anyone gone through this process and what did the new loan look like with Chase?

[Cat Damiano]

Hi figgy,


Welcome to the forum and thank you for joining...........

Does the trial modification docs say HAMP on them? If so, then the modified payment should be within 31 percent of your gross income. Each permanent modification will look different due to the fact of the waterfall steps and what exactly it took to get your loan down to that 31 percent.

These are the steps in order of how they are applied to the permanent modification if it is HAMP;

Step 1: Capitalization

In the first step, the servicer capitalizes accrued interest, out-of-pocket escrow advances to third parties, and any required escrow advances that will be paid to third parties by the servicer during the TPP.

Step 2: Interest Rate Reduction

In the second step, the servicer reduces the starting interest rate in increments of 0.125 percent to get as close as possible to the target monthly mortgage payment ratio. The interest rate floor is 2.0 percent. The initial interest rate would be fixed for the first five years then increase by 1 percent in year 6 and another 1 percent in year 7. For the remainder of the term the rate will be fixed at the prime market rate at the inception of the permanent loan modification.

Step 3: Term Extension

If necessary, in the third step the servicer extends the term and re-amortizes the mortgage loan by up to 480 months from the Modification Effective Date to achieve the target monthly mortgage payment ratio.

Step 4: Principal Forbearance

If necessary, the servicer will provide for principal forbearance to achieve the target monthly mortgage payment ratio. The principal forbearance amount is non-interest bearing and non-amortizing.

The amount of principal forbearance will result in a balloon payment fully due and payable upon the earliest of the borrower’s transfer of the property, payoff of the interest bearing UPB, or at maturity of the mortgage loan.

There is no requirement to forgive principal under HAMP.

[Chased around and around]

figgy, This is my second mod with chase on the 1st loan in less than 12 months. This second time around, they were on top of it, they treated me very well. They did the same for us, they dropped our trial payment $1000.00 lower than our monthly payment.

We just rec'd the final mod this month, the payment went up $14.00, yup only $14.00 higher than the trial payments. The first time the permanent mod came through, chase increased the payment close to $900.00 over the 4 trial payments.

This time around we made exactly 3 trial payments, the following month we had the final in our hands. Very happy this time around and the payments are very affordable. This time they also added insurance to the monthly payment. Dropped our interest from 6.37% to 4.5%, but did extend the loan another 10 years...

[Cat Damiano]

Chase around,


This sounds like a Fannie Mae mod through Chase, was this an inhouse modification?

[Chased around and around]

Cat, First time around it was a in-house, second time CHAMP...

[Cat Damiano]

Which is the Chase inhouse program.

[Chased around and around]

Cat, Yeah I'm the dummy, both mods were CHAMPs...

[Cat Damiano]

You aren't a dummy, I am just trying to find out if figgy's trial mod is a HAMP or inhouse modification. So the steps I posted pertain to HAMP only.

[donnac]

figgy when your account went to the underwriter how long from that period until you rec'd an answer about your modification. My account is with the underwriter for 6weeks now I get a courtesy call every week from the rep to give me the same update still with underwriter. I am so stressed waiting everytime I see that number come up on my caller id my stomach just gets sick.

[peprluvr]

hello everyone
i too recvd my chase in house modification trial period and will begin in may. we have been at this for over a year and a half!! at first we dealt with people in az...paperwork was always getting lots etc. etc. etc. then we were denied due to missing paperwork ? we then reapplied and had a customer assistance specialist here in ny.the second time around the process was much smoother. it did seem like it took forever !! my trial period is worded that after all payments are made on time, our mortgage will be permanently modified. i have heard many nightmare stories that after the trial period people were still denied ?? is that even legal if it is worded "your mortgage will be permanently modified" ? that is always in the back of my mind and im still nervous as heck! our trial payments are about $700 month less which is something we can afford ! ill keep evryone posted.

[Chased around and around]

donnac, peprluvr, I have to say that this time around on the mod, it was smooth sailing. chase kept in touch with me very 10 days or so. I faxed in the 12-13 pages of paperwork without bank statements, I thought that was odd, but not going to rock any boats.

I had no idea that this time we would be happy with the outcome. I am sure they are following new guidelines are things are gong smoothly.

So hang in there, we made exactaly 3 trial payments and the forth month we had the permanent mod...

[Cat Damiano]

Hi peprluvr,



Welcome to the forum and thank you for joining.......


The horror stories are mostly from when HAMP first rolled out and servicers didn't know how to handle the volume. The process is much more streamline now and the permanent modification docs are drawn up shortly after the third trial payment is made. The nice thing about Chase is that you can track this information in your online account under the loan modification tab.

[Chased around and around]

I always pay early on the trials, usually about mid month. This time around I mailed in my 3rd trial payment mid month, chase deducted the amount from my checking account 4 days later. About 7-8 days after that transaction, I called my chase rep to see what was happening with the mod. I was informed that the perm mod was on its way and this was 3-4 days before the end of the 3rd month in the trial period.

About 1 week shy of starting the fourth month, I had perm docs signed, notorized and in chase's hands. chase's website had my account adjusted to the new mod within 10 days after they rec'd the signed docs from us.

Funny, I was just notified that chase made an error in our escrow, now our monthly payment will be $6.00 cheaper, hey 6 bucks is 6 bucks...

[debofred]

I just received a letter from a Customer Assistance Specialist --- does anyone know what the difference is between CSR? Thanks.

[Chased around and around]

I just received a letter from a Customer Assistance Specialist --- does anyone know what the difference is between CSR? Thanks.

Yes your CSR will be your contact during the trial period. I did have three different CSRs the first month before I started my trial, but once the trial began, I had the same rep to the end. She kept in touch with me every 10 days or so...