Chase Modification after Chapter 13 confirmation Florida

[CHANLY]

I have recently included my home in a Chapter 13 bankruptcy and the case was confirmed. I am wondering if it is too late to be considered for a loan modification and if there is any advice on this process, my home owner's insurance was cancelled and the property taxes are due in November. I currently owe around 300,000 but the value of the home is probably closer to 225,000 at this point. The house has been vacant since February on the advice of the Chapter 13 lawyer who later removed himself from my case. Anyone been through a similar situation who may have some advice?

[CHANLY]

I just spoke to someone at Chase and they told me that a modification to my loan would only bring me current then I would have to resume normal payment amount. I was hoping to have a change in terms that would lower the payment. Is this the right info???

[Moe Bedard]

Hi CHANLY,

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

That would depend on the type of loan that your have..........

What is the interest rate at?
Is the rate fixed or adjustable?
If adjustable when is it adjusting?
Are you paying interest only or PITI?

[CHANLY]

I have a fixed 7%, 30 year and I'm not paying interest only. My financial situation changed due to divorce and we included it in the bankruptcy since we could not sell for what is owed, it's lost at least 75,000 value.

[Moe Bedard]

With a fixed 7%, Chase is giving you information based on what the investor on your loan is willing to do........and unfortunately they are not doing principle reductions............I too wish they would.

[CHANLY]

Thanks for the info, at least I know I explored all of the possibilities.

[Moe Bedard]

Chase requires the surplus on the current mortgage payment........but the amounts vary according to the investor on the loan..............you might want to ask and see what the criteria is for the financials.........they also only count a certain amount for credit card debt too.......

[CHANLY]

Just an update on my situation. I decided to call the law office representing my foreclosure to see what the approx. final date would be, someone at that office brought up modifying the loan. I called her back w/ some financial info that she asked for i.e. income and partial list of expenses. I listed my income as around 5100/month. She said that I had too much of a deficit on income/expense b/c she used my original mortgage amount. I told her that I may have a change of income in the next few months and I decided to call back and submit the application then. I also asked approx what would be a reasonable payment that they may consider and she said more like 1800. I have noticed on other threads that someone mentioned them calculating a payment based on 35% of income, is that true? If so then that may be where she got the number she told me. Also, are they looking for a 150-250/month surplus based on a possible new payment amount or the old one, because it seems like if you could afford that then you wouldn't need the mod. I just got another letter from them stating my judgement hearing date has been set and it says they are "very active in pursuing alternatives to foreclosure" and to call Loss Mitigation but the number they give is at the law office?? Is the judgement hearing date the final date for the foreclosure?

[Moe Bedard]

you would need to ask the attorney handling the case the question about the judgement date.............
The financials for Chase are done on your current payment.....they are wanting to make sure that you can afford the house and expenses and not just the mortgage alone.

[CHANLY]

Since my last post I found out the modification was declined. I then called Chase to get some info on foreclosure dates and it was suggested that I reapply for a modification again, which I did in Dec. I then found out that it was declined again and I waited to hear from them on the foreclosure. I had a hearing on March 12 to propose a sale date. I called to find out the outcome and was told the hearing was cancelled b/c the plaintiff failed to give me 20 days notice of the hearing. Sooo, the lady at the law office asked me again if I had spoken to Chase about a modification b/c she said there were new programs from Obama and my loan is Fannie Mae. I looked online to see the criteria and realized that my previous attempts to modify could have possibly been denied b/c I was not living at the house (due to divorce, it has been vacant). I took a leap of faith and decided to move back in so that I may be considered for the new program. I called to reapply, gave the financial info and income based on my last tax return and the guy said that I did not qualify for being considered for mod. After a very lengthy discussion w/ him, where he told me they might consider if I put down $18,000, etc. I realized that when I called in before I hadn't listed a $325 car payment, b/c it's technically in my dad's name. When he took off that payment it went through. Very interesting considering he was playing around w/ my income, putting in as much as $1000 more per month and it didn't. I have not crunched the numbers to see what the income/debt ratio was but still am not clear on why taking that off made such a difference. I am now waiting and was told to call back in 2 weeks for an update but it could take as long as 90 days for a response. Even if you meet the criteria could you be declined for the new plan?? I'm not sure I get it. I'm also not clear on the 105% house value. does it have to be more or less than that??

[Moe Bedard]

With a loan backed by FannieMae, if you meet the criteria, they may begin with the trial modification of three payments and then re-evaluate your income/expenses to make sure that it hasn't changed since the start of the modification.

The 105% ltv is for the refinance, not the modification.


You can check the eligibility and FAQs here in this link..........
Making Home Affordable - Payment Reduction Estimator

[CHANLY]

I called today for an update from my 4-6-09 resubmit. I was told that Chase is now having Fannie Mae take all calls and given the number 877-419-6490 to call for update. I called and waited 45 minutes before speaking to someone. She said I qualify for the Obama plan and gave me my new payment, it was based on the wrong income amount so after I clarified expenses and the accurate income she said I still qualify. I will be getting Fedex package in 10-15 days and 1st payment will be due May 1, 3 month trial based on 31% of gross income then I will need to submit paperwork, hardship letter, etc. to get my final modification terms. It took quite a bit of conversation to get the income and therefore payment correct. She had the wrong numbers and then was using it as net, etc. She rep also said that the expenses are not considered but they do look at the property maintenance expenses, ie lawn care, etc. to make sure that you can afford the payment (??) Seems like a step in the right direction but I don't feel like I am totally 'out of the woods' yet until I get the final mod.

[Shelly17]

I had the same conversation with Chase yesterday.first payment is 5-1-09..did they say you had to Western Union your first payment?

[CHANLY]

Yes, they said I may have to send Western Union because I told her that May 1 is less than 2 weeks away and I couldn't see how I could get their package in 10-15 days AND get the payment back to them. She said if they didn't get the paperwork to me in time they would change the date but sure seems like a quick turn around time to me. I am also now wondering if I need to contact the Chapter 13 trustee for 'permission' to resume the loan? Anyone faced this?

[Blackcandt]

Hi Chanly
I am currently in a Chapter 13 as well. We were three months behind when we filed and they included those payments in our chapter 13 plan. I contacted Chase about the new modification and they said it looked as if we do qualify and that our attorney must first sign a release for them to negotiate the mod with us. I have called and called and still have not gotten the release faxed to her. Yesterday they stated that they mailed it to her and she should have it by Monday so I guess we will wait and see. I have also started the process with NACA. I can tell you that if our mod is approved our plan payment will change and the trustee has to agree to the mod as well, which our attorney said would not be a problem. Please keep us posted.

[CHANLY]

Thanks for the input Blackcandt. I included my house in the Chapter 13 and did not realize I could modify the terms. As I said earlier, I no longer have a lawyer so I'm on my own now! I figured the trustee would agree, my new payment is only about $100 more than my rent has been. My neighbor is in a similar situation with a Chapter 7 and cannot get cooperation from Citibank's lawyer for the release. Best of luck to you, hang in there!

[CHANLY]

Still waiting on the Fedex package I was promised on 4/17. I faxed my rep on 4/29 and then left a voicemail on 5/4 to let her know that I missed the May 1 payment because I don't have the packet, no info on where to send, etc. I have not gotten a return call, her voicemail says do not leave more than one message or it will cause further delay. Today I called the number but did not dial in her extension. The guy I talked to asked me some of the same questions, I told him that I was already approved, just checking on status of packet, etc. Wanted to make sure it didn't look like I wasn't following through on my end. He said that the original lady did put in the system for forbearance payments but 'did not set it up' He changed my payment due date to June 1 and assured me that I would get the paperwork. He also put a hold on the foreclosure (thought that was already done!) So still waiting, hope this guy knows what he's talking about.

[smit5454]

Same here. Promised week after week the "packet will be sent via Fed-Ex", call back if yu don;t have it by ......, And then Groundhog Day starts. I can;t keep waiting on the phone anymore for 2 hours to get the same story. I ask if they can give me the person who has it, they say "no", I ask if I can get the tracking number once they send it, they say "no". I ask if they can give me an idea of when I should receive it, they say "well, you should have it by.........." and another week goes on. My main mortgage payment was due May 1, but I have not paid it yet. I guarantee anyone in here that if I make my normal payment, the packet requesting another payment will show up 5 minutes later. That's just the way my life is right now. Now I will end up paying a late fee of $150 for not getting my main payment in on time. No matter what , I will have to have it in by 30 days so the credit agency does not get a call from Chase. I have not idea what I should do. YES, I CALLED THE EXECUTIVE TEAM. I spoke to a nice lady last week and she indicated I would receive a call within a week. I have not gotten one yet. Any feedback from anybody would be appreciated on what to do about the mortgage payments.

[CHANLY]

My situation is a little different because of the bankruptcy. I haven't paid the mortgage since Jan 2008 and my credit is already shot. My concern was more that it would say I missed the trial payment. Otherwise, I can sit tight as long as they want me to. I thought that if you did the obama mod they couldn't charge the late fees? not sure though.

[CHANLY]

Yesterday I got a Fedex packet at my PO Box (I was expecting it to come to the home address) from the Inwood Road, CT address which has a "Making Home Affordable" logo on the coverletter. It says I "may qualify for a modification workout plan." It asks for hardship affidavit, financial info and gives me trial payments starting June 1. Great, except that the payment is $2152 and the person who was supposedly sending me this packet quoted a payment of $1461.70 which is 31% of gross. I immediately called the number where I was given the lower payment and explained the situation to a guy named Byron. They said that their packet had not been sent out yet, waiting for approval, of course when I spoke to them the previous time they said it was approved. They advised I call a number for the people who are handling my loan (it's not them??) which matched the number on the packet. When I spoke to Ryan at that number he basically said that was the plan they were offering and that the 1400 payment must have been a different program. I pointed out to him that his packet specifically states MHA and that according to those guidelines my payment was set at 31% which 2152 is not even close to. Once I started spewing out specific numbers he told me that he would 'escalate' this to his supervisor and let them know that I could not make the payment because I felt it was too much. I told him this must have been a typo, I don't even know where they got the numbers to calculate that payment. I asked him if he could note what my actual income is and he said that was done in a different department. I asked him what to do about the June 1 payment date and he said to disregard that packet altogether. Back to square one!! Now I'm nervous again, what is going on here?? I think this packet was a generic offer sent because I am on the list for foreclosure maybe but how they got the calculations is a mystery.

[diana0806]

Hey chanly, you might of gotten a forebearance from them not obama plan. That is what they sent me. I am dealing with a supervisor in ohio and he said alot of mistakes going out in california because they are overwhelmed( i do not care). No one in this company is on same page. I am waiting for my new papers for obama plan. Hang in there. Enjoy your holiday weekend with your family. Start up fight on tuesday. We will prevail!!!!!!

[snapple candy]

Yes, it seems chase doing this to alot of people, giving them forbearance and not Obama trial period. Ya know I have been hearing this business of escalating this file for months from Chase/WAMU supervisors but somehow I dont see anything being escalated at all. I think its just a way to keep you hanging on...while they buy more time. Supposidly my file has been escalated AGAIN and assigned to a new negotiator who is evaluating me for Obama plan. Someone made mention that those already in foreclosure getting priority. DOnt know if that is true but I was served Notice of Sale April 15 and they are finally getting around to looking at the paperwork. I know 4-6 weeks not bad in the big scheme of things, but in June I will hit the 1 year mark for trying to get a modification. You all hang in there too. (or hang on for the ride)

[CHANLY]

Today I came home to a note stuck on my door that says "important please call homeowners assistance" I called and the number was the regular Chase number. This lady said she could see that my payments were supposed to be the 1400 and asked the number on the packet i got. Turns out it is from the bankruptcy department. She says I should wait and see if the right packet comes this week and if not call them back. The packet I got was definitely the Obama plan, at least I think so, it says Making HOme Affordable across the top and has a TARP logo.

[CHANLY]

Called today for update, still no packet, 1st payment due 6/1. I was told that it was set up on 5/23 (my call was 5/20) and pre-approved but is now waiting on analyst to approve and then the packet will be mailed. I asked what is being approved and was told that they were verifying information and making sure it fits the guidelines. I have never sent any information, only verbals so I guess they are making sure that the payment amount is set up right according the my verbal financial info?? She did not change the due date and said there is a grace period taken into consideration because I have not gotten the papers and also that the first payment will need to be western unioned.

[CHANLY]

Still never received packet so I spent about 3 1/2 hours getting the run around today. When I called in the system showed my payment amount for the trial period at the amount listed on the 'wrong' packet I got. That amount is over 45% of my gross. I have been told every story there is today from different departments at Chase, one guy said that my debt couldn't be over 69% of income, not including mortgage payment, when I pointed out is isn't he decided to transfer me to a foreclosure department. After an extended hold with that department they took my number to call me back. I got a call saying that they were sending out a new packet, to be received in 10-15 days, that I needed to send payment with certified funds (no mention of Western Union this time) and the payment due date is 7/1 but they would take into account that I am getting the packet after that date, (why don't they just set the date realistically, then they wouldn't have so many calls to take from frustrated homeowner's who have not received the paperwork!!) So I am waiting again, just grateful that they corrected the payment amount, at one point earlier in my calls I was told I had to make the higher payment which is 700 more than it should be and it would be correced when I actually got modified, yeah right!