I currently own a house with a FHA chase mortgage (taken out in 2010) with a non-spouse, who no longer lives at the property.
I was approved for a FHA-HAMP trial, and made 5 payments so far. After the first payment, the OTHER person on the load filed for Chapter 7 BX. My mod file was transferred over to someone else at Chase, who assured me the BX will not change anything with my modifcation.
After 3 trial payments, my Chase rep called me and said to quailify for the mod the OTHER person must reaffirm the mortgage in her BX. I informed her, and she filed the intent to reaffirm in her BX.
After 5 trial payments, I get a call from another rep at Chase stating my FHA-HAMP has been denied, as the BX made me ineligible for a FHA-HAMP. She stated OTHER person must have reaffirmed in BX, however Chase would not agree to reaffirm unless mortgage is current. The OTHER person's BX is just about over, probably will be discharged this week.
I've looked everywhere online, and it appears BX does not disqualify someone from FHA-HAMP. From http://www.justice.gov/ust/eo/public.../HAMP_FAQs.pdf :
12. Am I eligible for HAMP if I have received a chapter 7 bankruptcy discharge?
Yes, even if you have received a chapter 7 bankruptcy discharge, you are eligible for HAMP. If you did not reaffirm your mortgage debt, the following language must be inserted in the Home Affordable Modification Agreement:
"I was discharged in a chapter 7 bankruptcy proceeding subsequent to the execution of the Loan Documents. Based on this representation, Lender agrees that I will not have personal liability on the debt pursuant to this Agreement."
Since Chase says the OTHER person did not reaffirm (sign an agreement w/ Chase), then wouldn't they just need to insert that language? They said I can reapply for an in house mod, but it will not likely reduce my monthly payment by much as I'm currently at 5.0%.
Any ideas on what to do next? Their reason does not sound valid. I've been reassured this whole time by Chase everything was fine and now the final approval gets turned into a denial. I currently owe $310k and property is valued around $370k.
Thank you for your help in advance