Chase 1st and 2nd

edlax1 · 02-25-2009, 10:26 AM

Hi Guys,

This is my first post, I have a interest only 1st at 5.37 5 year ARM 424,000 set to adjust May 2010 and a interest only second at 7.99 50,000 balloon due 2010. I have a good job and dont think I would qualify for the 31% income loan because I make to much. My townhouse was purchased for 525,000 in 2005 and is now worth approx 450,000. I have put over 50,000 in improvments, new kitchen,flooring roof ect. Do you think I would qualify for the new 105% refi? not sure if the appraisal would be high enough. Any suggestions??

Thank you,

Ed

Moe Bedard · 02-25-2009, 01:15 PM

Hi Ed,

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

The refinance program is limited to the loans backed by FannieMae and FreddieMac..............your loan amount on your first may be too high to be a conforming conventional loan.............the cap was 417k back then............and had only been raised in certain areas in 2008.

http://www.treas.gov/initiatives/ees...ConsumerQA.pdf

edlax1 · 02-25-2009, 01:36 PM

Hi ***,

Thank you for your response. I thought in California in 2009 the cap is 625,500 maybe that is not for Freddie and Fannie...any other options?

Ed

Moe Bedard · 02-25-2009, 01:43 PM

There would not be many options if you are looking for a principal reduction for a modification............
The modification given is up to the investor on the loan and most have guidelines of what they are willing to do..............
at 5.37% interest only.........that is a pretty low payment...............a modification might not be able to lower the payment more than that and..............if they amortize it and include escrows, it can actually raise the payment.

and as you had stated...........you are not in a hardship situation.........

you can try contacting Chase and see if there are any options on your loan available for modifications........
try the.........
Early Loss Mitigation Dept.
1-866-665-7629

HopingtoFind · 02-25-2009, 01:55 PM

Quote:

Originally Posted by edlax1

Hi ***,

Thank you for your response. I thought in California in 2009 the cap is 625,500 maybe that is not for Freddie and Fannie...any other options?

Ed

Yes, California conforming is capped at 625,500 for 2009, but what matters really is what the conforming was at the time of your purchase in 2005... because in 2005 I believe it was $417K and if that is the case you're probably not with Fannie or Freddie, you might want to double check who your investor is.

edlax1 · 02-26-2009, 10:27 AM

Hi HopingtoFind,

You are correct it is a jumbo taken out in 2005. It is to bad There is not much I can do being current in my load and really just wanting a refi with the security of a fixed now that the value of the home has dropped so much...cant move...cant refi...My financial advisor want me to pay a lawyer team $2500 fully refundable to review my loan and work with my lender. Worth it or do it myself?

Thanks again for all the advise you guys are great I am on here every day reading the stories.

Ed

snapple candy · 02-26-2009, 11:48 AM

Ed,
I have been working with WAMU now Chase (for 9mths) and have a 10 yr fixed interest only at 6.75%. We (loan negotiator) have talked about just reducing interest rate permanently on interest-only as well as now 30 year fixed at 4.75%, even starting at 2.75% the first yr., 3.75% the 2nd ending at 4.75% the 3rd yr. Converting to a fixed rate will raise my payment and apply monies to principal on a home that has no value or doesnt exist and will stretch beyond where I can go. I just want the interest lowered on the loans I have and having some difficulty myself achieving it. I am in a hardship situation and loan is Freddie mac investors so I am told. My HELOC floats with prime which is OK but there is no equity left. I hear some lenders willing to take 10 cents on the dollar on these seconds. You might want to consider making them an offer and see where it goes. I am underwater about as much as you but need a lower payment due to lower income. The keep changing the terms and being wishy washy. I have talked to a few attorneys and home credit counselors and they havent been much help in general.I am doing it on my own for now but filed complaints with FTC and Comptroller for their (WAMU/Chase) deceptive practices. I do not know how effective I will be in the end. You might want to consider using NACA.org first before you shell out the bucks for attorneys.I will be going to NACA next and in addition to what I am doing and I feel the last stop in the road for me since I cannot afford to retain attorney.

HopingtoFind · 02-26-2009, 04:06 PM

Quote:

Originally Posted by edlax1

Hi HopingtoFind,

You are correct it is a jumbo taken out in 2005. It is to bad There is not much I can do being current in my load and really just wanting a refi with the security of a fixed now that the value of the home has dropped so much...cant move...cant refi...My financial advisor want me to pay a lawyer team $2500 fully refundable to review my loan and work with my lender. Worth it or do it myself?

Thanks again for all the advise you guys are great I am on here every day reading the stories.

Ed

You can still try and modify... Chase is better then other lenders as far as trying to work with people to modify. I would at least give them a call and get the process started. I was able to do it myself and I was also current and this was on a rental property.