To the point. We had a First and Second mortgage with Chase that was a few months late. The 1st had a payment of 2169.55 with a principal balance of about 337,734.00.he 2nd payment was 458.41 with a balance of about 82,695.35. My wife and I contacted Chase in early 2010 and asked for help. We were eventually in July 2010 approved for a modification. We endured a TPP (Trial Period Plan) of three payments at 2,230.93 (September 2010 through November 2010) successfully, which led to an approval of a permanent modification. Keep in mind that we asked for help because our income had decreased and we were struggling a bit to make our payments, but we were not in foreclosure and were behind maybe 120 days max when all of this happened. We needed a lower payment. Our permanent modification is structured as such:
The modified principal balance of the Note will include all amounts and arrearages that will be past due (excluding unpaid late charges) and may include ampounts towards taxes, insurance, or other assessments. The New principal balance of my Note is $332,719.66 (the "New Principal Balance").
The Interest Bearing Principal Balance will re-amortize over 378 months to a remaining scheduled balance on the Maturity Date of 126,344.85 (the "Balloon Payment"), which is part of the interest bearing Principal Balance. Payment is 1,988.48, an amount sufficient to amortize the New Principal Balance to the remaining Balloon Payment over 301 months.
Fast forward, while applying for credit elsewhere, we dicscover that the old 2nd is being reported on our credit as CURRENTLY delinquent! Yet the new principal is reported current. Once the new permanent modification was in place, Chase began sending us the payment statement for ONE loan at the forementioned 1988.48 plus escrow. We thought the balloon payment was the second loan being put on the back end of the modification. And if that is so, it seems incorrect to report it as continuously late! We inquired to Chase and the 'research department' sent us a letter stating Our records show that this is an active account and your account is still due for the April 2010 payment. We cannot make any changes to your credit profile until we receive your payments. During the modification trial period, we may continue to report your loan as delinquent to credit bureaus even if you make your trial payments on time. However, after your loan is modified, we will report the loan as delinqquent only if the modified payment is not received on time.
WTH? They answered this inquiry as if we were STILL in the TPP! So we call and some smart-ass says the second was charged off and we'll be getting cals about it? Really? When? We were never informed of such a thing! NOONE has written, called, sued us, no collection efforts....nothing! Did the wires get crossed somewhere? They ARE getting the money for the old second on the back end....right? When was there a judgement filed to court (it doesnt exist)? AND, if it's mysteriously charged off with ZERO court trails or notifications AND no mention of such during the modification process.....how did you conjur up the huge balloon payment that happens to nearly eaqual the old second. AND, now the loan is transfered to Ocwen....and their research department says no second loan was transfered or attached to the new loan number with them. We simply want the old second to be removed from our credit as CURRENTLY delinquent as you read this. Suggestions? Advice? Is this weird? Legal?