Chase 2nd payoff

[Timmy19]

I am working on a settlement pay off with Chase for my second. I am wondering what department one would efficiently deal with. I spoke with Matt from Chase's Default and Collections department in Phoenix, Arizona, two days ago. Does this department have the authority to accept or deny pay off settlements?

If anyone knows what department at Chase has the authority to take care of settlements I would appreciate any information very much.

For those who are not familiar with settlements of seconds, here is an excerpt from a link to a helpful article.

What About Secondary Mortgage Holders?

Treasury recently announced a program to deal with second
liens. The Second Lien Program is intended to work
with the HMP and provides two alternatives for second lien
holders—accept a modification of the loan or receive a payment
in exchange for release of the lien:
•

Modification Option: The interest rate must be reduced
to 1% for amortizing loans and 2% for interestonly
loans. After five years, the interest rate on the second
lien will step up to the then current interest rate on
the modified first mortgage, with the same interest rate
cap as on the first lien. Treasury will share in the cost of
the interest reduction. The loan term must be extended
to match the term on the modified first mortgage. Also,
there must be principal forbearance in the same proportion
as any done on the first lien.
• Payment Option: Lenders and investors can alternatively
extinguish the second lien in exchange for payment
based on a program formula. For loans that are
more than 180 days past due, the lender or investor will
be paid 3 cents per dollar of unpaid principal balance
(UPB) extinguished. For loans that are less than 180 days
past due, a higher range of payments are allowed depending
upon the second lien’s LTV and the borrower’s
back-end DTI, ranging from 4 cents per dollar of UPB
extinguished for a second lien with greater than 140%
LTV and 55% DTI to 12 cents per dollar of UPB extinguished
for a second lien with less than 110% LTV and

55% DTI.

[davephx]

Timmy

I hate to tell you this but this is the great sounding 2MP program.

BUT there are NO (of few) participants. It is voluntary. And 4-12cents on the dollar is not worth the participants offering it. They would have to probably hire more staff, redo their computer systems etc just like they had to do for HAMP and they can't even handle all the HAMP mods to approve or not 1st in a timely manner. Six months seems to be the common trial period.

A month or so ago news that Treasury was negotiating with major sevicers/investors in 2nds but the incentive is so long no one participates. Probably have to get more money from Congress (good luck) to make it work.

There is one report on this forum that supposedly somone got a 2MP modification but it seems suspect that it was an internal mod not 2MP. And no one else reports any participation.

The Congressional Oversight reports talks about the need to modify seconds. It is too bad this great for us 2MP program appears to still have no participants.

There are some internal 2 mods but they seem rare.

[Timmy19]

davephx, on the bottom of the page that I quoted it says that the following list of servicers are participating...... and Chase is listed among other servicers. Following the link takes me to the Financialstability.gov website.

I am all new to this but my opinion is that if these banks sign a contract and that is what we the people see and read, then we need to hold them accountable. Chase's advertisements on TV sound so consumer friendly and nice. If the truth is that their name is just on paper and does not follow with action when it comes down to it, then I will do everything to let them know what I expect. If their actions do not follow their words or what they sign on paper with the government then I will act. I do see that when I talk to people about what the mortgage holders are doing that it affects them and that I am counteractive to their advertisements on TV. Each voice does matter. I have experienced in my life that it is the whispers not the shouts that are most effective. Even more powerful than our voices are our actions. We can talk and write and complain until the sky turns green but it does not affect the banks. I stopped using any credit card since I began all of this. I wonder what would happen if we all stopped using our credit cards or only use them to a minimum no matter what bank it is. Every person that could but chooses not to use a credit card will send a message. After all, what would the banks (or investors) be without people who use them?

I am aware that some people argue that when I signed for the loan that I also signed a contract and that I should be held accountable for it. They are right. I signed a contract based on the information that I was given. I was told (by the people who made money by me signing the contract) that I would be able to refinance when the housing market would go down from its overinflation. And that is all that I am fighting for. I do feel accountable for making my mortgage payments but unfortunately without being delinquent it is almost impossible to work on a refinance or modification with the banks.

I discussed with lawyers their success of achieving payoff settlements a long time ago and I know from their experience that it is possible.

It would help me though to know what Chase department can make the decision to settle so I know who to believe. I have heard too many lies.

[davephx]

Timmy19 - I find what you quoted on various pages but for the life of me I can't find any "following list of servicers participating" that would be interesting. Do you have the link to where it says that.

Did some searches on Financialstability.gov but I just kind anything that has a list or participants in 2MP. We would love to find that list.

Chase could do their own 2nd it is just rare to get 2nds modified

[Timmy19]

Davephx,

I do not know if this refers to 2MP but here is the article that I quoted above. Unfortunatley I did not bookmark the site where I found the article. I only saved it on my computer since it was a pdf file.

NCLC REPORTS Bankruptcy and Foreclosures Edition Volume 27 March/April 2009

Developments and Ideas For the Practice of Consumer Law

Below is the footnote that mentions the link to the participating servicers.

1 A copy of the Servicer Participation Agreement can be obtained on the

HMP’s administrative website for servicers at: www.hmpadmin.com.
2 Copies of executed agreements with participating servicers can be obtained
at: FinancialStability.gov | U.S. Department of the Treasury.

[davephx]

Originally Posted by Timmy19

Davephx, 2 Copies of executed agreements with participating servicers can be obtained

at: FinancialStability.gov | U.S. Department of the Treasury.

Yes that is the list for Making Home Affordable Program which is both HAMP and HARP.

The 2MP program is separate and not even shown.

[auroraproblem]

Timmy,

I wish you luck; however, as mentioned few here have been offered anything. Wells Fargo all but told me to 'F*** off' and that they could get a better offer from a collection company sell off. Problem is that no servicer is going to settle prior to 180 days (charge off), because it simply does not end up with a department that has any authority to settle below 20% (at least in the case of Wells Fargo). Only their recovery department can settle for less and this takes a charge off to get to.

I was even offering 10% on top of the 2MP and still no go. We are now performing a lien strip where their stupid company will receive not even $1.

Do wish you luck though, perhaps Chase is simply more intelligent financially than Wells Fargo was.

We were not even offered the modification terms under the 2MP, because they had temporarily lowered our payments. They considered that a temporary modification and therefore made us not eligible for a second modification.

Best I think most will get is the modification terms under the 2MP.

[Social Apocalypse]

Like I said on another thread... Let's keep our ears to the ground on 2MP. I am going to start another thread titled 2MP Participants: Report them HERE!

[davephx]

Originally Posted by TB98629

Like I said on another thread... Let's keep our ears to the ground on 2MP. I am going to start another thread titled 2MP Participants: Report them HERE!

Good idea.

As I recall we have had two reports that supposedly were on 2MP one from a small serviver I never heard of and another from was it Wells, I forget.

They seemed to follow the 2MP guidelines but could have been internal crafted after 2MP.

If there was a current 2MP I would think there would be reports on it from Hampadmin or Treasury.

On anther thread quoted Treasury official in a 10/31/09 report saying:
"Other new or proposed changes include allowing modifications for second mortgages; requiring lenders to clearly and in writing state reasons for a denial; and streamlining documentation requirements."

On 11/2/09 we got only from Fannie the form that was very good on reasons for denial in a Directive.

We have had some streamlining of docs from October.

We have not heard anything definitive about 2MP or "allowing modifications for seconds" other than a few rumored deals or where the servicer has both the 1st and 2nd.

[Timmy19]

Hi guys,
I don't quite understand yet, but does 2 MP stand for modification program of the second? If so, when I spoke with a Chase representative, she told me that the second usually follows whatever the first does. I don't know if that input helps.

[davephx]

Yes 2MP (2nd Mortgage Program) is a great program (if it actually gets implemented).

If the 1st is modified the 2nd has to go to 1% or 2% (if interest only or not) or be extinguished. But Treasury only pays something like 4-7 cents on the dollar as an incentive to extinguish. And only a tiny amount for a 1-2% mod. That is why last I hear from Treasury there are no participants and Treasury was in negotiations with the major holders of 2nds. But that was a few months ago and nothing new from Treasury other than the comment above.