Active Duty Military One Month Behind on Mortgage; Struggling to Make Payments

[tamiccio]

Hello!

I am SO glad I found this forum and I pray that someone can provide some direction to my husband and I as we are both completely stressed out.

Here is the situation - in July 2006 my husband, active duty military applied for VA Loan through Wachovia for a house in North Carolina. My credit was not great and would increase the interest rate so it was recommended that the mortgage alone be put in my husbands name but the deed is in both of our names. This was the first house we have ever purchased and were not educated on the mortgage process etc. My husband barely make 25K that year; he is enlisted. I make approximately 65-70K per year but again my name is not on the mortgage. The payment was approximately $1775. Our mortgage was then sold to Chase and our taxes went up shortly after increasing our mortgage payment to $1890 per month. Believe it not this increase has caused us hardships as we have been a month behind on our mortgage for the past two months. We are unsure what to do at this point...at first we contacted Chase regarding a short sale but we need our house and we could afford it if we could just get our payment back down. We bought the house for 250K and they rolled 5K I believe in closing costs into the mortgage so I think at this point we have just gotten the mortgage after paying for 2 years down to the 250K. We had done some renovations, new carpet, hard wood flooring etc. so we believe it should have increased the value of our home but my husbands debt to income ration is now very poor so no one will let him refinance. I have a credit score of approximately 680 but I was told no for a mortgage as well.

PLEASE anyone with any info that can provide some direction - we do not want to loose our house but do not see a light at the end of the tunnel unless I win the lottery.

THANK YOU FOR YOUR TIME AND ASSISTANCE!

[evel1999]

Contact the Mortgage Co and request a Loan Modification.

You will need to do a hardship letter, provide proof of income for your husband since he is on the loan, and a financial statement. There are examples of hardship letter and etc on the web site that will help you with this.

Some others on this site will be able to give you advise on how to proceed to save your home and get a Loan Modification. It is a lengthy process, but worth it in the end.

[evel1999]

Since this is a VA loan, is it a fixed rate loan or is it an adjustable rate?

Did your payments go up because of an adjustable rate or was it just and increase to your escrow to cover taxes and insurance?

If it is a fixed rate VA Loan it may be hard to get a Loan Modification as the interest rate is usually a good rate and could not be modified but they would be able to work with you on getting the payments current.

[Moe Bedard]

tamiccio,

Welcome to Loan Safe and thank you for joining.........


What is the interest rate at right now?
When did it adjust?
What was the original interest rate?

Moe has posted this before, didn't know if it might help your situation.......or at least give you the proper contacts for your situation through the military........

The Housing and Urban Development Act of 1968 which under Sec. 106(c)(5)(A)(ii)(IV)mentions a notice to servicemembers. This was in the FDIC Report Bulletin No.10. August 31, 2006. HUD has published a Servicemembers Civil Relief Notice dated 11-20-2006(Mortgage Letter 2006-28). The notice must be sent to all homeowners in default on residential mortgage within 45 days from date of missed payment and include a toll free military phone number.

Servicemembers Civil Relief Act (SCRA)

Servicemembers Civil Relief Act (SCRA) - Section 303 - Mortgages and trust deeds

a) MORTGAGE AS SECURITY- This section applies only to an obligation on real or personal property owned by a servicemember that--
(1) originated before the period of the servicemember's military service and for which the servicemember is still obligated; and
(2) is secured by a mortgage, trust deed, or other security in the nature of a mortgage.

(b) STAY OF PROCEEDINGS AND ADJUSTMENT OF OBLIGATION- In an action filed during, or within 90 days after, a servicemember's period of military service to enforce an obligation described in subsection (a), the court may after a hearing and on its own motion and shall upon application by a servicemember when the servicemember's ability to comply with the obligation is materially affected by military service--
(1) stay the proceedings for a period of time as justice and equity require, or
(2) adjust the obligation to preserve the interests of all parties.

(c) SALE OR FORECLOSURE- A sale, foreclosure, or seizure of property for a breach of an obligation described in subsection (a) shall not be valid if made during, or within 90 days after, the period of the servicemember's military service except--
(1) upon a court order granted before such sale, foreclosure, or seizure with a return made and approved by the court; or
(2) if made pursuant to an agreement as provided in section 107.

(d) PENALTIES-
(1) MISDEMEANOR- A person who knowingly makes or causes to be made a sale, foreclosure, or seizure of property that is prohibited by subsection (c), or who knowingly attempts to do so, shall be fined as provided in title 18, United States Code, or imprisoned for not more than one year, or both.
(2) PRESERVATION OF OTHER REMEDIES- The remedies and rights provided under this section are in addition to and do not preclude any remedy for wrongful conversion otherwise available under law to the person claiming relief under this section, including consequential and punitive damages.

Servicemembers Civil Relief Act (SCRA) - Section 304 - Settlement of stayed cases relating to personal property

[tamiccio]

Thank you all for the info. In order to answer the questions -

It is a fixed rate and the interest rate is 6.45%.

Our loan payment increased due to taxes.

So, from the information it appears that Chase will not want to do a loan modification because we are fixed and at such a low interest rate correct?

Is it not predatory lending to loan a man who brings home approximately 25K per year in the military 255K? I cannot get a loan and I make considerably more than my husband....

Sincerely, I Thank You for the Information!! We are unsure where to go and Chase has not called us back.

[Tom H]

This is not predatory lending, the lender looks at household income so your income would be included in that figure despite your not being on the loan. You have a very good rate and loan. If the hardship is temporary you can utilize assets on the base for an interest free loan to get back on track - try looking on the military one source site - it has an incredible amount of free information and resources for military.

Military OneSource

[tamiccio]

Thanks for all the info thus far....I am hoping for some additional help. I keep reading the postings on loan modifications. I spoke to someone at a modification service and to make a long story short I explained we have a fixed mortgage payment of 1885. interest rate of 6.35%.

We are trying to get our mortgage reduced due to some personal hardships - illness etc. He believes he could get us a rate reduction, possible principle reduction and mortgage payment of @1500. IF we pay them 3000. Now, in the long run if this is what really happens that appears to be a win win situation but if I struggle to beg and borrow from family to come up with the 3K then I want to know that it is hopefully going to work out. I do not want to continue living like we are and then ADDITIONALLY owing family 3K!!

Does anyone have any experience or direction for me?

Look forward to your help!

Thanks!

[Moe Bedard]

What these companies do is make you promisses they can not possibly deliver on..........and they take your money..........and then they back paddle......because what they offer is just not possible.......

You would be better off using that 3k toward bringing the mortgage current........

The truth is that you have a fixed rate VA loan that you said is good except for the taxes...............how were you paying the taxes originally before Chase took over the loan..........and were they current?


StangFlyer gave you an excellent source for your situation above........they offer loans to get caught up for military families..........

[Tom H]

Did you try the military One Source site? If you don't like surfing the web they have a number you can call 24/7 and they will cousel you via telephone. I am in the military also and understand what you are going through. I'm not sure what branch you are in but often times if the hardship is temporary there are plenty of agencies that may even be able to give you a grant (like Navy/Marine Corps Relief); something you won't have to pay back or interest-free at a minimum. I hope you find a workable solution for your family.

From what you've said above it looks like your home's value is still there and I pray that it stays that way when it comes time to PCS.

Best of luck to you.

Tom

[tamiccio]

Thanks for the info.

I am bummed should have known it was too good to be true.

Our taxes were paid as the taxes and insurance were included in our mortgage payment which was initially 1775. We were making that - not easily but we were making it - then when it got increased to the 1885 it really messed us up. I got sick, was on short term and the story goes on.....

As far as the other post I did go to military one source - I searched and there were several articles but nothing that appeared to be of a similiar situation - alot had to do with ARM mortgages which thankfully we do not have.

I guess what we are looking for is a way to decrease our mortgage payment to exactly where the modification co. put us 1500 per month. Then we would not be struggling every month! BUT from the sounds of it - they are not legit! ugh

Not sure where to go from here.....I sent chase another message but because we are not two payments behind they will not work with us...odd isnt it - they want you to get even further behind before they will offer some options!

Well, if anyone has any other info or ideas please let me know. I will try the phone number on military one source that a poster was kind enough to recommend.

[tamiccio]

Hello!

Can anyone provide any insight or direction on the Chase process? I read all of the posts and while they are case by case basis was there anything that you can share with me on what you should have done or what you learned along the way...?

We are only one month behind and I have spoken with every dept under the sun at chase. Tonight collections transferred me to customer care who transferred me to the Home Loan Dept who told me because we have been one month behind for several months they cannot help in re-writing the loan. I told him if they would have called us back potentially we could have resolved it months ago and then we would not have ended up three months one payment behind. Anyway...

He gave me another number tonight for loss mitigation where I left a message begging someone to please call me back that can help us....not transfer us to another person/dept.

I do not understand why they want us to fall another month behind before they will work with us....

Does anyone have any information they can share with me....

Thanks

[Moe Bedard]

tamiccio,

Your investor is VA and you are fixed at 6.35% for 30 years...........if you get a repayment plan for the month you are behind, the payment is going to be higher than it is now..........

[tamiccio]

***

We were not looking for a repayment plan for the month that we are behind - we are looking for them to help us lower our monthly payment every month so that we do not fall into foreclosure. Is that what loss mitigation does or are you saying that is what they will ultimately recommend for us?

I explained our situation and told them with the income adjustment, short term disability etc we do not see our income going back to where it was.

Sorry if I am confused but this whole process and dept names of who need to speak with at chase is VERY confusing...

[Moe Bedard]

Here is the number to Texas Loss Mitigation.........because your loan is a 30 year fixed VA 6.38% I am not sure which branch would have it.........I am also not sure what they will offer you considering most of the workouts are a step rate that end up being fixed at 6.50-6.75% which is higher than you have............I just don't know what they will be able to offer you on a government loan........

Texas Loss Mitigation
1-866-316-9218

[tamiccio]

Thanks *** for the information.

I called that number and spoke to Wanda who told me she cannot help me as she is in the foreclosure dept for subprime...surely enough she transferred me back to customer care...Unreal! I always end up back there.

Thanks for the help - I am going to keep calling until I actually find a human who can help

[Moe Bedard]

I don't know why they are telling you that..................they are Loss Mitigation........I know several people that were working in that dept.........they are not for foreclosure........

It isn't going to be easy with your type of loan............both San Diego and Texas have depts. set up specifically for modifications on arms and subprime loans..........both of which yours isn't..........that is why I said that I don't know which dept. you would need to deal with...........you might have to deal directly with HUD on this........

[RudyJay]

Hi.. or you may want to try the Veterans Administration. I googled VA home loans and there seems to be a website portal to ask questions. You may want to check this and maybe find some advocacy for you with Chase. This is just a suggestion...rj