Chase Loan Modification - SUCCESS!!

[Karfree]

We filed a chapter 13 in October 2006 and have been making the payments. In March 2008 we got behind for the February and March payment due to college tuition and car repairs. I immediately called Chase and explained to them the problem. Our loan also had readjusted in December 2007 and the payment increased $500.00. Like many other people we thought our loan was a fixed, however, it was fixed for 36 months then went to a 6 month readjustment. I spoke with the Bankruptcy Dept at Chase and they suggested a loan modification - I questioned this as we are in a Chapter 13. The officer stated they are now offering this and did advise I was current on my payments. I told her please check this as I knew I was 2 months behind. She stated the system shows you are current but you are actually 2 months delinquent. I asked how this was possible and she stated because your account had not been audited. I still do not understand this. I was told it would take 60 days to get approved. I was directed to the loss mit department and they obtained information needed. They stated our income vs outgo qualified us and to fax the information they requested along with letter of hardship. I did this immediately. At the time I was due 2 payments - I was advised to have the 2 payments available when the loan modification came through. It is now May and I have called them every 2 weeks. Last week we received a Motion for Relief and the date is set for May 23rd. I contacted our attorney and he will go to court and take the 2 payments with him. They state I am now 5 months delinquent but I show 4 and had the checks to prove this. I was told not to make the payments as they would be added to the end. I again called the bankruptcy dept yesterday and was assured by another loan officer they ARE offering loan modifications to people in Chapter 13 - the did not use to do this but are doing this now. I explained to them what had happened and asked if this would effect the loan modification and was told no. They put in a request to the underwriter to please complete and send the modification package. They said it was 98% I would qualify as when I first applied if my income vs. monthly payments was not sufficient I would have been rejected then. My attorney states he has not heard of any Chapter 13's being offered loan modifications. I live in Illinios - could you please clarify this. I am very nervous now as I do not have the additional 3 payments. I am current with my trustee payments. Thank you

[Moe Bedard]

Hi Karfree,

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

If this is something Chase is doing then it is very new.........like a couple of weeks new. Because your file will be coded a BK and is in the BK department of Chase I am not sure what the Loss Mit dept. will be able to do for you.........you would need to just stay on top of the dept. that you were put in contact with that you gave your information to for the modification. You have an attorney that helped you with the Chapter 13 and they can also help you with contacting Chase...........if Chase is modifying while someone is in Chapter 13 they would need to obtain permission from the court first.........again your attorney should be able to help you with this as well....

[Karfree]

Thank you *** for responding. I called Chase Bankrupt Dept yesterday and they told me YES they are doing this now -they did not use to but they are now. He also stated he could see in the notes on my loan the Loss Mit Dept had put in a request to the underwriter to please respond. After speaking with him I called back a while later and spoke to another person and they told me the same. They did say my attorney would need to look at this and get the ok from the Chapter 13 Judge - this has not been a problem they BOTH stated. When I called on March 31st the person the the Bankruptcy Dept is the one that suggested this. I questioned her and she stated she has been there a long time and they have just started to do this. I hope all 3 I spoke with are sure about this. Thank you.

[Moe Bedard]

I knew it was very new that Chase was doing this...............

Keep us posted on your progress........

Good Luck with the Mod.......

[Karfree]

Is there anyway you can find out is this is the real thing? I'm pretty nervous about this but you would think people that work in the Bankruptcy Dept would know what they are talking about. Would their attorney have to ok it also and do you think the Chapter 13 Judge would approve.

Thanks for your help

[Moe Bedard]

The only thing you can do is to start the process with the courts and Chase through your attorney. Chase doing this is so new that we don't have any information on this happening to anyone yet.............you will be the first.........

[Karfree]

Chase Success - we received our modification papers on June 20, 2008 and had applied April 8 2008 - Rate 4.2500 until August 1, 2013 and then 6.2500 - Fixed - We are required to pay a $5300.00 good faith payment - and the first payment will be due August 1st. Our payments were reduced by $700.00 per month. We can get on with our life and our home is saved. The only thing that does bother me is this - they have a statement in the modification that our loan will STILL be reported to the credit bureau's as delinquent - it is brought current in th Chase system -but not with the credit bureau's. I am grateful for the modification but I'm sure this will continue to keep our credit score down and our mortgage will always be reported as delinquent. I think the mortgages should also show current on the report, with a notation of "modification granted - and the date". Chase was wonderful to work with- it did take some time but was worth it in the end. The people were all polite and professional and I know their job cannot be pleasant - Thank you Chase!!!

[Moe Bedard]

Karfree,

That is great news!!
Congratulations on the mod!!

[Karfree]

I contacted Chase in regard to the Credit Bureau reporting - going FORWARD from the modification your account will show current, however, the past delinquency will show. This is fair but does anyone know if your past delinquency will continue to effect your credit score- or does it get better after you have made several payments and your account shows current?

[Moe Bedard]

.....usually with any credit reporting once you get passed the 6 month mark of an installment loan with on time payments your score will start to repair........

[Karfree]

I am so thankful I found this site - I read it everyday and realize there are so many people in the same "boat" as we were. Thank you Moe for starting this site - people are in need of all the help they can get during these trying times. All I can say is be patient and I truly believe the majority of all banks and mortgage companies DO NOT want your home and if you can prove you can make the payments they are more than willing to work with you. PEACE!!

[Angelica Ramirez]

I'm so glad to hear your story, i'm with Chase as well and it's been getting frusterated. I put my paperwork on 4/16. I hope soon I get a response.

You gave me hope today. Thank You

[RudyJay]

WAY TO GO...PAYING FORWARD...I agree Chase reps on all levels try to be as courteous and proffessional as possible.... I had the same terms.. I figure I have 5 years to repair my credit.. Good job..rj

[Abbykatesmom]

Karfree,

What wonderful news. I am so happy for you.

AKM