I got a Chase loan Modification!!

[frankthetank]

Hello, I love these forums, I already learned a lot.

I am currently trying to get a loan modification to lower my intrest rate. My current mortgate consists of two loans from chase 80% ($179,900) and 20% ($45,000). My first mortgage is 9% untill april 2010 then it resets, my second is 14.125% fixed with a 15 year ballon. I bought my house in April 2007 for 224,900.

My current total payment is $1,985.

This is a summery of what I sent to the loss letigation department a couple weeks ago....

I origianally took this loan with the intention of refinancing within 2 years.
I could only afford under $1,400 a month for my mortgage but my paymens are $1,985, so my plan was to take $600 per month out from my savings of a little over $10,000 and this was how I made all my payments up untill now.

But for a few reasons I cannot get refinanced now as I planned, so now I am a couple months away from running out of the savings I was using and I will be $600 short every month.

This is what I sent them as far as income and bills:

Monthly Income:
1)Job income = $1,365 - shown with tax returns
2)Rental income = $1,500 - shown with leases (I have 2 roomates)

TOTAL = $2,865.00

Monthly Bills
1) New mortgage = under $1,385 ($1985 is what ive been paying)
2) Property taxes = $288
3) HOA fee = $308
4) Electric = $115
5) Misc. other = $769

TOTAL = $2,865.00

I also sent a detailed letter explaining my whole situation and bank statements, tax returns, and lease agreements.


1)Do you see any obvious problems why the underwritter might not want to modify th loan?

2)And if they do modify the loan do you think they can do what im asking ($600 less per month)?

3)They said it is now in underwritting, what does that mean exactly and is that a good or bad thing?

Thanks in advance for any hepl and opinions!

[Cat Damiano]

Hi frankthetank,


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

You will have to wait and see what they say...............but with Chase what I can see is that you have used a hypathetical payment..............Chase requires you to show a surplus on the current payment that you are making............so that could be problem.........you will have to see what they come back and say........

Keep us posted..........

[frankthetank]

Thankyou for responding so quickly,

When you say surplus, do you mean that there should be money left over on my end after paying the bills or does that mean that there should be left over bills after I pay what I can?

Also, have you seen cases similar to mine go through? and if so what are some of the mods you have seen/heard of, do they lower the intrest rate for a couple of years and then after that they go up slightly for the rest of the loan?

Thanks alot for any advice, info and opinions. I really appreciate it.

[Cat Damiano]

In answer to your questions.............

The surplus is after the household income versus the household expenses are calculated using your current mortgage payment.............
Every one of the Chase Success stories showed a surplus left at the end of the month of between $100-$300.............they have not yet approved any modification if you show a deficit.

The workouts given are based upon what the investor on your loan is doing as far as modifications................each one is different............
You can see the workouts given by going to the Success Section of the forum............all of the Chase success stories are titled with Chase in it.

[frankthetank]

Thanks again for the info..

Now, If you look at the little bill balance sheet that I faxed to them and listed in my first post the diference between my household bills and my income I put as misc ($769), that is what I would consider left over to pay for food/clothes and extra money.

So that $769 was including my hypathedical number of $1,385 mortgage instead of my current $1,985 mortgage.

My question is would this extra $169 ($769 minus $600 more that I am acually currently paying) be considered that "surplus" your talking about??

And if so should I send them another letter to clarify that or is that obvious?

Thanks again so much for your helpfull info.

[RudyJay]

frank.. yes as long as you have a surplus.. left between 100-250. I was able to get a mod with Chase ... The way it works is to show the 1985.00 ( your mort) is your current mortgage and your monthly expenses with a "surplus". So when the loan modification is reviewed whatever the investor on your loan allows..there will be a larger "surplus".. Like CAT said .. to date she hasn't seen anyone with a negative surplus get a loan mod...rj

[frankthetank]

Ok, I understand perfectly now thankyou very much guys!

I think monday I will call the loss mit department and see if I can fax them another page just ecplaining more clearly that there is $169 per month that is leftover after all household bills are paid.

Do you think thats a good idea?

[RudyJay]

Yes. If it was me I would.. I don't think it will hurt your cause...and could help... but ...remember Chase is slow... in completing their loan mods... the key is to call often...this is a good opportunity to call too...to clarify your financials... others have also called Hope Now or whichever organization is in your area as advocates as well on your behalf..

NeighborWorks America www.nw.org
HOPE 1-888-995-HOPE
ACORN ACORN: Home

Good luck frank...keep posting rj

[frankthetank]

Ok I called and faxed over another page clarifying my balance sheet of bills showing a surplus of $169.

My current 80/20 mortgages total payments are $1,985.00

With the info on my first post do you think I have a shot?

Has anyone else here gotten a modification with similar numbers and/or similar ratios? If so what were your terms?

Thanks guys for all your help

[frankthetank]

also my loan doesnt reset untill april 2010, do they only do modifications for loans that are resetting sooner or for only people whose problems come from loan resets?

[Cat Damiano]

Now that you are able to show the surplus it looks alot better............it is ultimately going to be up to the investor on your loan..........the loans have different investors on them...........

All I can say about Chase is you almost have to nag them for updates..........even when they tell you not to call back for two weeks........call anyway.......

[RudyJay]

Our terms are all different because of the different investors.. when you have time read the success sections. When I first sent in my paperwork I checked 2-3 x per week... as the wait got longer I called more often.. you may want to keep notes of times dates whom (if you can) result. When you call information or notes on conversation gets posted on your computer file rj

[frankthetank]

Ok, heres the newest development in what I expect to be a lengthy soap opera for me over the next few months.

My loan does not have any escrow, and my property taxes of $4,000 were due in april of this year for 2007. Well I held out on paying them because I didnt know if I was going to keep my house (and still dont know). I even told chase in my letter that I owe the taxes but cant pay them unless I know I am keeping the house.

So I finally decide to just pay them as the county was going to become a problem, so I went to pay them today and they said "sir your taxes were already paid in full" Surprised I asked by who, and sure enough they said "chase home finance"

Now I was happy to hear this as now I can keep this $4,000 atleast for the time being and will still have it if I dont get a mod and forclose.

I called chase to confirm this and to make sure that my next months payment wouldt be $4,000 higher and he said he is pretty sure theyre not going to do that, but he said hes not sure if it will be tacked on to my mortgage payment broken up over many months or if they will just wait untill I get a mod and it will be part of my "down payment/good faith payment"

what do you think they are going to do??

So, do you guys agree with me that this is a good thing for my situation or does this somehow hurt my mod chances??,
my though was this could help my mod chances because it shows them that they have an immediate benifit with my good faith payment if they approve me, as I am not yet behind on my morgages.

Thanks a lot guys, youve been great

[Cat Damiano]

Frank,


For the taxes I can only speak from my experience.........they did not put the delinquent taxes into my principle balance..........they broke them up over 24 months and added that along with setting up an escrow for my current taxes and adding that amount to my modified payment..................

[RudyJay]

Hi frank

One of the reps said that if Chase opens an escrow account for you .. in your case taxes.. there is an escrow analysis which will determine the amount to be paid. If the amount is $ 1000 or less the payments are broken up over a 12 month period. If it is over $ 1000 it is broken over a 24 month period. Then added to the modified payment..

It must be a good thing if they paid your taxes ???? We were current in our payments... we didn't pay anything extra... rj