Chase Home Finance Mod SUCCESS!!

[jcg109]

Hello to all,

I'm hoping that there is someone out there that may be able to direct me to some resources, or is in the same boat.

I have EXCELLENT credit, a great job, and I can afford my home. I've never paid anything late, and I'm current on all of my housing payments.

I'm in an ARM set to adjust from 7.1 to a 10.75 interest rate in Sept 2009. I can't refi, as I'm upside down in my home. My first mortgage is 204,888. My second is at 25K. I'd need to bring roughly 60K to the table, but can only bring about 30K. The most recent appraisal came out at 185,000-188,000.

I stupidly got into this ARM out of a fixed rate loan back in Aug of 2006. Not a day goes by that I don't beat myself up over this. I had about 30K in medical bills that I needed to pay. I thought it would be easy to refi out of this, but, here I am! Nobody put me hear but me.

My Mortgage is thru Chase Home Finance. I've tried calling them, to explain that when this payment resets, it's going to be a struggle. I've asked if I could get the loan re-written, at a fixed rate. They won't budge, as I'm upside down in the poperty.

I tried calling HOPE.......No luck. A woman took all this info from me, completed a budget, and when I call back, they can't seem to locate my info.

I have no intentions of moving, or selling the property. I've been paying down my second, and have started to rebuild my savings. I've also taken on a rommate, who pays me 800 per month, and I'm throwing that $$ into savings to try to raise the capital to eventually refi out of this. As this payment resets, starting in 09, it can double in size. I feel like if I could get a rate freeze for 5 years, My problems could be solved. I'd have the $ I need to bring to the table for a refi.

Any help or advice is welcomed. There doesn't seem to be programs for homeowners with great credit, and zero equity. Thank you, and sorry for the longwinded post.

[aimster]

Hi there, I was recently in a similar situation. I refinanced through FHA Secure since that is currently the only program that does not care about loan to value. What I had to bring to the table is the difference between the amount of my first loan and what FHA would finance (95% I believe), closing costs and amount to set up escrow. Second mortgage company simply had to agree to subordinate. We contacted Flagstar bank, and there are a few other lenders doing FHA Secure.

[jcg109]

Originally Posted by aimster

Hi there, I was recently in a similar situation. I refinanced through FHA Secure since that is currently the only program that does not care about loan to value. What I had to bring to the table is the difference between the amount of my first loan and what FHA would finance (95% I believe), closing costs and amount to set up escrow. Second mortgage company simply had to agree to subordinate. We contacted Flagstar bank, and there are a few other lenders doing FHA Secure.

Thanks so much for the response. What does it mean, when you state getting second mortgage Co to "Subordinate"? The terms and jargon are somewhat new to me. I'm going to look into FHA right now.

Look into the FHA Secure program with the Second to refile again behind the new first mortgage from FHA Secure - that is the concept of Subordination, taking the second position again.

We are seeing that a lot of the lenders out there do not have the ability to sell the FHA Secure loans with a subordinate second that is over a 100% CLTV (over the property value). Wells Fargo appears to have some product in the FHA Secure Secondary Market that will do that. As much as I am not fond of them, you should give them a call, DO NOT CALL A BROKER, THEY PUT YOU IN THIS TURKEY ORIGINALLY, use a local Wells Fargo Home Loan Center, they will have a Community Reinvestment Platform in the mortgage department that should be able to assist you.

With FHA Secure the first mortgage should not be more than 97% of the total value of the property in today's market....so for a property valued at 100,000.00 the FHA Secure loan can not exceed 97,000.00, the second can exceed the value of the property as long as they are willing to subordinate. You will need to in your case pay down the present balance on your first mortgage to get to that 97% LTV...are you able, as the property is worth 188,000.00 and the mortgage is 204,888.00 --- with closing costs and prepaids (FHA requires insurance and taxes to be with the payments) you would need approximately 29,028.00 to the table to close the loan?

Other wise you will need to modify this loan, you are early in the process since it is not due to adjust until 9/2009....so I would see about the FHA Secure if you have the funds to do it, or wait it out until about June of 2009 as it appears that it will not adjust until then as it is a 3/28 ARM.

[jcg109]

Thanks to all who have responded. I'm going to look into Wells Fargo. I'm so relieved to have found this space on the web. I can bring 30K to the table. Paying off the 2nd is the issue. If I don't have to, and can get into the FHA, all the better.

Now, the latest issue I'm facing is the 10K prepayment penalty from Chase Home Finance. Does anyone know if these companies are likely to waive the fee? The Mortgage is not worth the paper it's written on, but I'm sure they will want the $$

You can in some cases negotiate the Prepayment Penalty with them.....that is tricky, but they are really as you point out not in the position to take the high road....they have been slashing them and in some cases forgiving them. So...onward and upward and the test of wills begins.

You need to get credit approved first, then the appraisal....then at that point get the Loan Officer or a Senior person at Wells to assist you in obtaining the Second Subordination, that too may have to be negotiated...who is it with?? Then if it were me, I would get on the phone with the lovely folks at Chase Home Finance....like a SENIOR person and negotiate that Prepayment Out of the Picture....you can do it....and if they will not take the whole thing off, get as much as possible....beggars (Chase Home Finance) can not be choosy. That would be my take on the issue, so forge ahead and schedule it sort of like above to get the job DONE.

You know that your loan is not necessarily going to adjust upwards in rate, right? Your loan paperwork indicates what COULD happen if the indices were rising compared to your original rate.

At the moment, most of these indices, the LIBOR, the CMT, MTA, etc. are falling, and have been for about 18 months.

If you get out your loan paperwork, find the ARM rider or ARM disclosure, it will show the index your loan is tied to, the margin, and the frequency of reset.

As the economy continues to slide, we will likely see interest rates on most ARM loans fall when they adjust, ESPECIALLY the ARM loans that were given to borrowers with good credit. Even sub-primers might not feel the hit they are expecting.

Get out your loan docs. Then lets see what's up.

Originally Posted by jcg109

Thanks to all who have responded. I'm going to look into Wells Fargo. I'm so relieved to have found this space on the web. I can bring 30K to the table. Paying off the 2nd is the issue. If I don't have to, and can get into the FHA, all the better.

Now, the latest issue I'm facing is the 10K prepayment penalty from Chase Home Finance. Does anyone know if these companies are likely to waive the fee? The Mortgage is not worth the paper it's written on, but I'm sure they will want the $$

Sorry to disagree, but with the huge margins that these puppies are sporting they are going to stay up, maybe the indices's are going down but with a 9.050 margin they do nothing but stay up and prey on people.

So....falling indices's are one thing, but fully indexed start rates with ARM terms that do not allow the rate to fall below the start rate with margins that are the clone of the start rate leave most of these members in the dirt.

They may not go up per se, but they will stay up and not go down....

[jcg109]

I am in an ARM scheduled to reset in 2009. Like everyone else, I’m upside down. I beat myself up everyday over this situation, and feel disgusted with myself.

Fortunately, I have family with cash on hand willing to help me pay off the 2nd, and plunk down on the first, but I really don’t want to go this route. I have been paying down debt like crazy, and withdrew alot from personal savings in order to pay off huge medical bills, student loans, and credit cards. I have a nice retirement fund, but don't want to touch the $$ if I don't have to. My credit is immaculate. (High 790’s across the board) I got into this mess, thinking that I could refinance out later on down the road…..yeah right!

I’ve been reading here about loan mods. Chase Home Finance purchased my loan about 3 months after the closing date from Accredited Home Lenders. It’s currently at 7.125. I am hoping I could work something out with Chase where I keep my interest rate where it is right now, to avoid the ARM resetting. I would not be able to afford the increased payments without refinancing. I’m current with all payments, just getting back on my feet financially right now, like everybody else. In reading other people’s posts, I know I would show a surplus at the end of the month of at least 300 dollars, but probably a bit more. I also have about 11K liquid cash of my own on hand.

Do I call Chase now, or wait until I am closer to the time? I’m not in a market that is declining as bad as other places. (Fairfield County CT) I owe 203,000 on first, and 27K on 2nd. My home appraised last year at about 188,000. I earn a decent income, but the payments over time are going to almost double. I'm trying to stay positive, and accept that whatever happens will be for the best.

Thanks in advance.

[Moe Bedard]

jcg109,


At this point you would need to call Chase and find out if you are able to start the modification process............it might be a bit too soon......but it doesn't hurt to try.............call either loss mit number to see which arm unit has your file............


San Diego Loss Mitigation
1-858-605-3345
1-877-838-1882


Texas Loss Mitigation
1-866-316-9218

[jcg109]

Thank you for posting the Loss Mitigations #'s. I called, and spoke with a Rep who was very helpful at the Texas Office. Since I'm current with all of my payments, she gave me the # to Preventive Loss Mitigation. At this #, I spoke to another rep who was also very professional, and courteous. She told me that since my adjustment is over a year off, and I'm not in distress at this time, they could not help me right now. She advised me to call back 4-5 months prior to the reset, and told me I'd be able to start the process for a loan mod. She told me they are approving "alot" of mods right now. So, I'm gonna sit back, wait, and although nothing is guaranteed I certainly feel a bit more optimistic since calling.

[Moe Bedard]

I am glad that you were able to at least speak with someone.......just keep us with them when you get closer to the time..........

[jcg109]

I thought I'd post an update:

I spoke to a gentleman in Early Loss Mitigation (Since I'm current) and he took some financial info, and pre-qualified me for a loan modification over the phone. Tomorow evening I will fax over the hardship letter, along with all of the other requested info: Bank statements, W2's, etc. I'm thankful that they are letting me start the process NOW, rather than 4-5 months before my loan adjusts.

He told me that the majority of Mods for folks in my situation are going through, and that they are very agressive. So, my fingers are crossed.

He told me to call back 2 weeks after I fax all of my info over.

[jcg109]

I called today, as the anticipation was killing me. It's a good thing I did, as the first Rep I spoke with gave me a fax # for the wrong department. Apparently, my Mod will be handled my an office in Rochester, NY called "Early Resolution". My paperwork was faxed to Loss Mitigation on 1/6.

Just refaxed everything, and was advised to check to see if fax was received "late tomorrow afternoon"

[jcg109]

Ok, so they finally got the paperwork, and there was a note in my file that they were missing 2 months bank statements (They were faxed 2x's already, and in with the 49 pages of paper) Nonetheless, I dowloaded Nov and Dec from my banks online website, and just faxed them over. The rep I spoke with today told me not to call back until next Fri.

You guys were not fooling when you said it takes 4-6 months to get this done. Glad I've at least got the ball rolling. For whatever reason, my request for a loan mod is being handled by a unit called "Early Resolution" in Rochester, NY.

[jcg109]

Well, I called back just a few minutes ago, and spoke with a very helpful rep. She told me that they received the bankstatements that I faxed over on Fri, and that my file is now in underwriting!! She told me the closing Dept would be calling me in 2 weeks!!! I asked her if things looked good, and she said yes, but we'll see. I'm trying not to get my hopes up yet.

[Moe Bedard]

It won't be long now........

[jcg109]

Called today, and still no news. The rep told me I could continue to call weekly, but at this point, I could exect a call within the next 2 weeks from the closing dept, who will let me know if I'm approved/denied.

[JoannaOregon]

Does anyone know what number you can call to see where you are at in getting assigned to an analyst? I am in Oregon and just have the regular customer service number for Chase.

Thank you.

[Moe Bedard]

the starting number is
1-800-446-8939

[jcg109]

OMG!!!! I checked my voicemail at home, and I recieved a message from the Closing department at Chase stating that my Modification has been approved, and the Docs are in the mail.!!!! I don't know what the terms are, so I called, and left a message to try to find out. I'm crying, because I can't believe it!!!! It's taken less than one month to get to this point, and I'm thrilled!!! I have prayed everyday for the last year for a positive outcome, and I believe I've gotten it! (It ain't over though, until the paperwork is signed )
I will post again once I know the terms, and when the Docs arrive. I have spent the last two years fraught with anxiety about getting myself into this horrible loan. It's been a monkey on my back, and I'm so grateful for this piece of good news!!

THANK YOU LOANSAFE!!!!! I cannot express my gratitude enough for the friendly, non-judgemental help/support I've gotten here.

[Moe Bedard]

Well that is awesome news!

Keep us posted when you get the docs.........

[belmd98]

Congratulations! I hope you will get a good mod package. Do you have the "Early Resolution" contact no? I would like to check if I can get a loan mod for an Option Arm that won't reset until 2012.

Goodluck!

[jcg109]

Originally Posted by belmd98

Congratulations! I hope you will get a good mod package. Do you have the "Early Resolution" contact no? I would like to check if I can get a loan mod for an Option Arm that won't reset until 2012.

Goodluck!

Thanks! I still can't get anybody on the phone to at least give me a heads up regarding when to expect the paperwork/terms, but it can't be any worse than what would have come down the pike if the rate reset.

The # I was advised to call for my particular loan was 1-866-665-7629.
Good luck!

[michmom2]

That's great!! I have hope now because that is also the # i've been dealing with for our mod. I hope I hear something soon. I should have enough money to pay my Jan. 09 pmt on Fri and then I need to start scrounging up money for the Feb. 09 pmt. ughh! I hate being this late, but oh well.

Anyway, congrats and keep us posted!!