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Any info on Chase Business as Usual OR CHAMP in house modification programs?

Discussion in 'Chase Mortgage - Tell Us Your Chase Story' started by alston1421, Dec 28, 2010.

  1. alston1421

    alston1421 LoanSafe Member

    I'm being reviewed for two in house modification programs with Chase and possibly re-reviewed for HAMP as well. (Still trying to get a straight answer on the HAMP re-review.)

    I did a few searches for information on the Business as Usual and CHAMP in house modification programs, but didn't find a lot of details on them. Does anyone have any information at all on these Chase in house modification programs?
  2. Evan Bedard

    Evan Bedard Call 1-800-779-4547 Loan Safe Mortgage

    There is not much information at all for any lenders and their in-house modifications. Really there is generally no requirements and any borrower (no matter what loan amount or date of purchase) may be able to qualify for assistance.. There is not set interest rate and/or terms that in-house modifications provide..
  3. starspire

    starspire LoanSafe Member

    Received Chase In House Mod

    Hi there,

    I actually did receive a Chase In-House Mod in May of 2010. It was not because I sat around and waited for them. I was on the phone sometimes five times a day for about 15 months. I was severely delinquent. I sent several letters, and also begged a lot. It was by sheer luck and determination that they agreed to work with me. At the end of the day, a Manager referred me to the "special occupation" modification group with JP Morgan Chase.

    The Underwriters are very nice at that level, but there are only six of them for the entire Nation. They can do whatever they wish, within their own Investor Guidelines, if it is a portfolio loan. The Managers are charged with making sound decisions, but also to help keep people in their homes. You must demonstrate willingness and ability to pay them to get a mod and supply a plan. You must be able to work within their Investor Guidelines. Your payment must not exceed 40% of your income (gross or net, still not sure). I am Self Employed and cut my costs substantially to reduce the spread and avoid the issue. The rates vary and the payment must be reasonable so that you are contributing all that you can.

    I am in the business, and though the media is touting a recovery, we are far from it. Real estate is so bogged down, we may not recover for another decade. I am not sure what the current loan modification environment is, because I haven't been doing it for a while. I have friends and Clients who are trying, and things are "pretty quiet." I am deeply concerned about some things that I have heard with random foreclosures being executed without notice. The lack of follow-up from the Treasury Department with respect to the problem is also troubling.

    If I could roll back to 2007, I would have liquidated everything and started anew. With homes selling at rock bottom prices, I could have cashed one out by now. Just a thought as you move on to your next steps. Good luck.
  4. TomEason

    TomEason LoanSafe Guide Staff Member

    Thanks for your informative post. I'm also in the business, primarily as an residential income property owner. I've been trying to get a Chase mod for some time on my primary residence. The info you share concerning your tenacity, how you did it, and your ultimate success is very enlightening to those of us engaged in a very shrouded, non-transparent process! BTW, I agree with your outlook and forecast for the residential real estate picture. Thanks again.
  5. starspire

    starspire LoanSafe Member

    I hope it helps... Too bad about the forecast:( I wish that we could just "fix it."
  6. kat99

    kat99 LoanSafe Member

    starspire and tomeason - your insights are very valuable to those of us working with Chase. I recently received a 3 month trial plan for a CHAMP inhouse mod after being denied for HAMP for DTI over 31% by $100. My attorney advised me to accept the inhouse plan. It saves me about $300/month. Of course, this is just the trial so I'm sure I have a long way to go before final mod. I've been working with Executive Resolution after reporting repeated complaints to HAMP Solutions for delay and lack of communication. I wonder what your thoughts are on chances for a final mod under CHAMP and what the terms and pitfalls might be? More details on my situation is posted under CHAMP Trial Payment Plan thread. thanks...kat
  7. SinkOrSwim

    SinkOrSwim LoanSafe Member

    Please help me understand something here. We're pretty much strategic defaulters right now because our house is so underwater here in the Sacramento area. We bought it for $460k, owe $370k, and it's worth ~ $245k, if you have your rose-colored glasses on. :p

    For people that are in the same situation as we, why would someone even accept a HAMP or a CHAMP or whatever, if it didn't include a principal reduction? From what I understand, all most modifications do is lower your monthly payment, either by lowering interest rate or extending the term to 40 years (or both), and then balloon all the money to the end of the loan...??? Isn't all that is doing is postponing the inevitable? If the future for housing is truly going to be as bleak as everyone is saying (and I believe it is), why do people agree to this? You're still ending up in a bad financial situation at the end. Is it primarily for people who only want to stay in their homes no matter what?

    Am I missing something here? I'm sure I must be.

    Also, one more quick & silly question: If they try to sign us up for trial payments, will we get something telling us what they'd modify us to first? Or are they just going to try to get us to send in more money (3+ mos. worth), only to tell us that they couldn't come up with a mod plan for us after all?

    Anyone? thanks. :)
  8. TomEason

    TomEason LoanSafe Guide Staff Member

    Yes, some folks want to stay in their homes for a long time, and want affordable payments. They may have a family with school age children they want to keep rooted in the same school and neighborhood. On the other hand, many homeowners view their homes as money pits, and the value may take forever to appreciate back to break-even. Those folks choose to do a strategic foreclosure, SS, or DIL, and move to new living arrangements. It pretty much comes down to a personal choice - what's best in their unique situation.
  9. SinkOrSwim

    SinkOrSwim LoanSafe Member

    Thanks, tomeason! That's what I was thinking, but after all of this reading I've been doing, I wanted to make sure there wasn't something I was missing somewhere. Oddly enough, we fall into both categories you mentioned, but I guess the finacial stability of our future is weighing heavier than having to subject our kids to a couple of moves in the near future. Change brings resilience, eh? ;)
  10. TomEason

    TomEason LoanSafe Guide Staff Member

    I agree with your last statement; I'm of the opinion that most parents coddle their kids in that regard. I'm an Army brat, and as a result we moved every couple years, like it or not. We learned to adapt and make new friends fast. Good luck!
  11. alston1421

    alston1421 LoanSafe Member

    Thanks starspire and tomreason for your insights! I am working with a specialist in the Home Lending Executive Office now after also getting the run around for the better part of 18 months (first applied for a mod in early July 2009.) I am told my app is being evaluated for both in house and HAMP but the lender has been asking me for a ton of documentation to support by self employment income, documentation that isn't required in the HAMP handbook. So I have a hunch I'm getting evaluated for something in house.

    I'm optimistic that my current home lending executive office analyst is pointing me in the right direction. For one she is able to communicate via email with me which I find incredibly helpful/efficient. My Chase relationship manager was less than informed; I think his last job before working at Chase may have been at Burger King.
  12. TomEason

    TomEason LoanSafe Guide Staff Member

    I had to laugh at your last comment :) Good to hear you're feeling optimistic with your current analyst. Anyway, I'm also self employed, and am still in my long saga of pursuing a loan mod with Chase. The underwriter has asked me for some items that make me suspect he/she doesn't believe me. The U/W pulls credit and compares all the reported obligations with what the applicant lists on the HAMP financial schedule. Then, asks for more stuff! I had been declined once for failing the NPV because Chase was way off on my income. I'm still in the process of escalating that decision through the Freddie Mac HAMP Solutions center, where they re-open the file instead of starting all over. However, in the meantime, I recently submitted a new HAMP application, and have them both going on simultaneously. Underwriting for a loan mod with Chase is decidedly more difficult and comprehensive than the underwriting for the original loan!
  13. alston1421

    alston1421 LoanSafe Member

    Tomeason-I try what I can to remain optimistic, a little humor helps too.

    You make reference to the Freddie Mac HAMP solutions center... I assume these folks only assist with Freddie backed loans? (My loan is not a Fannie/Freddie loan which I've found is a bit of a hinderance to the mod process.) Can you clarify?

    I have both w2 and self employment earnings, about 75-80% is w2 but I need to document both to qualify for a mod... I was denied at least once previously due to insufficient income and it turned out that they "couldn't" use my self rmployment earnings. Do you have any idea how Chase comes up with the monthly self employment income based on your P&L? Is it the monthly average for all months YTD 2010 (so in my case Jan-Nov since that's the documentation they have) or is it an average monthly income from just the last xx months, for example last 3 months?

    Hopefully one of the prongs in your two prong approach works out for you! Keep us posted.
  14. TomEason

    TomEason LoanSafe Guide Staff Member

    Thanks alston. FYI, to use the HAMP Solutions Center, your loan does not have to be owned by Freddie. Treasury tasked Freddie with the Solution Center service, no matter who owns the loan.

    I believe the challenge with Chase underwriting (as opposed to other lenders) is that when they see monthly obligations listed on credit report, they deduct those payments from your reported income, often resulting in a drastic reduction in net income. The challenge is to convince them that the obligations are no longer being paid monthly and thus, should not count. Some accounts may be closed, charged off, etc. More later - I'll keep you posted and you do the same.
  15. starspire

    starspire LoanSafe Member

    The "people on the floor," as one Chase Manager referred to them, do their best to allay our concerns and keep us appeased, but they have absolutely zero insight into what will happen with the file. They can suspect and hope for us, but that is all. Several people on the floor told me that my prospects looked grim, but they were wrong:)

    I know that Chase Management really wants to help people if they are willing to help themselves. Chase has nothing to loose, because they picked up the entire portfolio of WAMU business for pennies on the dollar. They are making out in any case - if they foreclose, or if they keep people in the house. Their return is probably much greater to work with people, though, because they know that the loan will ultimately be paid off, and probably before the maturity date, and that they will receive money in the interim from a compliant and respectful Owner who cares for the asset. They will most likely receive a 4 digit ROI over an average of 10 years.

    When you show your gross and net income, be sure to show that you can afford a payment of no greater than 40% of your income at an interest rate of no less than 2% including TI. I have heard that they will go lower on the rate, but usually only in dire circumstances and only with a solid plan from the Borrower to increase the payments in the future.

    It sounds like you are on the right track!
  16. alston1421

    alston1421 LoanSafe Member

    tomeason-what contact number are you using for the Freddie MAC HAMP solutions center?

    I am trying to keep my list of phone numbers/resources up to date in my "tool box" should I need them later.

    I currently have these numbers already -

    HAMP escalations, 866-939-4469, option 2
    Fannie Mae/HAMP escalations, 800-732-6643, option 1

    I have not used either of these numbers yet. I got the first one from this site and from a HOPE counselor. I got the second one from someone else on another forum who had used it. He/she said that the Fannie Mae HAMP escalations number can connect you to a "second level" Fannie rep that has access to your file (the file used to review you for HAMP).
  17. TomEason

    TomEason LoanSafe Guide Staff Member

    I've used the first one, 866-939-4469, option 2. It's good. Not sure about the other one.
  18. rehabber

    rehabber LoanSafe Member

    Its for people with kids who don't want to have to move. Neighborhoods are a big deal for people with kids.
  19. rehabber

    rehabber LoanSafe Member

    Chase only services most loans. The owners of the securities make the decisions. They make more money when they foreclose on you, because that is when the 'Credit Default Swaps' come into play.
  20. inthetrenches

    inthetrenches LoanSafe Member

    Starspire, if you are still around, would you please contact me? I'm in a very complex situation and I've been all over Chase but you have brought something new up that I would like to know more about.

    Please feel free to contact me directly at lesphip ... at gmail <----avoiding spambots.

    Please...thank you!

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