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Chase second mortgage modification under HAMP denied

Discussion in 'Chase Mortgage - Tell Us Your Chase Story' started by shade, Jan 8, 2010.

  1. shade

    shade LoanSafe Member

    Chase denied my request to modify my second mortgage under HAMP. I have already had my first mortgage modified under hamp. Chase said they can not bring the payment down to the same DTI as the first mortgage. Well unfortunately Chase appears to not only F up on knowing the rules for first mortgages but seconds as well.
    I let my ERT member know that Chase does not have an option if they want to mod the second or not they must per the supplemental directives that if a first is modified under hamp a second must be as well.
    I kindly let my ERT know that Chase does not have a choice if they want to do this or not but they must. I had to explain that they can either extinguish the loan or they can match the terms of the first such as interest rate and repayment term. At the end I also nicely put again there is no choice but it must be done and if they decide not to follow the guidlelines I will be more than happy to call Fannie and report them along with my attorney. I'm interested on what they come back with.
    I think Chase is pissed because they actually own the second mortgage and are going to take a smack in the ass when they mod it to match the first terms. I'm sure they expect me to go away in defeat not knowing what the hell I'm doing.
    I'll update once I get a response back. Bastards.
  2. clakeca

    clakeca LoanSafe Member

    Shade,
    I was recently told by a Rep from Chase (HELOC) that as soon as I got my 1st permanently modified, call them, because they will match the terms for my HELOC 2nd. Who knows if this is BS? But, it is in their best interest to keep me owing and paying, vs. Chapter 13 or 7...in California non recourse.
    Good Luck
  3. shade

    shade LoanSafe Member

    Yes the terms clearly state that one a first is modified under hamp the second is to be as well. Chase tried to give me some BS that they couldnt bring the second down to 38% of my income.....
    I told them that they had to follow the interest rate and term same as the first no exceptions they HAVE to mod the second. The ERT sent it back to the underwriter. Should be interesting.
  4. litehouse01

    litehouse01 LoanSafe Member

    make them modify it.....they have no choice according to the rules...and report them if they don't they have gotten away with far too many underhanded things...If we are accountable they should be also. If we have to play by the rules they should also................Oh I forgot they are ABOVE the GD rules...thats only for the others to play by.. What the hell ever happened to accountibility during this HAMP process????? Has it gone out the friggin window????
  5. Garry

    Garry LoanSafe Member

    Step 2: Reduce Interest Rate
    2.A: For amortizing second liens (payment of both principal and interest): ​
    Reduce the
    interest rate of the second lien to 1.0 percent. After five years, the interest rate on the second
    lien will reset at the then-current interest rate on the HAMP-modified first lien. If applicable,
    following the initial interest rate reset, the interest rate of the modified second lien will reset
    on the same terms and schedule as the interest rate of the HAMP-modified first lien.

    Example: The Interest Rate Cap on the modified first lien is 6.5%. The interest rate on the
    modified first lien is fixed at 5.0% for the first five years and then increases by 1.0% in year
    six to 6.0%, and by 0.5% in year seven to 6.5%. Thereafter, the interest rate remains at
    6.5% for the remaining term of the first lien. Accordingly, the interest rate of the modified
    second lien will be fixed at 1.0% for the first five years and then increase by 5.0% in year six
    to 6.0%, and by 0.5% in year seven to 6.5%​
    .

    2.B: For second liens with interest-only payments: ​
    Reduce the interest rate of the second
    lien to 2.0 percent. After five years, the interest rate on the second lien will reset at the thencurrent
    interest rate on the HAMP-modified first lien. If applicable, following the initial rate
    reset, the interest rate of the modified second lien will reset on the same terms and schedule
    as the interest rate of the HAMP-modified first lien.

    Example: The Interest Rate Cap on the modified first lien is 6.5%. The interest rate on the
    modified first lien is fixed at 5.0% for the first five years and then increases by 1.0% in year
    six to 6.0%, and by 0.5% in year seven to 6.5%. Thereafter, the interest rate remains at 6.5%
    for the remaining term of the first lien. Accordingly, the interest rate of the modified second
    lien will be fixed at 2.0% for the first five years and then increase by 4.0% in year six to
    6.0%, and by 0.5% in year seven to 6.5%​
    .

    2.C: For partially amortizing second liens (such as convertible HELOCs): ​
    If 50 percent
    or more of a second lien (based on the unmodified aggregate unpaid principal balance as of
    the date the 2MP offer is made to the borrower) is currently amortizing, the servicer should
    follow Step 2.A. above to reduce the interest rate of the second lien. If less than 50 percent
    of a second lien (based on the unmodified aggregate unpaid principal balance as of the date
    the 2MP offer is made to the borrower) is currently amortizing, the servicer should follow
    Step 2.B. above to reduce the interest rate of the second lien.
    In the alternative, and at the discretion of the servicer in accordance with any related pooling
    and servicing agreement or other investor servicing agreement, for the steps above in 2.A.,
    2.B., or 2.C., the terms of the 2MP modification may include a more gradual interest rate step
    up. At no time may the interest rate on the modified second lien exceed the interest rate on

    the modified first lien
  6. davephx

    davephx LoanSafe Member

    Too bad no one participates in the 2nd mtg program.

    Treasury just reported today however the 2MP isn't dead... still looking at the situation and will post info shortly in Loan Mod section
  7. davephx

    davephx LoanSafe Member

    Nope the 2MP is a totally different program from HAMP and has no participants last report but comment by Treasury today.
  8. hope67

    hope67 LoanSafe Member

    Actually the 2MP guidelines are even better than what you told them, however, the servicer has to first participate in the 2MP program, as far as I know, there are no participants yet.

    According to 2MP, if you are approved for a HAMP modification for the 1st loan, the servicer, if it is a 2MP participant, has to reduce the 2nd loan interest to 1% ( to 2% for interest-only loan), then after 5 years and from that point forward they have to match the 1st loan terms.
  9. shade

    shade LoanSafe Member

    While I do not see anything listing who the participants are of 2MP I do not anything saying who is not participating.
    I also tried scouring a list of who is participating in this program on Fannie, Freddie and hmpadmin but couldnt find anything. How do we know the servicers or Chase isnt participating?
  10. shade

    shade LoanSafe Member

  11. shade

    shade LoanSafe Member

    Damn - another pointing out Dave is absolutely correct....
    Calculated Risk: Treasury: HAMP 2nd Lien Program is "moving forward", and more
    Well Im sure that Chase will come back to me and say we're not a participant in the program go away.
  12. caldwell02

    caldwell02 LoanSafe Member

    Shade - so you got your first modified; is your home worth more than your first?
  13. shade

    shade LoanSafe Member

    I did get the first modified under hamp and is effective and 1st payment made. My home is not worth worth more than the first by about 100k
  14. caldwell02

    caldwell02 LoanSafe Member

    Shade - sooooo. If you don't pay the second and they won't modify they can send it to collections or they can foreclose. If in fact the second is now not subordinate (and I don't know if this is true- we need to get clear on this) , then if they foreclose I would get on the horn to your first and say - hey guys - check this out - I will stop paying on my first in xxxx months because the second is going to foreclose; since YOU are now subordinate, you will lose a chunk of change. I don't want to do this, but I have no choice. Is there anything you can do to help?
  15. shade

    shade LoanSafe Member

    Not sure if it is subordinate I would assume so since its a HELOC.
    But is definately looks like there is nothing that can be done to force them to play ball except going to the extreme in the scenario you just put forth, which I am not ready to do at this point.
    Maybe I need to sit back and wait until 2mp becomes more of a reality. Crap.
  16. BadBobMo

    BadBobMo LoanSafe Member

    Look "The Title" will only change when you re-finance!
  17. davephx

    davephx LoanSafe Member

    In an e-mail to the Huffington Post, a Treasury Department spokeswoman confirmed that the eight-month-old program has yet to get off the ground as not a single mortgage servicer has signed a contract with the federal government for this particular effort.
  18. Garry

    Garry LoanSafe Member

    Excellent point, how do we not know they already signed when they signed up for MHA? Meaning they're screwed and have no choice. Sounds more likely than not to me.
  19. davephx

    davephx LoanSafe Member

    If you read the participation agreements to HAMP I do not think they say a word about 2MP since it was a separate voluntary program announced later that never had any bank sign up for.

    But banks aren't even following the agreements they did sign to follow Treasury directives.
  20. Garry

    Garry LoanSafe Member

    Here are my thoughts Dave. Yes, the HAMP program was voluntary to sign up for, but once they signed on to it, it became binding. Second, 2mp was an addition to HAMP, why would they have to sign again? Doesn't make sense to me, there has to be some kind of clause that makes additions or changes to HAMP binding without requiring another signature.

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