Home Loans and Support

Forbearance and "Pre-approved" for Obama Plan?

Discussion in 'Chase Mortgage - Tell Us Your Chase Story' started by imupsidedownfl, Mar 22, 2009.

  1. imupsidedownfl

    imupsidedownfl LoanSafe Member

    First off, I’ve been visiting this forum for a couple months now and I’m very grateful for it. I’ve learned a lot. Thank you.

    Here are my specs:
    I bought my house in 2006 at the peak of the market for $408k. I put 20% down (about $90k) and financed the remaining amount for 30 years at 6.15%. My current mortgage is about $2,550 per month. Not a Fannie Mae or Freddie Mac investment. As everyone is aware the market here in Florida has fallen apart and you can now buy my home for a little under $150,000. I currently owe $327k. Add a pay cut and this has all been really difficult to swallow.

    I called WaMu (now Chase) and talked to them about a loan modification on Feb. 7th. I faxed my paperwork within a couple of days and called to confirm about 2 weeks later. Thankfully, they didn’t lose any paperwork and verified they had received it. Step 1 complete.

    From here I called at least once a week to see if there were any updates. Nothing happened until Friday, March 20th. I didn’t get a call from Chase, but from a local appraiser who wanted to make an appointment to appraise and take pictures of my home. I called Chase right after I got off the phone with the appraiser to see what was up. The representative told me I’ve been assigned a councilor and had been approved for a forbearance agreement and he said I was “Pre-approved†for the new government modification program. However, I was told that I would need to complete a three month forbearance agreement @ $2,200 per month “to prove†I could make steady payments before I could start the government plan. I haven’t made any payments for February or March. I wanted to talk to my assigned councilor but she wasn’t in the office. He gave me her contact information and I’m going to call her on Monday.

    Why would I have to complete three month forbearance before I can start the government program? Taking my payment down $350 is nice but still not practical for my situation. My payment would need to be around $1750 to be at the magic 31% mark. I’d just like to get some advice on how to proceed from here.

    I’d appreciate any opinions.

    Thank you.
  2. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    Hi imupsidedownfl,

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

    You would need to clarify with Chase as to exactly what you are receiving if those payments are not at the 31% target of your gross income.......

    the trial modification can be utilized as a part of the program ..........

    In summary, participating servicers will (in order):

    • Determine that a loan meets the minimum eligibility criteria (owner occupied, originated before January 1, 2009, UPB equal to or less than $729,750). If yes:

    • Obtain sufficient income information to determine if the borrower has a front-end debt-to-income (DTI) ratio of 31% or greater (verbal income may be accepted for initial evaluation subject to verification prior to final approval). If yes:

    • Capitalize (add to the loan amount) accrued interest, past due taxes and insurance, delinquency charges paid to third parties (e.g., for inspecting the property), and escrow advances by the servicer – but not late fees or other default fees charged by the servicer;

    • Determine how much of an interest rate reduction is required to get the borrower's mortgage payment to 31% DTI, and if the DTI still exceeds 31% at the rate floor of 2%, modify the loan in other respects specified in the Guidelines;

    • Apply a Net Present Value (NPV) test to determine if modification (including the incentive payments) provides the investor with a better financial outcome than foreclosure. If yes:

    • Put the borrower on a trial modification at the new interest rate and payment for three months.

    • If the borrower is current at the end of the trial modification period, the servicer will execute a modification agreement that includes escrows for taxes and insurance even if the prior loan was not escrowed.
  3. imupsidedownfl

    imupsidedownfl LoanSafe Member

    So I talked to my Chase rep today and she had my income jacked up. That's why my payment only went from $2,587 to $2,200. After talking to her today she said she could mod my loan to $1,930 per month. To do that my interest rate would be set at 3%. She said that would be at 34% of my income which is within the guidelines of the new plan.

    I don't really understand why I can't get right at 31%, but at this point I'm not sure if should really push the issue considering this is what I think a good deal. Can I get someone's opinion on if they think this is a good deal based on what they've seen? I know you can't tell me what to do, I'm just looking for some outside advice. Thanks in advance.
  4. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    this is the way the guidelines word it.............

    The Front-End DTI Target is 31%. The Standard Waterfall step that results in a Front-End DTI closest to 31%, without going below 31%, will satisfy the Front-End DTI Target.

    3% is a great rate...........we do not see that often from the investors with Chase.
  5. imupsidedownfl

    imupsidedownfl LoanSafe Member

    I think it's a pretty good offer. They are going to FedEx the paperwork and I'll have a local real estate attorney take a look at it. I'll keep you posted. I really appreciate eveyones help.
  6. chasepmt2hot-firefighter

    chasepmt2hot-firefighter LoanSafe Member

    Was the 3% for the life of the loan or a step rate that will increase in 1 or 5 years?
  7. Audrey&GunnersMama

    Audrey&GunnersMama LoanSafe Member

    Unless it's a freddie mac or fannie mae loan they are not obligated to go to the 31%. That's a great mod! I would accept it ;)
  8. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage


    Is that what WaMu is telling their reps...........because that isn't what the guidelines state..............it sure looks as though they would have to get to the 31% using the waterfall steps...........

    The refinancing option is only available for conforming loans owned or securitized by Fannie Mae and Freddie Mac. Most conventional loans including prime, subprime, adjustable, loans owned by lenders and loans in securities are eligible for a Home Affordable Modification.

    Determine how much of an interest rate reduction is required to get the borrower's mortgage payment to 31% DTI, and if the DTI still exceeds 31%at the rate floor of 2%, modify the loan in other respects specified in the Guidelines;
  9. Audrey&GunnersMama

    Audrey&GunnersMama LoanSafe Member

    I WILL HAVE A VERY LONG EXPLAINATINON FOR YOU A BOUT WAMU TOMORROW. ITS'S 8 pm here and i just want to focus on 9pm and quittin' time (sorry for previous caps-- was notating a previous phone call).

    But I will take some time and answer your question with a good explaination tomorrow ;)
  10. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    I was just askin.........:p:eek::)

    Well you have a good rest of your night and I will wait patiently until tomorrow to hear WaMu's interpretation of the plan.........:rolleyes:
  11. imupsidedownfl

    imupsidedownfl LoanSafe Member

    Based on what the rep told me the 3% interest is for the life of the loan. She went down to 34% of my income which she explained was within the plan guidelines. I'll keep everyone updated on when I recieve my package. I'm pretty surprised at the speed this is all moving in.
  12. chasepmt2hot-firefighter

    chasepmt2hot-firefighter LoanSafe Member


    I agree....this is a wonderful rate. I hope it's for the life of the loan.
  13. flyingpuppy99

    flyingpuppy99 LoanSafe Member

    I would watch this. This is the same offer I recivied. They only down fall is they start reporting that your payments are late for 3 months. This will in turn raise you intrest rates and min payments on your credit cards.
  14. chasepmt2hot-firefighter

    chasepmt2hot-firefighter LoanSafe Member

    What did you do about the offer? Did you counter?
  15. flyingpuppy99

    flyingpuppy99 LoanSafe Member

    I have been trying to get a hold of her to talk to her about the offer and Its been over a week and a half since I left her a message. She wont answer her phone either.
  16. imupsidedownfl

    imupsidedownfl LoanSafe Member

    Okay, I got the FedEx package today. It looks pretty basic, they have a 3 month payment schedule at the $1930 they offered. They want me to sign the forbearance, give them my most current tax return, and re-submit the bank statements, paystubs, etc... then send back to them by April 4th.

    It says very clearly that if I make the payments on time they will "consider" offering a modification. Is that standard language? Should I push for something a little more concrete? I'm not sure what to do here.
  17. chasepmt2hot-firefighter

    chasepmt2hot-firefighter LoanSafe Member

    Why would they not protect everyone from the credit card companies rate hike due to credit ratings? Why is it that Chase can't give the very best service? Just like the person above stated her analyst said 34% was within their guidelines. What the hell is wrong with going to 31% for this person if it's the best you can do? Wouldn't you feel better as a person knowing you did the very best to possibly really help someone? Please who feel the need to have power or control at the expense of hurting and/or disappointing someone else has serious issues. They must not have any say so at their own home. Their spouse must treat them way beneath he/she for they to come to work and not want to give 100% of whatever can possibly be done to make someone elses life better. I wonder what went wrong in their own life to make them so unhappy to strangers. Chase needs to give mental evaluations to it's employees. They should feel great about changing lives, knowing someone's child will have a better home life, knowing they'll contribute to happiness a complete happy home. These people need help or need totally exposed to the media to knock them off their feet for their own reality check.
  18. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage


    Take it to the top...........

    JP Morgan Chase
    Jamie Dimon
    1(212) 270-1111
  19. chasepmt2hot-firefighter

    chasepmt2hot-firefighter LoanSafe Member

    Cat, I heard Jamie Dimon would just totally blow me off. Unless it was with a reporter along with her crew! If I ever got the chance to cut loose on Jamie Dimon, he might hire me. :) I'd clean up that mess of slackers in no time. The girl I talked to the other day sounded like she had a few pain killers after lunch. She wasn't right.
  20. Moe

    Moe Call 1-800-779-4547 Staff Member Loan Safe Mortgage

    I wouldn't be right either if I had to work with 300-500 files............I would have to far exceed the limit of Red Bulls per day to be perky after getting to the bottom of that pile.......:eek::eek:

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