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Just approved for a Chase CHAMP loan mod.... do I have to accept it?

Discussion in 'Loan Modification' started by kittenmitton, Nov 21, 2011.

  1. kittenmitton

    kittenmitton LoanSafe Member

    I received word today that I was approved for a CHAMP loan modification, but when I found out about the $80K balloon payment, I no longer want any part of it - apparently my investor (Duetsche) doesn't "do" HAMP loans so the balloon payment was a bit of a surprise (my own ignorance, and my fault).

    I simply don't see myself living in my one bedroom condo for the next 40 years, and in fact, would like to get out in a few years or so. If I really scrape and save I can probably manage to make my payments and keep my head above water; to me, that's preferable to owing $80K when I want to sell. Heck, I'd rather do a DIL or SS. What steps do I need to take to refuse the loan modification? Can I negotiate with them at all?
  2. Cat Damiano

    Cat Damiano Mortgage Wars

    kittenmitton,


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

    Even with the HAMP modification in a good majority of cases there is still a balloon payment due at the end of the term, so it isn't just the CHAMP modification that has this. Unfortunately, Deutsche Bank as an investor does not participate in any of the government programs, several years back, they didn't even do any loan modifications.

    What state are you located in?

    There is a good thread discussion on the differences between short sales, deed in lieu, and foreclosure here;

    http://www.loansafe.org/forum/short-sale-outpost/43265-ss-vs-dil-vs-fc-comparison.html
  3. kittenmitton

    kittenmitton LoanSafe Member

    Thanks for the link! I'm in Illinois, Cook County. I'm not behind, but my second job will be substantially reduced, if not eliminated, early next year, and things are already tight, so I thought I'd get ahead of the curve and make my request. It's about a $300 reduction in what I pay every month, which is fantastic, but I'll never have $80K, nor do I want to stay here forever.
  4. Cat Damiano

    Cat Damiano Mortgage Wars

    You can always accept it and milk it until you are unable to pay and then decide what to do at that time.
  5. kittenmitton

    kittenmitton LoanSafe Member

    If I did accept it, short of losing my job (not likely), there's no way I wouldn't be able to pay my newly reduced mortgage. So at the point in time that I might want to get out of my place, I couldn't prove any sort of financial hardship, and thus couldn't do a SS or DIL, and would be forced to foreclose. And Illinois is a recourse state.

    Sorry to keep at this, it's just that I want to make the right decision... I really appreciate the advice.
  6. Cat Damiano

    Cat Damiano Mortgage Wars

  7. kittenmitton

    kittenmitton LoanSafe Member

    It's me, again. I mistakenly made a separate post about the TPP that I just received a couple of weeks ago (http://www.loansafe.org/forum/loan-...n-payment-question-total-noob.html#post372987) instead of adding it to this thread, so I'm posting my third question here.

    The person I spoke to at Chase in mid-November went over the terms of the TPP, and also said that I didn't have to make this month's (meaning, December's) mortgage payment, since the TPP didn't start until January 2012. He basically said the December payment would just be added to the back end of the loan, and that not making my December payment would give me some extra money for the holidays.

    I've never been late with my mortgage payment, even tho it's meant scrimping and saving, and I'm just concerned that somehow, not making this month's payment could put me in an awkward position sometime down the road. I contacted Chase again a week later and relayed the convo I'd had 2 weeks earlier, this time to someone else, and the woman said that they really couldn't advise anyone to not pay their mortgage.

    I would definitely love to not pay my mortgage for this month, as I have some medical bills I need to pay, but am I putting myself in a tenuous situation if I didn't pay my mortgage this month? Today's the last day I have to pay it...

    Thanks!
  8. Cat Damiano

    Cat Damiano Mortgage Wars

    If you have not received the permanent modification docs yet, and it makes you feel better to make the payment all that will happen is if it was already rolled into the mod, it will be held in a suspense account and applied where needed or they may let you decide what to apply it to. This is something that you will have to decide on.
  9. BigRed1

    BigRed1 LoanSafe Member

    Kittenmitton - We were approved for the HAMP TPP in May and had to make our first payment on July 1st. We knew that we couldn't make our June 16th payment AND the July 1st payment as well. We asked our rep about this and he said that, though he advised us to make our payment, it wouldn't really hurt us as we were already approved for the HAMP TP. Like you, we were never late with our mortgage up to that point...so, we decided NOT to make the June payment. We later found out that it would be rolled back into the loan anyway.
    Good Luck and Happy Holidays!!

    Big Red 1

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