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My Chase story!!! USDA loan

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

  1. InHISimage

    InHISimage LoanSafe Member

    Hello, I am so thankful for this site...great info and more importantly it makes me realize I am not alone! We bought our home in June of 2008 with Chase. Our loan is a USDA zero down and 6 % fixed, 30 year. We were doing great until our son went into Childrens Hospital last spring for a month. We were not able to work and then my husbands hours got reduced. Thankfully my son survived and we got back to work but husbands hours are still lower than they were. We started trying to get help when our son was in the hospital and saw that we might get behind. We got no help at that time. We did get behind and every time I call them they say something different. I could call 5 times in a row and they would each tell me something different. Finally in nov loss mitigation put us on a 3 month trial payment plan. We made one payment (which was only 200.00 less than regular payment). Then we got a letter that said we were no longer on the plan. I called and the man tells me that the wrong dept. put us on the plan and it is a "dead end". So he takes our info and says that we need the usda dept to put us on a plan. I never heard from them. I kept calling and they would all tell me that they did not have our file! Couldnt find anyone to claim our file. Oh and we would get allot of people telling us that their computer froze up and to call back the next day! Also everytime someone would work on a plan for us they would tell us to NOT make a payment or it would screw up the plan...and yes I have documentation from all these phone calls.
    I sent an email to the ceo. I got a response from the executive resolution office. They seem to be helping but I do not have an answer yet. We owe 363k (and zillow.com has it listed for 330k currently) on our home and our payments are 2540.00 per month including tax and insurance. We make 5500-6500 a month gross and the only other debt we have is a 269.oo per month car payment. We paid off the medical bills and our son is completely healthy now. We are both working full time but for the first 5 years of my husbands job he had mandatory OT..that is also what they based our income on at the time we bought the house. He gets some OT but not much. In July we called Hope Now and they started a file for us and recommended a forebearance and sent the info to Chase. never heard from them about the paperwork that Hope sent them. Hope gave us a counseling session over the phone that they said qualified for the counseling we might be told we are required to obtain at some point. So far the resolution team says they are trying to get us a mod and that it is being reviewed. I am praying for a success...I will keep you all posted..thanks for your support!
  2. dlynn0903

    dlynn0903 LoanSafe Member

    Go to your local housing counseling agency. DO NOT continue to deal with Chase!!!!

    Hello. The best thing I did was contact my local housing agency and was appointed a State certified housing counselor. USDA DOES NOT contact you and the only way Chase will contact you is there collections department. We have not been able to make payments towards our mortgage since December 2008 and we are still in our home. We have been in foreclosure for over a year. We have been denied a modification countless times. They do not want our home or anyone else's home but if you can not get approved by the USDA, you may have a choice and WILL lose your home.

    We have had ups and downs with our income and we still can not make our regular monthly payments and WILL NOT be approved for a modification unless it is strictly thru the USDA themselves. They only accept their in-house modifications which is you continue to make your same monthly payments but your interest rate is decreased and what you owe is tacked on to your existing term. THAT IS IT. You NEED to have an income that will show that you can make the same monthly mortgage payments and be able to pay your monthly expenses as well. I don't know the debt to income ratio off the top of my head, but your counselor will. As of today we are $60K behind on a mortgage balance that was $199K which now brings us up to owing $260K on a home that has been appraised at a Fair Market Value of $150K. That's the sad truth.

    If you continue with handling Chase on your own, you will get denied for every government funded program that is out there. The reps DO NOT KNOW that you have a USDA loan and is why they keep trying to work some modification and your file gets denied or conveniently "lost". Chase is unorganized and have been for 2 years with all of these defaulted loans and is why there is such a mess. The only thing these reps are aware of is that you are behind on your loan and they need to collect on what you owe and only have the resources on current government modification programs which are useless for us. So unless you can come up with making your same monthly mortgage payments, you may wind up out of luck. I'm sorry to inform you of that but that is what we have just come to find out ourselves. I suggest still going through a housing counselor though. They are 100% FREE and they are fully aware of what to do, who to contact and so forth. There are no fees EVER and you can find one local to you by visit the HUD.gov site. They will deal with Chase for you and will lessen the stress and aggrevation of talking to people who have gotten hired to act like they know what they are doing.

    Finally, Your last resort is to file Chapter 13 bankruptcy. The judge may be able to force a loss mitigation modification to lower your principal slightly reducing your monthly payment, but that isn't even guaranteed. The only reason I suggest filing as a last resort is if they never approve you for a loan and go forth with foreclosing and sheriff's sale and the home is sold, you will receive a 1099 at the end of the year with the amount of the taxes on the sold home that you will be responsible for to the IRS. That could be up to $40-$50K give or take depending on how much the home sells for that YOU will have to pay.

    DO NOT continue to do this on your own!!!!!! Good Luck!
  3. dlynn0903

    dlynn0903 LoanSafe Member

    BTW "Hope" was the first thing I contacted too and they were useless, never heard from anyone, etc. and its all because we were "charmed" with a no money down, low interest rate USDA loan that the government has not recognized that those individuals are in default as and have no way of getting the help that they need to avoid foreclosure unless they can continue to make the same monthly payment. I have been out of work for over a year so has many others in this Country, struggling to increase their income but they can't so their houses are foreclosed and we are left with no place to live. Our homes hat they took from us will sit and rot for sale for over a year if not more and for what? No one wins. We get stuck with the the bad credit ratings, possible bankruptcy, loss of dignity and loss of our daily lives and the government still sits pretty...
  4. leandra

    leandra LoanSafe Member

    Similar Case

    Glad your son is doing better InHISimage! My case is similar but sort of a cross between you and dlynn.

    Like many, my fiance and I were attracted by the USDA backed $0 down 5.5% fixed 30 year mortgage in early 2009. As first time homebuyers we didn't truly realize just what a bad idea it was and mostly thinking, "Hey, houses are starting to come to realistic prices again. This might be our only chance to own a home," since we live in the North East where housing prices are sky high.

    So we bought a house. Eventually we split up but still worked it out living in different parts of it (since neither of us could afford the payments solo) which was awkward but functional until he lost his job. So I had to start tapping emergency savings to make the payments. I called Chase to see what help I could get, and they had nothing. I don't think they understand some of us try to be responsible and get help BEFORE we're behind as they kept saying, "But you're still current..." "I won't be for much longer. My savings can't keep this up." "Oh, well you don't even talk to this dept till you're at least 3 months behind." When I kept pressing them, they told me even if I were behind I would not be able to re-finance nor modify because I had the USDA backed loan, and because I bought in 2009 I wouldn't be eligible for HAMP/HAFA options. I kept asking for help or what other options they might have to no avail until they got their wish and the savings ran dry.

    So I did the next most responsible thing I could think of and contacted a realtor to help me sell the home. If you can't afford to keep it, best to let it go. In the meantime the values had continued to drop, so I made sure to get one experienced in short sales as it was very likely we would not be able to get what I had paid for the house 2 years before. He also helped get me in touch with a real estate attorney experienced in these kinds of cases.

    To try and shorten this 3 year story, we've been on the market for the past year. Had a couple offers and what's holding up the entire process isn't Chase, but the USDA. I paid 250k for the house 3 years ago. They think it's worth 245k which is wrong considering houses on my street have been selling in the 180s (and my house is par for the course. Not bigger or newer. If anything, older). I had an offer for 220k, they countered 245k and buyer left. Took months to get another offer, this time only 185k, again they kept parroting 245k. My lawyer's been pushing them to get an updated BPO since theirs has expired, but the USDA negotiator basically refused and never returns their calls. My lawyer can't even get a hold of the negotiator's supervisor. And with this current offer, the buyer has waited months and is walking (we locked them into 90 days but now that's up). They're tired of waiting and I don't blame them.

    When the USDA refuses to check the current market value, refuses to return your lawyer's calls, and refuses to give Chase the blessing for the sale, what can you do? I suspect Chase is just as fed up, but their hands are tied since the USDA is the investor. At this juncture I feel like there's no point in putting it back on the market with this buyer walking. You're already in a hard place out of work, and the USDA is a giant rock. If they refuse to let you sell, the only alternative is some form of foreclosure. :/
  5. Cat Damiano

    Cat Damiano Mortgage Wars

    Hi leandra,

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

    I am so sorry for what you are going through, three years is a long time, and no help from USDA. If you have not already done so, you may want to give the HUD counselor a try like dlynn0903 has. Maybe talk to one to see if they are able to help. You can find one in your area here;

    U.S. Department of Housing and Urban Development (HUD)

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