CHAMP Trial Period Plan Received today

interesting...

LoanSafe Member
Dec 28, 2010
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You have to ask yourself why they would put you on a trial plan to begin with... what's the purpose of that other than to try to generate fees for the servicer? It's a requirement for HAMP kickbacks, but why would a bank's own plan require this? It doesn't make sense... either you can make the payments or you can't. If they're really working with you, why wouldn't they just send you a contract and get it done? Maybe someone in the industry can explain this "trial period" thing? Sounds like they're just trying to squeeze out some money during the foreclosure process. It's definitely not in your best interests to make trial payments. Do you sign a contract when you begin these trials? I'd look long and hard at those things....if there's no garuntee of a mod, why pay them anything?
 

rainy_day

LoanSafe Member
Aug 25, 2010
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interesting... - I'm sorry but I can't agree with your opinion.
Of course it might appear strange that CHASE would now start making trial payments a requirement for in-house mods.
One reason could be that they want to copy the HAMP program 1:1.
Another reason could be that they see that many mods fail within the first three months, so they don't want to do all the paperwork before they know that there is a good chance that the mod will be a success.
I think trial periods have changed dramatically. In the past you were signed up just with stated income, which later caused all the problems.
They now verify everything before putting you on a trial, which makes it much more likely to receive a permanent mod at the end but also makes it much more difficult to be put on a trial plan.
Having that said, I think being offered a trial plan is already partially a success.
If you want to save your home, you have to do something. So if you have to go through a trial period in order to receive a permanent mod, you might just as well do it.
Remember at this point the banks are not legally bound to do in-house mods.
 
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kat99

LoanSafe Member
Aug 14, 2010
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interesting -- I totally understand your cynicism and have all these same questions myself but unfortunately we're playing THEIR game, not the other way around. I did not have to sign a contract for the trial plan, just send the first trial payment, as I think is the same with others in the CHAMP TPP. There's no guarantee of mod of any type for sure. Only time will tell if the trials turn into final mods. All the more important to keep each other updated and learn from the experience of others participating on the forum.
 

alston1421

LoanSafe Member
Nov 18, 2010
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Reston, VA
Hi kat - how many contacts were you "assigned" with the Chase executive office? In not even 3 months, I've had 3 contacts... I can't figure out why they constantly "reassign" my account to someone else in the "executive office", my account has gone from the executive office in Chicago to Dallas and now, this week, to Columbus OH. Chicago's contact was a Chase rep, Dallas was EMC, and now Columbus is Chase again... I'm hoping I'm in better hands with Chase since I think that EMC has to get direction/approval on alot of the stuff since Chase owns EMC.

Keep us posted on your permanent mod...

I would agree with rainyday and kat. We are NOT in the drivers seat in all this (unfortunately!) so if the lender requires a TPP for several months its in our best interest to pay them! Don't we want to be putting our best foot forward and with the least amount of resistance. Really, we as borrowers have to pick our battles with the lenders in this whole modification saga.... If the requirement is to be on a TPP, then that's one more relatively sensible hoop we have to jump through in order to obtain the modification.

And yes, I think lenders (including Chase) have changed their operations drastically since rolling out loan modifications in 2009. Now they require documentation up front before folks go on the TPP, so that after the TPP payments are met, I think really the lender just finalizes the final mod paperwork on the modification that they've already qualified you for. For those of you who weren't dealing with this loan mod crap in 2009, this is a drastic improvement in operations and is for the better of the whole loan workout and modification process.

In 2009, I was working with my lender under a repayment agreement (whereby I'd pay my regular payment monthly PLUS an extra amount x24 months in order to make up for the 2 payments I was behind). I was adhering to this agreement for 3 months when chase CALLED ME one day saying I "qualified for a loan modification". In order to move forward, I had to be taken off the repayment agreement in their system and then they took my stated income and financials over the phone and put me on a TPP (which was $800++ less than my original payment amount) in about 30 minutes. I paid the TPP (based on stated income and financials) for 13 months, reassured by phone reps month after month that the "Mod was in process and all was fine", then was denied for "insufficient income" due most entirely to their incompetence (never rec'd all my income docs). So my case is a perfect example of how putting borrowers on TPPs based on stated income just isn't the best game plan.

Now its interesting that the REST report I got 10 days ago shows I qualify for a payment amount that is exactly 2 whole dollars less than the TPP that Chase qualified me for in 2009. My point: the Chase TPP I was on was affordable and sensible, the REST report clearly proves that.
 

interesting...

LoanSafe Member
Dec 28, 2010
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Takes two to play, and the rules are clearly written in the contracts you sign. Make sure you analyze your options and theirs. If you have nothing in writing what's to prevent them from just claiming you didn't make your full payments and then tacking on fees later? I still think they're trying to squeeze what they can out of you while they process a foreclosure. If a foreclosure is not in their best interest then you certainly have some leverage... be sure you know whether you have a recourse or non-recourse loan. Read your original contract carefully. Unless you refinanced, chances are it's a non-recourse. This means the bank assumes all the risk. If you think it's going to end up in foreclosure, your best option is to live rent free while they take forever and a day to process the foreclosure. Meanwhile you can save up for lawyer and contest the foreclosure process which prolongs it even more.
 

kat99

LoanSafe Member
Aug 14, 2010
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fair warning, interesting. I think that their intentions will be clear after the 3rd trial payment at which point, I'll be saving my $. My lawyer is waiting in the wings should it turn out as you predict.

alston - I had several EO reps assigned before finally getting one who I've had for a couple of months now. No idea why they reassign so much...
 

interesting...

LoanSafe Member
Dec 28, 2010
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The other thing you have to consider is the servicers could be submitting this as a finished HAMP modification... collecting their guv'ment kickback... all the while putting you on their own "in-house mod". To date not one servicer has been penalized for breaking any kind of rule other than to not give them broad statistics... statistics that have been incorrect... (they're currently investigating the source of this fraud) Look at the final docs very carefully. They may reserve the right to cancel the mod at any time, or other such nonsense.... they could also have clauses that require you to waive your rights...
 

rainy_day

LoanSafe Member
Aug 25, 2010
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interesting - regarding your theory, it might be true that banks like CHASE tried this in the past and messed up a lot of other things. But I really think there has been a change in the middle of last year.
I never had a Relationship Manager assigned to my account, but then out of nowhere I had one assigned at the end of last year, who even called me.
Also, a few days after I was approved for CHAMP trial and received the FedEx letter, I received the HAMP denial letter.
So let's see if I can succeed in obtaining a permanent. Kat99 is a little bit ahead of me, so let's see how it goes with her.
 

interesting...

LoanSafe Member
Dec 28, 2010
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To be honest, I am a bit paranoid. Used to be that the banks were pretty predictable... they're so big that they have systems in place that follow certain static rules/steps... but in the case of mods, their systems all seem broken down.
 

alston1421

LoanSafe Member
Nov 18, 2010
105
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Reston, VA
Hi kat99- Any news on making your trial payments and getting the permanent mod?

The HAMP solutions center that worked so well for you has been useless for me. I found out 2 days ago that my account has been with them for about a month and that my case analyst is "new and in training" (my luck!!). Yesterday I requested to be assigned to the case analyst you had with them, Joe Madrid. Now they are looking into that and have sent the request to someone for approval... *sigh*
 

kat99

LoanSafe Member
Aug 14, 2010
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hi alston - i received a call from Exec office today saying that they are assigning a relationship mgr to escalate my case to move it to the next phase and that I should be hearing from the RM within the next 5-7 days. I mailed my third trial payment earlier this week but it hasn't been posted to my account yet. Sorry to hear that HAMP Solutions hasn't helped you.
 

alston1421

LoanSafe Member
Nov 18, 2010
105
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Reston, VA
Hi kat - thanks for checking in. I tried to get my case with HAMP solutions assigned to Joe Madrid, the guy you recommended, but it never worked. HAMP solutions just talked to Chase and found that I "can't qualify for HAMP due to investor restrictions on my loan". I was evaluated for HAMP, the investor and servicer participate in HAMP but I "can't qualify"... still trying to figure out what that all means.

I am not sure if I should be getting back on the merry go round for a 423rd time, or getting off the merry go round and going to seek legal counsel on the grounds of detrimental reliance and predatory lending. I've been talking to the folks at REST Report matters and they continually note that my situation is very different from nearly all other loan modifications in that today, 90%+ of my delinquency, was created by Chase.
 

interesting...

LoanSafe Member
Dec 28, 2010
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I was able to find my investor's name through MERS. Check your title at your property records web page. (these are regional... usually by county but the lookup is free and instant) If MERS is on there, you can check the MERS database at their site to see who they have listed as "investor" and as "servicer". It's all instant and free online.
 

kat99

LoanSafe Member
Aug 14, 2010
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hi rainy day - after 3rd trial payment, nothing, so I called and now they've said investor denied for not enough income after denying HAMP for too much income. So what is it, too much or not enough?? Mad as hell and not gonna take it anymore. Just started talking to Levi about Restreport to fight back. What's going on with you?
 
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rainy_day

LoanSafe Member
Aug 25, 2010
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hi kat99 - Thanks for asking. I am so sorry to hear what is happening to you! I was actually getting quite optimistic, because there have been a couple of posts of people that didn't have to submit any new financial docs and received their perm docs automatically/without any problems. So it seemed as if there was a new system being implemented by CHASE. Your post however turns it all around. Did you see you 3rd payment posted? I sent my 3rd payment in and I am checking online every hour.
Looks like interesting...'s paranoia wasn't that unfounded after all.
Maybe they made a mistake... I wish you all the best. Keep us updated!
 

rainy_day

LoanSafe Member
Aug 25, 2010
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kat99 - It is done! I just received my signed docs back. I wish you would also be successful. Your posts were such a mental support.
 

kat99

LoanSafe Member
Aug 14, 2010
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rainy day - that's great news, I'm very happy for you. All your hard work has paid off! I'm glad we were able to support each other during these troubled times. Don't worry, I'm still fighting. God bless....kat
 

Cat Damiano

Mortgage Wars
Sep 10, 2007
10,541
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kat99,

How is everything going with the modification process? Just checking in to see how you are doing.
 

kat99

LoanSafe Member
Aug 14, 2010
99
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Hello Cat and LoanSafers -- Today I received the final signed modification papers from Chase, one year after missing my first payment and applying for a loan mod. These past couple of months since my last post, I hired a lawyer and basically went silent on the boards just to preserve my health and sanity. Chase was about to deny the final mod and I knew that I had another long fight ahead. My lawyer prepared for a lawsuit and took over all communication with Chase and lo and behold, the final mod was approved. The new terms save me about $300 a month, not a large amount to be sure, but all the arrears were put to the back of the loan and all late charges were removed. I have great respect for those of you who are going through this hideous process on your own but I was done with Chase and never want to speak to them as long as I live. In three years, my youngest son will graduate from high school and I will sell this house and downsize to a condo or townhouse someplace where the cost of living doesn't put working class people in the poor house. At least now, I have a time horizon and hope for a simpler life. That's my story and I'm sticking to it! Good luck my brave friends, and God be with all of us...kat