Lost My Job & Need Advice How To Deal With Chase

Foret

LoanSafe Member
Feb 2, 2016
20
6
3
45
Hi Friends,

I am back to this great forum asking for help again. Some of you might remember my other story on the following thread: http://www.loansafe.org/forum/threads/citi-stopped-paying-2nd-need-advice.91014/. I was one of those very fortunate to have a success story settling my 2nd morgage thanks to the incredible advise of so many members on this forum!

I am back again asking for assistance as I cannot imagine a better place to be. I very recently lost my job and I am hoping to turn this into an advantage by using it as a leverage to force Chase to either allow me to refinance or do a modification. But I am not sure if I even stand a chance. I have tried twice in the past and Chase told me that I did not qualify for refinancing as my loan is underwater nor a modification as I do not qualify for HARP. They also told me that Wells Fargo is the investor and did not approve. Now that I don't have a job, do you think I might have a chance to get something done?

I have been reading over and over on the forum trying to educate myself about both refinancing and loan modifications. I am however still confused and not sure what direction to go. I don't know know what to ask for. Before I start dealing with Chase, I am hoping for guidance. The details of my loan are:

-Loan Balance Now = $277,822.53
-Interest rate = 6.25%
-Mortgage Payment without taxes and insurance= $1446.99
-Past Due if any = $1446.99 (I did not pay December yet)
-Home Value = $246K as per eppraisal.com, $278K as per Zillow.
-Mortgage Servicer: Chase Mortgage
-Investor: Wells Fargo

As part of my severance package, my company will keep paying me my full salary for 7 months along with my bonus. My husband is still working, but he has a different account and he is not on the Chase mortgage. However we do file taxes jointly: I am not sure if this will be an issue if they see his income.

From what I understand from the forum, "too much income, you don't qualify and too little income you don't qualify". So I am at loss how much money to reflect in my account to convince Chase. I have even tried the https://checkmynpv.com/ tool, but with no real clarify of how much to show in my account. Few questions I have:

1-Given my monthly mortgage payment, any idea how much $$ I should show in my account at all after all expenses are paid?

2-Is it better to get the the severance payment deposited in a different account? I also have not applied for unemployment as I am afraid that would be extra $$ that might disqualify me?

3-Is it absolutely required to show 2 years of taxes? I am afraid doing so as they will see my husband's income. Regardless of the route (refinance vs. modification), is refusing to show taxes obligatory?

4-Following the advice I read on the forum, I stopped paying this month (December) hoping that will help get Chase's attention. It's the 1st missed payment and Chase has already called. Any advice how to deal with them and how to respond?

I so desperately want this to work that I don't even want to look for another job yet. But as mentioned, I don't know if I stand a chance.

As always, thanks in advance for the guidance and feedback!

Regards
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,850
466
1,000
49
Southern California
www.loansafe.org
Hello Foret,

The main problem you are going to have now in trying for a loan modification is that you have no job and or permanent income. Mortgage servicers like to see that you have a permanent job with steady income before they will grant a loan modification. They do not consider severance income and or unemployment as permanent income. Hence, most likely, you will have to be employed to get help on your mortgage.

This also applies to a mortgage refinance. They want to see your employed, you have a goof credit score and also that you are making mortgage payments on time. With a job, and decent credit, a 30 day late on your payments might be acceptable, but once you go 60-90 days late, your chances diminish.

With that said, I will do my best to answer your questions.

1. Question: - Given my monthly mortgage payment, any idea how much $$ I should show in my account at all after all expenses are paid?

My answer: You will need to show that you do not have enough money to pay your bills and expenses, but also they will understand that you have not made a mortgage payment in "x" months, Hence, common sense will show that you can have the amount of your mortgage payment x's whatever months you have not made the payment.

2. Question: Is it better to get the severance payment deposited in a different account? I also have not applied for unemployment as I am afraid that would be extra $$ that might disqualify me?

My answer: How you shuffle money in accounts will make no difference. You have to be upfront and tell the truth if you do have unemployment income regardless because it would be mortgage fraud if you did not and they will find out during the underwriting process.

3.
Question: Is it absolutely required to show 2 years of taxes? I am afraid doing so as they will see my husband's income. Regardless of the route (refinance vs. modification), is refusing to show taxes obligatory?

My answer: You can refuse to show anything that you do not want to show. They will then most likely refuse to process your loan modification application. But as I stated, with no job, it will be impossible to get a loan modification.

4. Question:
Following the advice I read on the forum, I stopped paying this month (December) hoping that will help get Chase's attention. It's the 1st missed payment and Chase has already called. Any advice how to deal with them and how to respond?

My answer: You can either just ignore them until you are employed again or you can play the loan modification delay game which is sometimes called the HAMPster Wheel by submitting applications etc. Most people wait until they are in default (90 days or more late) to play that game.
 

Foret

LoanSafe Member
Feb 2, 2016
20
6
3
45
Hi Moe,

Thank you so much for reading and responding as always! I came back home from travel yesterday and went directly to the forum. I have to admit that I was a bit depressed after reading your response. I was so sure that I could turn losing my job into a good thing. Although it's not what I wanted to hear, thank you for telling me the truth! Now that I know I don't stand a chance, I might as well apply for unemployment and start looking for a job.

To make matters worst, I also found that Chase had sent me a letter indicating that my monthly payment is scheduled to be adjusted to $2,210.72 as of March 1st. I was shocked that I turned the house upside down looking for the papers I had signed and spent hours reading on the internet. It turns out that I have something called "interest-only payment for 10 years" and now my payment is up to be adjusted as the 10 years are up to include principal. I was so naive, ignorant and inexperienced back 10 years ago that I didn't even know what I was getting myself into. I always assumed that I had a fixed interest and fixed payment until the end.

The irony is that I fought to get rid of the Citi 2nd mortgage and I was so happy that I could finally afford to save a bit of money for my kids instead of paying for the 2nd mortgage. I thought I had won back then. But only to find out few months later that my 1st mortgage is actually going to go up. My payment is now going to be even much higher than what the 2 combined mortgages used to be. I can't afford to pay $2,210.72 a month. And all of this right when I just lost my job. It just seems like impossible to get a break...I just don't know what to do from here...totally desperate...

Foret
 

Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,850
466
1,000
49
Southern California
www.loansafe.org
Hey Foret!

You are welcome. Just so you know, you have options and you will make it through this. What I love about you is that you are realistic and also honest with yourself. This is important because now you "can see" your options and plan accordingly. Hence, there is definitely some light at the end of the tunnel.

The good news is that now you can save some money if needed be. Meaning you will not be making a mortgage payment for some time until you either get a loan modification and or some repayment plan that you can truly afford long term. That will only happen if they agree to it once you are employed.

If they deny you, you can hold it out as long as possible and save money longer. I have seen some people stay payment free anywhere from 1 year to as much as 7. Yeah, 7 years and no payment. But the average I would say is about 18-24 months.

Your husband's credit will not be affected since he is not on the mortgage. This can help in the future as you rebuild after these mortgage issues are settled.

I hope my advice helps you not feel desperate ;)
 

Foret

LoanSafe Member
Feb 2, 2016
20
6
3
45
Hi Moe - 1st of all I hope Micah is getting better; he is in my prayers...2nd Thank you for your response and trying to make me feel better! But I am still VERY confused :-(

I was under the impression that I do not have any options at all until I get a job. Right? I have been totally worried. Actually the truth is that I have been freaking out! I really do not want to lose my house. I got soooooo worried that I gave in and actually paid back for the missing month (old monthly $1,446 amount). As for March, the payment goes up to new $2,210.72 payment that I cannot afford. I don't know though if that was a smart move or not; but I am desperate and probably not thinking right. I am actively looking for a job, but no luck yet. My husband is self employed without a consistent income and we would rather save what he makes for the kids instead of pouring that too into the Chase blackhole.

Could you please help me understand the type of options you are referring to in your reply? Also do I really have any choice to continue NOT to make any payments at all? Yes I would love to save money for the kids, but can I do so without losing the house? Your note sounds so positive that I am hopeful...

I have been doing a lot of research, but all options I look into seem to lead to a closed door. I even called HOPE and spent about 2 hours with a HUD representative only to be told that I don't qualify for anything and that Making Home Affordable just expired. Basically she told me that I am at Chase's mercy :-(...

Has anyone else been in this situation and got any help from Chase??

Please help!!!
 

MD69107

LoanSafe Member
Oct 6, 2009
71
7
8
Maryland
Hi Foret.........from my own dealings with Chase......not much help...........They did offer a modification.......but they waited until a few days before the foreclosure was scheduled. I went 5 years without making a payment........not because I wanted to....because that was the only way to get their attention it seemed like. I was like you, did not want to lose the house......but in the end.......I did...........and it has been the best thing that could have happened to me.......Go back and read all you can on this site......Moe and the Loansafe team were the greatest resource I had. There is a ton of info on Chase on here.
 
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Moe Bedard

Call 1-800-779-4547
Staff member
Loan Safe Mortgage
Aug 10, 2007
26,850
466
1,000
49
Southern California
www.loansafe.org
Hey Foret!

Thanks for the well wished for my son Micah. He is getting better, slowly but surely.

Right, you will not get a loan modification until you are employed long term and stable. By paying your mortgage without being employed is not wise because you eventually will not be able to pay the mortgage as you mentioned and you will still be late and now won't have back up money in case you do have to move at a later date.

The key here is if you want to keep the home, you need to be working. Your 100% focus should be on finding a job and not worrying about the mortgage because you simply cannot pay it without a job, nor will you get a loan modification. If you do not find work, you will eventually lose the home so you need to understand this. There is no way around it.

Fear is understandable because you love your home and you don't want to lose it. But it will hurt you in the long run health wise and psychologically. You need to try to get over this by telling yourself that this is just a home, and the most important thing is you have your family and health first and a job later. There are plenty of home and places to go as MD69107 said above.

You see, most LoanSafe members feel exactly as you do and some ended up losing their homes. What they ended up finding out is that sometimes it is a blessing in disguise and a learning lesson. They also realize their homes and debt do not define them as a person because they are just things and material pursuits.