Washington State Denied Modification

WashingtonSkyy

LoanSafe Member
Aug 3, 2014
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I posted this on somebody else's thread, and can't figure out how to delete it. Sorry for hijacking the thread!

Hello all!

I recently posted over on the HAMPster wheel page, and was directed to some of these forums. I currently have a loan with Chase and live in Washington state.. The loan was originally through Met Life, it was then sold to Chase in 2012-2013. I am going through foreclosure, and want to know what options I have. According to the land records of my property, there is no sale date, according to chase, there is no sale date and I am currently in "suspended foreclosure". I was recently in Active foreclosure, but applied for a modification. They came back and denied my modification, stating I didn't make enough money. I called and asked if I could re apply, and if that would stop the foreclosure process again, and the representative told me that it would not stop the foreclosure process this time, and that foreclosure would continue to happen even while applying.

I just recently talked with a specialist again and updated my income amounts, and debts, and will be submitting another application for a modification, including my wife's income. I really do want to keep the house.

Some more info, I am 20 months behind on my payments, I went through an unemployment forbearance and paid on that for 8 months while unemployed.

Please let me know anything that I am missing, or that I could do to stop this foreclosure once it goes to active again, and to keep my home.

Also, I'd like to know who I should attempt to contact, if I need to contact a lawyer or attorney or contact somebody to help me find out my options, and go over things. I'm very new to all of this, and have 1% of the knowledge of all of this that I should have, and am at a complete loss on where to start. I purchased my home when I was 22 years old with my wife, I'm 26 now. Excuse my lack of understanding of a lot of the technical things.

Thank you!
 

WashingtonSkyy

LoanSafe Member
Aug 3, 2014
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I also should add that I filed a complaint through CFPB (per suggestion on the other thread), and received an urgent letter today from somebody with Chase. They simply stated they tried calling me about the question and to call them back. Shouldn't they be mailing me a response to the question? Is there anyway to combat this to get a written statement from them?
 

pennygram

working for consumers
Sep 29, 2010
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You stated that your denial was due to lack of income. Is that what is says specifically? Did you get the amount they determined was income.

Did they give you an appeal process in the denial letter? if they did then did you appeal? If they did not then send them a NOE stating that the denial did not contain an appeal process and you want to appeal the decision.

Did they consider any and all loss mitigation options?

If you loan mod originated prior to Jan 10, 2014 then yes you can apply again. Look for my thread on this.

If your loan mod was after Jan 10, 2014 AND they considered you for any and all loss mitigation options then that may be a big problem.

need more info...
 

WashingtonSkyy

LoanSafe Member
Aug 3, 2014
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I received a letter saying "We are unable to offer you help through the federal Home Affordable Modification PRogram or any additonal options by the investor or insurer of your loan.

This decision was confirmed through a second level of review.

After reviewing the financial information that you provided, we've determined that you do not have enough of an income surplus for us to approve a modification.

We are unable to approve a modification that would reduce your monthly payment so it is within the acceptable range for this program."

It also states "If your property is located in any other state and you believe any of the information that was used to determine your eligibility was incorrect, you have 14 days from the date of this letter to send us written detailed reasons why you disagree with the outcome of your application. You may be asked to send documentation to support your reasons"


Would that 2nd portion be considered the appeal process?

They do state in the letters that I can reapply, and this process started several months ago. I'm unsure of the actual date, I believe it may have been after January 10th though.

They sent me a letter shortly after detailing my income amounts, and there are a few things that seem kind of off...

First, they say that my Principal and Interest payment Before Modification was 1158.34. For 2 years I paid $1598.xx so this seems wrong. Unless I'm not looking at that portion of it correctly.

They say that my monthly net income was 2200. They state that my monthly expenses are 2300. Does this mean I was declined for just under $100??

They state that I can email their dispute email, I may do that and send a letter as well. Unsure if I should appeal it or not.
 

WashingtonSkyy

LoanSafe Member
Aug 3, 2014
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And also, considering my lack of good writing skills (not sure how to compile an appeal letter that would help my situation), I think I may have to get in touch with an attorney. Just have no idea where to start. I'll start looking for people who provide free introduction advice and go from there I guess.

Would it be smart to contact a housing counselor from the office of the attorney general website for Washington?
 

wanda robo

LoanSafe Member
Sep 29, 2012
3,940
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Hey Washington Skyy,

Glad you took my advice, you'll get better info on trying to save the house, over here than on the Wheel. Was the $1598 payment including taxes & insurance? All they were quoting was P&I. Did you get a loan mod, before, or was this your first request? Did you lose any income since the loan was originated, cause your debt to income isn't making sense.
 
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wanda robo

LoanSafe Member
Sep 29, 2012
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Sorry, it's a little early for me to be posting. Just reread your post on the Wheel and remembered you were unemployed & now have new employment. Just curious, though, if your income is a lot less than it was when you got the loan. If you don't have your origination docs, then when you get the response from your QWR, you want to look at your original credit application, very carefully. If the income listed on the application was inflated, then your original loan was a no income verification loan, and that may work in your favor, if you have to file a lawsuit, to stop the foreclosure sale. Just a thought.
 
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wanda robo

LoanSafe Member
Sep 29, 2012
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Pennymac is the expert on this. I don't know if there is a triggering event that has to happen to be able to send one. I'm thinking you can send one because you got denied, but not positive. There are tons of templates online you can follow. Personally, unless Pennymac chimes in, I would say sooner rather than later. However, since you filed a complaint with the CFPB, you may get that info when Chase responds to that, if you want to wait. I got the same response from my QWR, my CFPB complaint & my debt validation dispute letters. There were times when I had 3 things going at once. I personally have found the more work you make Chase do, the more likely they are to mess up.
 

pennygram

working for consumers
Sep 29, 2010
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First you have to get a handle on your dates because they are URGENT to determine if you completed a package before OR after Jan 10.

All letters have to be sent certified mail return receipt requested to the designated address for RFI or NOE or QWR in individual envelopes

letter 1:

To Whom It May Concern:
Identify all loss mitigation options that are possible on this loan. This includes options to
keep the home and also those options that do not include keeping the home.

Thank you for your cooperation in this matter.

letter 2:

Pease provide the following information regarding the above referenced loan.

The Pooling and Servicing Agreement in its entirety or you can provide the following
parts of the PSA:

The portion of the PSA that includes any discussion or mention of loss mitigation options;

The loan schedule (however named) that shows our loan is included in the PSA. Note this is not a request for a re-created loan schedule but
is a request for the actual loan schedule listing all loans, including our loan, so we can determine if it is in the PSA that
you send to us.

This information is needed, as we want to make sure we are being considered for all loss mitigation options that are available to any borrower
of any loan within the PSA.

Thank you for your cooperation in this matter.

letter 3:

To Whom It May Concern:

Please provide to us a copy of the complete servicing file for the above referenced account.

Thank you for your cooperation in this matter

letter 4:

To Whom It May Concern:

I have received your denial letter dated (date) and believe you denied my loan modification in error.

First I believe you did not properly calculate my income. Please provide to me the calculation base you used and how you arrived at that base income.

Second I believe you did not give me any appeal option as required by federal law.

Third I believe you did not consider me for ALL LOSS MITIGATION OPTIONS. You may have misunderstood what I was applying for and may have not considered me for any forbearance plan, short sale or deed in lui since you denial letter failed to state exactly what options i was indeed considered for.

I ask that you investigate this error immediately and provide to me your results along with any and all documents, representative notes, phone recordings, etc that you may have used in your investigation.

Letter 5:

I have received your letter dated (date) providing me with income information. I beleive the income you used was inaccurate. I am enclosing my true income with this letter.

I ask that you investigate this error immediately and provide me with your results along with any and all documents, representative notes, phone recordings, etc that you may have used in your investigation.

For the last part review your mortgage statements to determine how you payments have been applied month to month. Post this as son as you can so we can see what to do.....
 

WashingtonSkyy

LoanSafe Member
Aug 3, 2014
38
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Pennygram,

Thank you so much for these letters. I will have them sent out first thing Monday morning. Now that I've thought about it, I'm fairly positive I applied for a modification PRIOR to Jan 10th, and was declined then as well as I had zero income and was taken off of Unemployment as the government benefit ended Dec 28th 2013. But then again I could be completely mistaken. I'm going to call and ask when my first initial request with. I highly doubt I completed the packet by January 10th though.

I found the address to send to QWR
P.O. Box 183166
Columbus, OH 43218-3166


I also received a letter stating:

"We received a request on August 04, 2014 and expect to have an answer or a status update for you by August 21, 2014."

I'm assuming this is stemming from my CFPB complaint.

In regards to your question about the mortgage statements. I'm not sure what you mean and what to post.

There are a few things that are stated on here that are odd..

"01/09/14 Funds Applied 651.84
01/09/2014 Unapplied cash 651.84
01/09/2014 Funds Applied 1595.58
01/09/2014 Unapplied Case 1595.58
01/09/2014 Payment 1595.58 Principal 299.97 Interest 858.37 Escrow 437.24"

Hope this helps.

Thank you again.
 

WashingtonSkyy

LoanSafe Member
Aug 3, 2014
38
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Also the most recent statement has

06/26/2014 CHARGE FOR SERVICE $300.00
06/26/2014 CHARGE FOR SERVICE $784.00
07/03/2014 LATE CHARGE WAIVED $63.82
07/03/2014 MORTGAGE INSURANCE PAID $155.55
07/15/2014 CHARGE FOR SERVICE $14.00
 

pennygram

working for consumers
Sep 29, 2010
583
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See when was the last time the mortgage company rec'd a completed loan mod package from you - before or after Jan 10. IF you establish that you have not completed and mailed a package to them get on it right away. They may give your some nonsense that they have already processed one for you so be ready to fight back on that issue. The new RESPA is clear that this takes effect Jan 10,2014 so other loan mod apps prior to that do not count.

Assemble your mortgage statements for the last year. Take each mortgage statement and break it down. ANYTHING that doesn't seem right, write a letter for either a request for information or notice of error such as:

Request for Information

I received my mortgage statement dated (date) and noticed that on 6/26/14 you added a "charge for service $300.00". Please tell me waht this charge is for and supply to me any and all bills, receipts, etc that supports this charge.

Do one for each of the items you see a problem with.

Just to clarify on your letters: Make sure you are dating them, adding the loan number and telling them to mail your the response of the investigative results to your designated address which is (address).. the sign the letters.

wishing you the best.
 

WashingtonSkyy

LoanSafe Member
Aug 3, 2014
38
2
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Okay so if I understand this right, if I applied AFTER Jan 10, 2014, then we could be in trouble. If I determine that I applied BEFORE, then this new rule qualifies me?

Also, I've noticed they charged me a $14.00 fee every time I made a payment. I was never advised there was a fee to make payments over the phone. I specifically remember them telling me there was no fee. Should I send a letter for each of those?

Am I able to compile all of these letters into one envelope or should they be separate? Just trying to save a few bucks any way I can.

Thank you!
 

WashingtonSkyy

LoanSafe Member
Aug 3, 2014
38
2
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I should add to this, as this might solve a lot of the questions, Chase has told me that I'm eligible to reapply. Although they did say that foreclosure would continue even when my application goes to underwriting. They said it wouldn't stop the foreclosure, and that I was only eligible for it stopping the process once, which happened after I officially completed this package a few months ago.
 

wanda robo

LoanSafe Member
Sep 29, 2012
3,940
634
113
NJ
Washibgton Skyy,

Are you getting little postcards in the mail that look like junk mail? I was charged $14 p/mo by Chase for a postcard sent by MCS. You have to call in every month on the number on the postcard to verify the home is still occupied.
And from your above post, they are charging you mortgage insurance, so your loan is FHA, correct?
 

WashingtonSkyy

LoanSafe Member
Aug 3, 2014
38
2
8
31
Washibgton Skyy,

Are you getting little postcards in the mail that look like junk mail? I was charged $14 p/mo by Chase for a postcard sent by MCS. You have to call in every month on the number on the postcard to verify the home is still occupied.
And from your above post, they are charging you mortgage insurance, so your loan is FHA, correct?
Yes it's FHA. And really? $14 for a postcard? I call in every week confirming I live there.
 

wanda robo

LoanSafe Member
Sep 29, 2012
3,940
634
113
NJ
Yep-property preservation fee, trust me, my rep. knew the house was occupied, too. You see, they get reimbursed by HUD FHA for everything they charge you when they file their claim with FHA. Those large charges, have me concerned though, because they may be attorneys fees. Have you contacted HUD FHA National Servicing Center, yet? Just a thought, but in my case they were of no help, at all. But maybe it would make you feel better, just to talk to them & see what they say. You are definitely going to have to document everything from now on, and if things are still fresh in your mind about the previous events, you may want to write out your notes on that too. They must follow very specific FHA loss mitigation guidelines, or you can use that later down the road.
 

WashingtonSkyy

LoanSafe Member
Aug 3, 2014
38
2
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31
I'm going to send all the letters via certified mail today. Since it's currently in "suspended foreclosure" will sending these letters make them actively try to pursue foreclosure again? Just worried if I should start the battle or try to ride it out until something else happens?
 

pennygram

working for consumers
Sep 29, 2010
583
88
28
you need to play it as it goes - also send them a letter asking them what does 'suspended foreclosure mean.