Will Chase modify our loan if we can afford the payment?

blissy

LoanSafe Member
Apr 1, 2010
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My situation is we have a jumbo loan that is $500k underwater. We got an interest only 2% loan mod in 2010. They deferred $400K to end of loan. Unfortunately in 2 1/2 years it steps up and eventually payment goes up $5k per month which we can't afford. When I run the numbers on the payment of a piti my payment goes up because the new payment would include principal also. If I submit docs that say I can afford the higher payment will they deny me because I can also afford the payment I have now since it is interest only. I called chase and they said they would consider the mod as a new mod and the loan has been preapproved for a principal reduction. Unfortunately they said since it is investor owned it does not qualify for DOJ settlement.

I want to get principal reduction and fixed rate now because I see home prices going up as will interest rates.

Any help appreciated!
 

Evan Bedard

Call 1-800-779-4547
Loan Safe Mortgage
Aug 26, 2007
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San Diego, California
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Hey Blissy,

It definitely would not hurt to apply for a loan modification at this point, it is just be very difficult to achieve assistance when the loan is currently unaffordable. We have seen this on many occasions in the past when a homeowner will apply for a loan modification knowing their "interest-only" loan will adjust in upcoming years. Lenders generally want to see a current financial hardship and typically do not consider this until the payment adjusts. Does your current monthly payment exceed 31% of your gross monthly income?
 

blissy

LoanSafe Member
Apr 1, 2010
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My income is just enough to qualify for the loan if they give me a piti payment. That payment would be 31% of my gross income. Therefore my income exceeds what I need to pay this interest only payment.

I am current but thinking of not making next two payments so I show hardship...
 

blissy

LoanSafe Member
Apr 1, 2010
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Can Chase offer a 40 year loan mod if I have had my loan 8 years already?

I want to modify my 8 year old loan and wondering what in house or Champ guidelines say about extending to 40 years? Would I only be eligable for 32 years or can they make it 40 years if necessary?
 

Cat Damiano

Mortgage Wars
Sep 10, 2007
10,541
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48
Colorado
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I want to modify my 8 year old loan and wondering what in house or Champ guidelines say about extending to 40 years? Would I only be eligable for 32 years or can they make it 40 years if necessary?
That would be entirely up to the investor and if they even allow a term extension to 40 years, many do not.
 

walkin

LoanSafe Member
May 1, 2012
361
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I want to modify my 8 year old loan and wondering what in house or Champ guidelines say about extending to 40 years? Would I only be eligable for 32 years or can they make it 40 years if necessary?
Like Cat said, it's up to the investor. My loan was almost as old as yours. What they did for me was reduce my interest rate by about 2 percent, added the missed interest payments to the principal balance (or something like that), and changed it to a brand new 40 year loan (starting at the time of final modification approval). With the escrow shortage wrapped into a 5 year payoff plan, added to the new PITI payments, at the end of the day, my monthly payment went down ~$200/mo. I may be mistaken, but it appears that my modification was Apollo, or sumthin like that. It's actually a pretty horrible deal, but it is working out for me right now. Best of luck to you. Mine was Chase servicer with Fannie investor.
 

Cat Damiano

Mortgage Wars
Sep 10, 2007
10,541
39
48
Colorado
www.loansafe.org
Like Cat said, it's up to the investor. My loan was almost as old as yours. What they did for me was reduce my interest rate by about 2 percent, added the missed interest payments to the principal balance (or something like that), and changed it to a brand new 40 year loan (starting at the time of final modification approval). With the escrow shortage wrapped into a 5 year payoff plan, added to the new PITI payments, at the end of the day, my monthly payment went down ~$200/mo. I may be mistaken, but it appears that my modification was Apollo, or sumthin like that. It's actually a pretty horrible deal, but it is working out for me right now. Best of luck to you. Mine was Chase servicer with Fannie investor.
Yes, and in some cases they will only amortize the loan over 40 years, but have it due at the end of the original term using a principal forbearance.