Can Chase Still Foreclose While In A Trial Modification?
OR Can Chase Foreclose Instead Of Modifying My Loan?
If a trial loan modification is not approved as permanent at the end of the trial modification period:
- Can Chase request payment in full for the difference paid during the trial loan modification and the actual mortgage payment due on your original mortgage?
- If you are not able to pay the difference could Chase foreclose on your property?
These questions came up when I called Chase yesterday to check on the progress of my loan modification application and they read a disclaimer stating "During the trial modification they will report to the credit bureau that I am not meeting my payments."
Chase Mortgage Loan Modification Answer:
by Chase Mortgage Loan Modification Expert - Dan North
These are two very important points to understand about Making Home Affordable Loan Modification Programs. If you are turned down or given something different than you were expecting ask for a full accounting of why this happened (in writing).
1. Just because you have a Trial Loan Modification that you are paying on and even if you make all 3 payments on time you may not get that trail payment as your permanent mortgage loan modification payment. You may not get a loan modification at all.
If that happens Chase will offer you a repayment plan that will increase your monthly mortgage payment. You should turn this down if this happens and ask for a new loan modification outside of the Making Home Affordable Program (if you did not qualify for HAMP) or a forbearance that will tack the missed payments or delinquent amounts onto the back end of your mortgage and grant reduced payments (what ever you can afford) for a period of time (2 - 5 years is a normal period that lenders approve on forbearance plans). Also request that all penalties, charges, fees and extra interest fees on delinquent amounts be waived or forgiven in full.
2. If Chase already started the foreclosure process on your property before you requested your Mortgage Loan Modification the time clock will continue to run but they will not take the next step. Chase will not schedule a foreclosure sale date while the Trial Loan Modification is still active or in negotiation and if one had already been scheduled this will be postponed. If the permanent modification is disapproved and you do not get your new formal requests in immediately the foreclosure procedure will resume from the point that it left off at. You may also want to seek the help of a bankruptcy lawyer
for other options to delay foreclosure on your home and assess your financial situation.
So to be very clear on both your questions the answer is yes Chase can ask to be repaid for the full amount of the mortgage payment even though you were in a trial modification and Yes Chase could foreclose if you cannot make the payment that is being demanded.
Will The Trial Modification
Affect My Credit Rating?
If you make the trail loan modification payment you will be reported as not making the required full payment and will take a credit hit. This can later be repaired after your permanent loan modification is approved but is time consuming or you have to hire someone to handle it for you.
How To Get Through The Trial Loan Modification Period With No Credit Hit
The trick is to continue to pay the full amount of your mortgage for the three month trial until the permanent loan modification is approved. Once the loan modification is approved as permanent there is no hit to your credit on the reduced payments.
If you can not make the full payments then you are going to take a credit hit no matter what but if you are in a trial loan modification you can fix the credit hit later if approved.
The first thing to know is you can repair your credit, even after modification, foreclosure, bankruptcy or missed mortgage payments.
The easiest way to do it your self is use credit repair software. You can automate the credit repair process to remove negative items even after loan modification, foreclosure, bankruptcy and late or missed payments.ORDER NOW - Repairing Your Credit After Loan Modification, Foreclosure or Bankruptcy
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