Home
Search This Site
Loan Mod Blog
Qualify For Loan Mod
Qualify For Gov Mod
Do It Yourself
Loan Mod Info
Ask Mod Questions
Foreclosure Questions
Loss Mitigation
Principal Reduction
Contact An Expert
Legal Notices
Site Map
[?] Subscribe To This Site

XML RSS
Add to Google
Add to My Yahoo!
Add to My MSN
Subscribe with Bloglines

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."

Mortgage Loan Modification Answer:

by 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.

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.

See visitor comments For Can Chase Still Foreclose While In A Trial Modification?

Return to top of page


Pre-Qualify for FasTrac Hardship Loan Modification
Free pre-qualifying for FasTrac Hardship Loan Modification. No charge to find out if you qualify and what modification you qualify for.


See more Mortgage Loan Modification questions and answers like - Can Chase Still Foreclose While In A Trial Modification?



Can Chase Still Foreclose While In A Trial Modification?

Where To Go From Here With PNC / National City

Re-hired By Employer During Trial Loan Modification With
Chase. How Will This Affect The Trial Offer?


Loan Modification Home | Mortgage Modifications | Loan Modification calculator
Ask Modification Questions | Loss Mitigation | Short Refinance
Mortgage Foreclosure Questions | Contact | Legal Notices | Site Map
The Home Mortgage Loan Modification Blog | DIY Loan Modification Kit
Pre-Qualify for FasTrac Hardship Loan Modification

Home And Commercial Modification Help Nation Wide
Offices Locations: Missoula Montana - MT and Los Angeles California - LA CA


Comments for
Can Chase Still Foreclose While In A Trial Modification?

Average Rating starstarstarstarstar

Click here to add your own comments

Rating
starstarstarstarstar 		Trial Loan Modification For 11 Months And Repayment Plan
by: Anonymous

We have been in a trial modification for over than 9 months. Yesterday I received a letter from Chase with a repayment plan wich is not help.

I have no idea what to do.

The repayment plan would be good if the economy changes in the next 5 years.

Unfortunately we are in a landscape business which is being hit very hard. Our income can change at any moment. My boss called us saying that he definitely will have to decrease my salary.

Chase just sent me this letter for the repayment plan:
  • Next 5 years with a lower interest at 2.87% interest rate

  • Year 6 at 3.875% interest rate

  • Year 7 at 4.875% interest rate

  • Years 8 - 25 at 5.250% interest rate


Chase did not change the term of years for the contract, but I feel threatend by not knowing what is going to happen with my income since the company we work for is under the threat of closing.

If I signed this paper and the company closes, what piece of mind can I have?

If the company does not close and in 5 year we did not get any better financially I will be in a some situation that I am today.

Is there anyone that could give me an advice?


Hi this is Dan I moved this over to its own page see the answer at Trial Loan Modification For 11 Months And Repayment Plan
Rating
starstarstarstarstar 		Chase Refuses To Cooperate With Homeowner On HAMP Guidelines
by: Anonymous

I read your article on Chase Loan Modifications and what to do in the event you are turned down, so I got on the phone with Chase and they refuse to allow a review of my modification but only offer a re-payment plan with double payments.

I mentioned to them by Oregon law and the new Obama regulation that every homeowner has the right to have their denial reviewed and by Oregon law that they must have a phone conversation or meet in person, and they knew nothing of either.

Chase has denied my modification because they say I do not have sufficient income, which is false, and I have been making all my payments on time during the modification process.

Trial Modifications are a joke, the lenders provide no contact with the homeowner during the process, any contact must come from the homeowner only to get it is under review. Not once would they allow me to speak with the person handling my case nor would they let me speak with a supervisor.

If President Obama has plans to help homeowners stay in their home, how come the lenders don't know about it and refuse to cooperate?
Rating
starstarstarstarstar 		This is a reply to the last comment
by: Dan

I totally duplicate what you are saying. I does not seem right and you may have valid grounds for bringing a complaint against Chase for violating the HAMP Guidelines.

You can use the two links bellow to correct Chase. Basically you will be making a complaint against Chase on handling your Loan Modification. (If you need further help you can complete the on-line form and I will be better able to tell you what options you have available to you and what Chase has negotiated in the past.)

This is the escalation procedure set up by HAMP for non compliance from lenders

See question 8. What should a counselor do if they believe that a servicer is not complying with the HAMP guidelines?

Here is the on-line form to fill out Pre-Qualification form for FasTrac Hardship Loan Modification.
Rating
starstarstarstarstar 		BS Loan Modification Help From My Lensder
by: Anonymous

Loan modifications are designed mainly for people who have a small change in their income not a big change. When I could make my regular payments, my bank said to call back when I'm one month away from not making it. So I did. I did not qualify for a home modification because my new income wasn't enough. So, now where does a person go? Huh, after 3 months of trial payments. BAM! I have to scramble....rent it out, is there time to sell it.....wait a minute , the bank trashed my credit score, now I can't rent anywhere!

My comment is "Don't Trust The Banks, they are getting money for every try/trial modification they attempt to make OR they are so large they have to and in the end, very few loans go forward to help people. I think this "Help" is a very deceitful indirect way of helping the Banks.
Rating
starstarstarstarstar 		I Liked The Article
by: Anonymous

This really got my attention and I like the tip on how to handle the credit hit issue.

Click here to add your own comments

Join in and write your own page! It's easy to do. How?
Simply click here to return to Ask Loan Modification Questions


footer for loan modification page