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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.

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.

Repair Your Credit After Modification, Foreclosure or Bankruptcy

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

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Rating
starstarstarstarstar 		Strung along NEW
by: Anonymous

My home went into foreclosure without any court summons etc. I just recived papers saying my home is now in foreclosre back in late 2009. Chase has been stringing me along with modificaions processes which would take 6 to 8 months each try. They would eventually deny me then would pre-approve me for another program then eventually deny me again. This kept going until my home was finally sold. When I received paper saying my home was going to be sold, I called my modification representative and they told me that was not true and that any foreclosure I had was no longer valid. That in order for my home to be sold, the foreclosure process would have to start all over again. I believe them and continued with qualifing for the current modification I was pre-approved for. I believe I was scammed into my home being sold. How do i fight this and get my home back.
Rating
starstarstarstarstar 		What to do next?
by: Anonymous

Same story.

I have been trying to get a modification with Chase for over two years. Just keep resubmitting.

Was denied last time two weeks ago for not enough income. My salary is lower with the economy. But I'm renting out 4 rooms in my house. Total income (and proved on my bank statements) is $4600. Chase only gave me credit for $3900? Mortgage is $3400 which I have been paying. But in doing so, have fallen behind on vital taxes incl property taxes.

I would be out of my house, but have put so much into it financially and emotionally.

I am three months behind for the year 2009, which I cannot afford to pay back. Chase is making it snowball and has raised my house payment to $3800. which I cannot pay. Chase has me owing $14,000 past due because of their late fees. I can only get together $3400. which is the orig scheduled payment.

I have filed a complaint with OCC, but I don't know what else to do, except to continue to resubmit application for loan modification until they foreclose.

Any comments are welcome.

Chase Mortgage Loan Modification Answer:

by Chase Mortgage Loan Modification Expert - Dan North


Run your own NPV Test using the values used by Chase, enter them into the Making Home Affordable (MHA) on-line NPV Evaluation Form and check the results. Also download the NPV Test from the FDIC website (With this download you can change around more of the values to see what changes need to happen to get a pass)

Verify the results yourself, challenge the values used that you can validly dispute. Go ahead and challenge the income figures used if you can document it.

One point you need to know on collecting rent as income, Chase will probably only count a percentage of the rent collected as valid income as there are maintenance and replacement costs that are factored in a head of time.

If you have equity in your home and it is a Fannie Mae owned or guaranteed mortgage then Fannie Mae HAMP Guidelines state that you will automatically fail the NPV Test. You would have to make special arrangements to get a modification.
Rating
starstarstarstarstar 		Chase Loan Modification
by: Anonymous

We just went thru the modification process. We are supposedly in a trial process, but it raised our payments and our interest rate. It is also on our credit as 120 days past due.

We were told, this would not go on our credit, that everything would come off and it hasn't.

Why were we told that our payments would go down, when they went up?

Can we call and tell them we do not want to do the modification anymore?

When we got our modifications back, we only had 2 days to sign and send back or we were back in foreclosure.

We were only 2 months behind, and I sent in that second month payment and they sent it back to me. They would not work with us, and we were on the phone weekly with them.

Chase doesn't know anything. They send us a check for $242 saying we over paid in late charges last year, then we get a check for $2100 saying we over paid our taxes. Are they all just idiots that work there?

Chase Mortgage Loan Modification Answer:

by Chase Mortgage Loan Modification Expert - Dan North


While Chase may seem ignorant, uncaring and out right idiotic at times, you are the one who has to convince them to modify your loan.

This sounds like a repayment plan on an adjustable mortgage that may have adjusted upward.

Payments can increase when you modify an interest only loan to a fixed interest fully amortizing mortgage. Usually the interest rate and payment will go down if it is a HAMP modification.

Since you are in a trial period you can still propose a modified payment that is lower (like 31% of your gross monthly income). When the permanent modification is offered by Chase you can still counter offer with lower interest rate and lower payment, you do not have to take their offer.

If the modification is still in the trial period you can refuse to continue with the modification and your mortgage payments will revert to the original payment but you will have to work out a repayment plan for the missed payments.

As far as the credit reports go you can challenge the negative dings on your credit to have them removed or corrected.
Rating
starstarstarstarstar 		Chase Refused My Cash Payment Today, Why?
by: CL

I'm currently in a home loan modification program (my second program because i didn't qualify for the first one with Chase and I am required to pay in cash to the bank on or before the first.

My three trial payments were up on March 1, 2011, but I have continued to pay the amount that they set for the trial payments on time every month.

While at the bank the teller took my money to process the payment and then pulled it out of the drawer and gave it back to me with the deposit slip and said the paid wasn't accepted and I needed to call customer service.

They just refused my payment at the bank. Why would they do this? What should I do?

Chase Loan Modification Answer:

By Chase Loan Modification Expert - Dan North


You need to contact the person at Chase you were working with on your loan modification and ask what happened. If your modification was turned down you should have received notice before you had a payment due.

There may just be an error and the payment should have been accepted. You need to find out.

If your modification request was turned down you need to find out why the request was denied. Chase is required to tell you and once you have that information you can take action to correct that or have it reviewed.
Rating
starstarstarstarstar 		Man taking pictures of home...said he's NOT from Chase Bank??
by: Anonymous

My mother is in a Loan Modification with Chase. She called me today and told me that when she was gone, a man came and took pictures of her home. Her neighbor went out and questioned him. He stated he was NOT from Chase Bank, that her home was in foreclosure and a couple was going to purchase it?

My mom never received anything from Chase in regards to her home being foreclosed.

If this man was NOT from Chase, then where did he come from?? Shortly after a woman came taking pictures on her cell phone and claimed to be a Realtor? Neither person showed identification. Please help!!

Chase Mortgage Loan Modification Answer:

by Chase Loan Modification Expert - Dan North

The first thing to do is verify with Chase if your mother's home is in fact in foreclosure. You should also check with the County Recorder to see if Chase has made any filings on your property.

Real estate investors or Realtors could be checking out the home as a pre-foreclosure because papers were filed with the County Recorder by Chase. Get the facts, there may not be a situation.

If she is three months behind in payments Chase has likely started the foreclosure process. If she is in a trial modification with Chase and only making partial payments, Chase could possibly have started the foreclosure process but would have to send notifications to your mother. She would receive notice of intent to start the foreclosure process and a notice of default before they could file with the county.

If the trial payments are being made the foreclosure process could continue but would have to stop before filing a foreclosure sale date. The filing of a foreclosure sale date would have to be done after Chase denied the loan modification.

If Chase violated the above they would be acting in bad faith. See these two articles for examples of bad faith acts by Chase on loan modifications:

  • The Home Loan Modification MessOften, loan servicers have little incentive to help homeowners avoid foreclosure. With reform stalled in the Senate, the best hope for fixing the broken mortgage modification system may lie with the 50 state attorneys general.


  • Lawsuits Accuse Lenders of Sabotaging Mortgage Modifications More borrowers are taking banks and loan servicers to court, alleging they were misled when they tried to renegotiate the terms of their loans.
Rating
starstarstarstarstar 		denied after 14 months trial payment
by: Brooke

My modification for my 1st loan was denied by EMC after I have successfully completed 14 months of trial payments.Before this, they sold my 2nd loan to another servicer who in turn modified the loan. The reason for my denial they said is insufficient income. I could not explain how I felt after learning of the denial. My heart was pounding and I felt sick. It gave me sleepless nights. I know of homeowners who have not applied for modification but whose loan was modified. As a matter of fact it was the bank who called them and asked if they want their loan modified. This was done to clients who can very well afford their mortgages. The bank lowers the APR but instead of lowering their monthly payments, the bank will shorten the term of the loan by 5 years, or for others, lower the monthly mortgage for 5 years. I know they are handpicked, people who were not asking for help but were offered help. Me? I surrender. I have better things to do than forever deal with the banks. I can make a "home" without owning a house. Good luck to you all.
Rating
starstarstarstarstar 		Real Plan
by: Jules

The banks only should get paid after they successfully FINALIZE each modification. This way they'll be motivated to help homeowners - not BS them for months and years and then forclose at the end. How did not anyone think of this before?
Rating
starstarstarstarstar 		chase will not modify
by: chivis

I applied for a mod with chase since Oct. 09..I have/heard it all. when I was phone interviewed I was told I qualify for a mod..I purchased my home in 05 and purchased @ 325 I still owe 310 and the value is 140. I was current when I first applied I was told that I would be given an answer within 60/ days but to call once a week to get updates. it was always the same story every time.Under review or update info. four months down the road I started to fall behind and I began to get desperate. continue calling but every rep tells u their own story. they actually told me they where wrapping up my file and I was gonna receive a fed ex package within that week. I called the following day to verify info and no one had idea what I was talking about. I have realized its all bs...they say what ever to kill time and they just tell you this stories to keep your hopes up. They pretend to help. I contacted congress and got an investigation opened and was told my congress that currency dept had opened invest with back and will take an average of 60 days...I. got attention from chase :headquarters and was assigned an analyst...he actually called me and asked me to send another package...he would actually speak to me and send me letters with requested information...everything was in right track until my analyst was changed...it took them another month before I received another letter telling me my file was still under review and gave me a new contact person...but this analyst I was given was the same as loss mitigation I would email and my calls transfer to to get nothing but a message stating that voicemail was full...when I finally spoke to analyst she said she had been buried under her desk...she asked me for another most recent utility bill that showed my property address and mailing to same address ...to me it was odd I had recently changed all my bills to a po box and said underwriter had a problem...I told her to look @ my utility bill from 8 months ago same everything but mailing address. She said she will use what she had cuss she had not realized...so the next day I get a fed ex letter giving me a deadline...I. waited for this lady to contact me for 3 weeks and now she is gonna be shady...they don't care how long you have been waiting for an answer cus they will turn around and. Tell you that its actually not bad..I was also told that if I have fallen behind intentionally so they can modify me faster it wasn't going to work...haha..I have no problem doing this but the dead line is the problem when my reading dated is 4 days before deadline...I. don't think my new bill will make it...bottom line I'm 2 months behind on my first and 4 on my second...if for any reason I don't make it by my dead line I'm so sure they will foreclose...I will not negotiate a short sale and I will stay as long
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.

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