Is Chase Just Wasting My Time?
Or Can I Modify My Loan?
by Steven
(Clovis, CA, USA)
I originally sent all requested information to Chase in October 2009. After 5 months of resending paycheck stubs, bank information and re-signing the request for tax information (4 times), my loan modifiction request was finally assigned to a specific Loss Mititation Officer in February 2010.
Less than 30 days after I sent the last paycheck stubs and newly re-signed request for tax information, I received another letter from Chase requesting I update the information AGAIN!
My original loan was 100% financing and purchased the home with no money down. The mortgage is not upside down and is a 40 year mortgage at 7.125%.
I am the only person on the loan and I have not lost income, but my wife lost her job. This is all included and explained in my request to Chase for a loan modification.
What can I do to have Chase reduce my principle and reduce my interest rate? Is it unreasonable to ask for them to reduce the principle and interest (to closer to 2%)?
Thank you in advance,
Steven
Mortgage Loan Modification Answer:
by Loan Modification Expert - Dan North
This is a stall tactic by Chase and is not uncommon at other lenders as well. Under the current guidelines Chase is required to respond to your original loan modification request within 10 days. Chase could have started your trial modification immediately over the phone, even with out your paperwork being turned in back in Octover 2009.
Once Chase receives all documents and signed forms they have 30 days to either modify your loan or turn down your request. This is an attempt by Chase to claim your submission is incomplete by repeatedly requesting that you resend documents and information.
That covers what Chase is doing but to answer your questions on what modfication you can negotiate we first have to clear up if you are eligible for the HAMP Program.
Even though you are the only one on the mortgage the loss of a second income is grounds for a hardship.
To determine if you qualify for HAMP is your mortgage payment (including insurance and property tax) greater than 31% of your monthly gross income? If so HAMP will apply.
Here Is How You Fight Back To Force Chase To Play By The Rules
First since you did not state that you have an FHA or VA Loan I will assume that you do not. So the first thing you should do is find out if your mortgage is owned or guaranteed by Fannie Mae or Freddie Mac. If it is Chase does not have a choice in following the HAMP Guidelines.
Go to this link to see if your
Mortgage is owned or guaranteed by Freddie MacGo to this link to see if your Mortgage is owned or guaranteed by Fannie MaeThis will determine which report line you need to use to speed up the loan modification process.
