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

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

Chase offered a Trial Modification Plan near the end of Nov 2010, after my husband had been out of work for nearly two months.

At the end of Dec 2010, we had a family emergency and had to come up with $7,000.00 in legal fees which had to be paid no later than the end of February 2010.

My husband went to his previous employer of 11 1/2 years and basically begged for his job back. He was given temporary employment to aid in paying the legal fees.(We had to borrow from family members as well).

We have not reported this income to Chase because he was not going to be kept on permanently, just until the end of March.

Recently, due to business slightly picking up and a co-worker being injured, my husband's employer informed him he was willing to take him back permanently.

We are so relieved, however, will Chase now rescind the loan modification offer or make an alternate modification? If so what will our options be?

Chase Mortgage Loan Modification Answer:

by Chase Mortgage Loan Modification Expert - Dan North

This depends on a couple factors. Was the income information that you sent to Chase factual at that time or was your husband receiving income from the temporary employment that was not included in the documents you sent Chase?

If at the time you made the request for loan modification and sent in the documentation you reported everything completely and factually there is no fraud and would not be in violation of any of the Government Regulations. This means that your modification under the HAMP Guidelines is still valid even though your husband was re-hired.

Per the Making Home Affordable Guidelines if all information supplied and documented at the time of the submission is true and accurate you are eligible for that loan modification even if your circumstances change during the trial period and before Chase makes the trial loan modification permanent.

Going forward if Chase requests additional information or documents about your husbands current income you would be required to report his change in employment and increased income. This would change the loan modification you are eligible for since the monthly modified mortgage payment is based on 31% of gross income.

If your monthly mortgage payment (including property tax and home owner's insurance) is less than 31% of the monthly gross income you would not qualify for a permanent loan modification under HAMP.

You would still qualify for a Temporary Forbearance due to unemployment under the Making Home Affordable Program. This would include reduced monthly payments or even skipping payments for a period of time. The details would have to be worked out with Chase but Temporary Forbearance could involve increased payments (repayment plan) to again bring your mortgage current after the Temporary Forbearance Period ends.

Further information on Making Home Affordable Temporary Assistance for Unemployed Homeowners