Trial Loan Modification For 11 Months And Repayment Plan




We have been in a trial modification for over than 9 months. Yesterday I received a letter from Chase with a repayment plan which 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 threatened 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?

Chase Mortgage Loan Modification Answer:

by Chase Mortgage Loan Modification Expert - Dan North

The first question to ask yourself is "Can you afford the modified payment Chase is offering you now?"

If your mortgage interest rate currently is more than 5.250% this is a loan modification that sounds good. The bottom line is can you afford to make the payments for the next year?

If you know that your income will be reduced and know how much it will be reduced you can counter offer with the what your future gross income will be and ask that Chase make the modification based on that. That would lower your payment and may also extend the length of your loan.

NOTE: There is the possibility that with another reduction in income Chase may no longer approve a modification. With that in mind you have to decided if what Chase is offering right now is affordable even with the threatened income reduction. If you can not afford that payment, with the next income reduction, then you have no choice and do need to make a counter offer to lower the mortgage payment to an affordable amount.

You have done pretty well on getting a modification on your own so far but if you want some help in hiring a professional negotiator to get the modification you really need then contact me. If you just want some more help so you can do it yourself get this Do It Yourself Loan modification Kit. This is a kit I highly recommend.

If you need something in between the two above options contact me and I can provide some other options.

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Comments for
Trial Loan Modification For 11 Months And Repayment Plan

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starstarstarstarstar 		Use some common sense! NEW
by: Anonymous

First and foremost, antime that a mortgage loan is taken out, the chances that there will be an income change during the term is about 75%, if not more, now whether the change is going to be for the good or for the bad is unknown at the time you are agreeing to the terms, correct? However, in the state of this economy it could be 50/50. If lenders used the same logic when originating your loan that you are using when you say employer potentially closing, therefore, I can't afford the payment in a year, then I wouldn't approve you for the loan. The fact is, lenders don't base decisions on future earnings that are "potential" or "likely", they base it on verifiable factors, therefore, what you have verified today that you earn makes these terms affordable "today". In any case, if you believe that your employment is in jeopardy, and you want to keep the home, you will need to get your butt of blogs and begin to find new employment. If you worry less about what you can't afford in the future and worry more about what you can do today to offset your future mortgage payment, your chances of success will improve greatly.
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starstarstarstar 		PNC Homeowners Assistance Modification Program - A Travesty
by: Anonymous

After 11 Months of making the "3 Month Trial Payments" on time, every month and after sending in ALL required documemtation over and over, and after substantiating that we meet the 31% ratio of income to monthly payment, we have now received 3 letters consecutively from 3 different departments which appear not to know what the other department is doing: Oct.7 a Denial Letter, October 11 a letter requesting more of the same documents that were repeatedly sent in the past few months, October 15 a demand letter requesting a bogus "late" payment of $21,000 due by Nov.1 or they would exercise the acceleration clause.

All of this on a loan that had never been late previous to applying for this "great" program, has never been late during this 11 month trial period, and is on a primary homestead.

The acceleration "Threat" letter received today references One (1) alleged missing payment for July 2010 for which I was able to immediately print written proof of the payment being transmitted to them on-line and on-time.

I have followed this case very carefully and I have alerted the Loss Mitigations department for PNC that I have every intention of filing a formal state compliance complaint against PNC both on-line and in the media this coming week unless I get a senior executive to return my call and explain exactly who has worked on my file, and who has been responsible for arbitrarily generating these unsubstantiated and blatantly inaccurate statements.

In the worst case scenario, they should only be allowed to demand repayment of any monthly savings that we might have realized since making the 1st of these 11 trial payments, which in our case, would be $750 X 11 or $8,250; how do they justify demanding $21,000 by November and how dare they attempt to intimidate consumers with a threat of immediate acceleration and foreclosure.

The delay and shortage in the monthly payments since Jan.1, 2010 have been at their request and their design. Prior to putting faith in their "HAMP" program administration, our home loan was in excellent credit standing.

PNC is proving to be a Poster Child and prime example of the tragedy that is our mortgage servicing industry. Innocent, responsible consumers are being victimized.

I intend to make them an example of their unethical, irresponsible and unfair business practices that are contributing greatly to the tragic and critical state of our housing market.

LH, Real Estate Broker and Homeowner.

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