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My Chase Mortgage situation

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Rudy6897
Established Member

My Chase Mortgage situation

Hello,

            I have my home mortgage with Chase with a 30-year loan @ 7.875% that has an adjustment that may be coming time for the adjustment (I will call today to find out). I am 3 payments behind, so I'm getting the mailings & phone calls everyday. I spoke with a rep that's been assigned to my case last week about bringing everything current, and I told her I would get a payment to Chase to do that.  I still have that check in my wallet as I type this message. It's been running thru my mind, "do I really want to send them this check; do I really care about this house; maybe I'm ready for a Strategic Default"? I know my credit rating is already screwed; I get that.

 

Well, after talking to the rep assigned to my case today,,, she tells me that on the exact day we spoke last week about bringing my loan current, the papers were filed to formally place my loan in the foreclosure process. She states I have two options: 1.) I can contact the law firm that appearantly has the foreclosure, or 2.) she can review my financials (income & expenses) to come up with a repayment plan, which would mean adjusting my monthly payment up over the next 12 months to get the loan back on track.   This isn't the kind of "loan modification" I was looking for. 

 

From what I've read, I probably don't want to persue the Government loan assistance program; I probably wouldn't qualify anyway.

Can anyone help advise me on how to talk & negotiate with the Chase people?  Should I request to speak to a different agent even though this woman has been assigned to my case?     If my mortgage is due to adjust anyday soon, can Chase refuse to adjust it because my loan is in the foreclosure process? 

                               

                                                                                                  Thanks for any advise you can provide!

                              As you might be able to tell, it's the middle of the night and I woke up with all this running thru my mind, so it's hard to sleep right now!

                                                                                                                                      Thanks again!

 

Message 1 of 6
5 REPLIES 5
Anonymous
Not applicable

Re: My Chase Mortgage situation

we would need to know some details about income/assets/debts, and the reasons for the default situation to have any real advice for you.

 

As far as the foreclosure steps, that is standard procedure once it hits 90 days late.  Once it hits 120 days late, it will forever be looked at as a foreclosure to any bank out there for future use.

 

As far as strategic default, it depends on alot of factors as to if that is a good idea.  You need to look at what has happened to get you into this situation, the chance of it reoccurring, what the bank is willing to do to help, and just personal thoughts to see what you should do.  The bank may be willing to do a loan modification but that is totally different than them making a repayment offer or forebearance to help catch up.  You have to request a loan modification specifically and then go through a bunch of hoops and hope for an approval.

Message 2 of 6
ShanetheMortgageMan
Super Contributor

Re: My Chase Mortgage situation

Loan modifications can only be done by state approved individuals & attorneys in my state, so I don't really get into much of the modification aspect of mortgages anymore.  However I do know that if your rate is to adjust, it wouldn't be affected by a foreclosure starting.  A friend of mine was in foreclosure for over a year and was also in an adjustable mortgage, their rate fluctuated 2 times (once every 6 months) in that timespan.  If you are in the trial loan modification, that would probably affect the rate adjusting based on it's initial loan terms.

 

It sounds like the modification they are offering is a catch-up plan which at some point would revert back to the original loan terms, not the type of modification where it changes the terms of your mortgage on a permanent basis.  You can call back and see if you get someone else that has different advice/options for you, but if someone has been assigned they may always refer you to her.  The thing is not everyone works 7 days a week so there will be a day you call in and your assigned rep won't be available, and then others will be more inclined to answer your questions.

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Message 3 of 6
Homebuyer24
Valued Member

Re: My Chase Mortgage situation

Had a family member go through this w/ Chase and ended up in foreclosure.  First, her home dropped in over 50% value.  They also knew she had money in the bank.  She went to a non-profit for help to lower her interest and do a loan mod (she wanted principal reduction but they were refusing) and the non profit sent Chase 2 offers but both were rejected even though as I said it, Chase/investor would still make a profit, she would pay interest, just a lower interest rate--and she had not requested principal reduction w/ the nonprofit.  Even before that she had gone directly to Chase for assistance--up until the first request with the non-profit got denied, she had been current and never late.  The nonprofit told her to stop paying for 3 months or she would get no help.  She stopped paying, and was still denied help.  In the end, she found a new place and did a strategic default.  

 

If you can afford your mortgage or have money in the bank, the chances of getting a permanent loan mod are slim in my opinion.  Can you do a refi for a lower interest rate?With the lates that may not be possible but it doesn't hurt to ask.  How underwater are you? 

 

There are pros and cons to strategic default.  She had 1 loan and the type of loan where in CA they could not go after her in the courts.  If you have  HELOC or a second loan or refi and/or in a state where they can go after you, and you have money in the bank, they may go after you.  Do you have the money to get another place or would you just rent?  If you rent, do you have to have your credit checked (not always necessary depending on rental situation).  And if you are not sure, what would put you over to walk or not walk in either way?

 

I can say for her a strategic default wasn't just about the money.  There is anger at Chase and that leads to anger towards one's home.  In her case, she knew two neighbors had gotten permanent loan mods and their payment would be 1/2 of hers even though they had larger loan amounts on their home than hers.  She was happy for her neighbors, but to know you're paying more than double than people on either side of you in what was a new development, is a really bitter pill to swallow.  Neither neighbor had Chase btw. 

 

I think some people think it's easy to do a strategic default, but it's not an easy decision.  She lost hundreds of thousands after taking into account the down payment, and payments made over a few years and that is still a bitter pill--but she would've lost more if she'd kept in her eyes.  Is it easy to keep a home?  No, it isn't always easy either.  It is a very difficult decision.  

Message 4 of 6
Rudy6897
Established Member

Re: My Chase Mortgage situation

Well, after talking to an actual helpful rep @ Chase, we crunched some numbers and put together a repayment plan that would require me to pay an initial $5,000 and basically nearly double my mortgage payment from $1,800 to $3,600 for three months. She stated this would take the loan out of Foreclosure proceedings and bring me current with my loan. Remember, I'm now 4 months behind in payments.

What seems strange & suspicious is that she said she was unable to mail me any of the number crunching we did. She said I should see some paperwork to sign in the next 20 days.

Message 5 of 6
Rudy6897
Established Member

Re: My Chase Mortgage situation

One thing I've thought about over the past week is that I CAN NOT let this mortgage situation affect my retail business I own, an S-Corporation.

I figure, and correct me if I'm wrong, I may have better bargaining power to negotiate a better modification if my loan is current. I found out the 5-year ARM adjusts in 6/12. Could I still see a 2% drop in interest rate at that time? Maybe/maybe not.

And you better believe I went online looking at what I could rent if I were to do a walkaway. I could rent a georgeous 3-year old condo for $500 less than my mortgage payment. There's lots of rental out there.

Do I want to stay in this house for a long time? No.
But, I think I can ride it out until the market improves enough to sell.

Message 6 of 6
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