In 2014 I inherited a small home from my father. The home had 8 years left on a 10 year mortgage @4% with escrows from Chase. I paid the mortgage for 3 years and Chase would hold the payment in an "unapplied" reserve until the legal (estate) department would process it so my payment history looked TERRIBLE. During this time I completed all the requirements to add my name to the account and remove my father's name from the account but it was never successfully completed so in January 2017 I started trying to get a mortgage to payoff my father's mortgage. My credit was low 600's and I have a BK7 Discharge from 7/2013. in February the first lender denied my FHA loan due to appraisal issues (exterior repairs required in Michigan...too cold). In April the second lender denied my loan due to DTI issues caused by my student loan payments which were IBR reporting but the full payment being way too high and title issues (my father was still showing on the title). At this point Chase had finally starting working on the modification/assumption... very slowly. Frustrated I decided to chill and let Chase figure it out. The Modification Rep advised me that my loan being "late" would actually support the payment modification and encourage the UW to reduce the 1220.00 payment to a more manageable payment amoritized over 30 years. After what seemed like forever I decided to give it one more shot with another online lender LoanDepot. I applied on 6/28 and received an immediate call from the loan officer. The loan officer ran my information and my credit report reflected the my BK date as 4/2013 and he came back with a CONVENTIONAL approve/eligible. When the loan officer realized my discharge was 7/2013 he advised me to either go FHA (impossible with my student loans) or wait a few days. On 7/7 I reapplied and was approved for a conventional cash out refinance. I was able to pay off my car, some credit cards and get cash out for renovations. Best yet, the findings waived my appraisal!!! I closed in less than 30 days and on August 2nd my loan funded at 4.25% with a payment less than 1/3 of the existing payment and escrows were waived.
For me the challenge of trying to assume the mortgage on the home I inherited was so tough because there is very little information about it online, I was able to maintain the loan but it was at times a struggle. My new mortgage completes the process of closing this chapter...
@StartingOver10 wrote:
@wit2bees wrote:@Anonymous 2014 I inherited a small home from my father. The home had 8 years left on a 10 year mortgage @4% with escrows from Chase. I paid the mortgage for 3 years and Chase would hold the payment in an "unapplied" reserve until the legal (estate) department would process it so my payment history looked TERRIBLE. During this time I completed all the requirements to add my name to the account and remove my father's name from the account but it was never successfully completed so in January 2017 I started trying to get a mortgage to payoff my father's mortgage. My credit was low 600's and I have a BK7 Discharge from 7/2013. in February the first lender denied my FHA loan due to appraisal issues (exterior repairs required in Michigan...too cold). In April the second lender denied my loan due to DTI issues caused by my student loan payments which were IBR reporting but the full payment being way too high and title issues (my father was still showing on the title). At this point Chase had finally starting working on the modification/assumption... very slowly. Frustrated I decided to chill and let Chase figure it out. The Modification Rep advised me that my loan being "late" would actually support the payment modification and encourage the UW to reduce the 1220.00 payment to a more manageable payment amoritized over 30 years. After what seemed like forever I decided to give it one more shot with another online lender LoanDepot. I applied on 6/28 and received an immediate call from the loan officer. The loan officer ran my information and my credit report reflected the my BK date as 4/2013 and he came back with a CONVENTIONAL approve/eligible. When the loan officer realized my discharge was 7/2013 he advised me to either go FHA (impossible with my student loans) or wait a few days. On 7/7 I reapplied and was approved for a conventional cash out refinance. I was able to pay off my car, some credit cards and get cash out for renovations. Best yet, the findings waived my appraisal!!! I closed in less than 30 days and on August 2nd my loan funded at 4.25% with a payment less than 1/3 of the existing payment and escrows were waived.
For me the challenge of trying to assume the mortgage on the home I inherited was so tough because there is very little information about it online, I was able to maintain the loan but it was at times a struggle. My new mortgage completes the process of closing this chapter...
^^^Congrats on your refinance. Be very careful. It sounds like you have a lower payment because you are not paying into an escrow account for your property taxes and building insurance. Will you have the funds to make these payments when due?
BTW, it is common for banks to give the run around for an assumption. Especially since you had a Bk on record Chase was most likely avoiding your file and making it so you applied somewhere else because they were "slow processing" your file. It is a way to say no without actually denying your application. I have seen it time and time again. It is very frustrating. All they have to do at the initial application is say they don't want to provide an assumption because of X or Y or Z. But they won't do it.
Thanks, Yes I will absolutely have the money for taxes and insurance. I have plenty of reserves. I've been a homeowner since I was 17 and always paid my taxes and insurance separately. Chase actually called during the recission approving the modification, the LTV is very low on the loan, the concern was my mortgage on my previous home which I still have (but it's not reporting because it preceeded the BK) and rather I would really live in this home as a primary (which I have since 2013 while caring for my father). The payment is significantly lower because the term changed. Yes this was very frustrating to say the least but Chase has been sued over their failure to process the assumptions fairly.