Posted by MSFlorida on 3/25/10 9:50am
Msg #328905

O/T LO opinion needed please

Ok this maybe telling more about myself then I want known but Maybe one of the LO on this board can help. A few months ago I replied to a thread on here about my experience trying to get a Loan Modification with Chase. I started the process in April of 09 was denied for the modification in Feb. of this year. Instead of the Mod they sent me a letter stating my options was to Short Sale or Turn over my Deed to them. So I Inquired as to why I was turned down and they stated something to the affect they did the #'s and my loan was only 17% of my income however if I called their refinance dept. they maybe able to help refinance my loan if I had a Freddie or Fannie loan. So I verified that indeed I did have a Freddie Fannie loan by going on to their website immediately. I was put through to a Counselor he ran #'s and couldn't figure out why Chase turned me down for the MOD but he stated that I should definitely qualify for the Refinance and that he was sending letter to Chase and me to start the ball rolling and for me to contact Chase. Ok I thought I may get somewhere with this so I contacted Chase and of course they sent me to Loss Mitigation Dept not because I was not making my payments but because they had my paper work and they could forward me to one of their reps. Well got hold of the Loss Dept and they proceeded to put me through to Quicken Loans stating they were overwhelmed and that they partnered with Quicken to speed up things. This is where things get weird ok so they directly put me through with Quicken spoke to he said Executive for Quicken he ran the Credit and stated great credit should have no problem came back with suitable interest rate and payment but then stated that they had to do a Appraisal ok well the reason why I was doing this whole thing is because my home is underwater if you do the appraisal I will not be able to do a conventional loan that is the whole purpose of this. Oh he stated ok I will have to run your #'s and verify no appraisal will be needed and get back to you in about an hour ok so we hang up. Not even 5 minutes after hanging up Chase calls oh we can qualify you with the Hamp program #'s been ran credit has been pulled and then they quoted me with a higher interest rate and payment then what I have now no documentation needed but appraisal required. So now I am confused I asked why they sent me to Quicken instead of stating this when I called the LO couldn't answer I told her what quicken quoted me. LO stated they can't qualify you for the Hamp loan because they are not your lender only your lender can qualify you???? I told the LO at Chase sorry but quicken will be calling me back and I would have to get back to them. Well Quicken calls back an hour later as promised and proceeded to tell me Mrs. Schwartz I tried to waive the Appraisal but not able to but if you wait a month the Government will passing another bill or program that would allow us to skip appraisal and don't worry your adjustable doesn't take place until Aug. 2010 and because it was tied to the Libor your interest it would stay the same or may even go down give me a call next month and we will get started. So this is where I am at. My question is there another program coming out next month or have I been duped by both Chase and Quicken? My take is they talked together prior to quicken calling me back and Chase told Quicken to tell me this so they may keep the loan and sock me with a Higher Interest rate?

Reply by Shoshana/AZ on 3/25/10 10:21am
Msg #328909

There are new programs coming out all the time.

B of A is being forced to cut principal balances for delinquent borrowers according to a law suit settlement that was announced yesterday. Unfortunately, most loan mod programs are for delinquent borrowers. It shouldn't be too long before other lenders offer these programs.
Please note that I am not advocating that you become delinquent. Whatever you do is up to you.
One thing that helped a friend of mine was to tweet about her loan mod issues with Aurora. I tried it myself. Lo and behold the next morning all of a sudden Wachovia/Wells Fargo signed up to be my friend on Twitter. If this doesn't work my next step is to go to the media. This process is very frustrating because there are two banks involved and the right hand doesn't know what the left hand is doing. Most every major market has a tv station that has consumer help available. Also, there is an organization that may help. Go to www.naca.com .

Reply by MW/VA on 3/25/10 10:27am
Msg #328912

I'm not a LO or miracle worker. Have you tried the "Making Homes Affordable" website?

Reply by MSFlorida on 3/25/10 11:26am
Msg #328924

I have tried everything but the media, why because I think I am embarrassed to have everyone know my business believe me I contemplated on putting this here. When I took this loan in 2005 I had just started this business and afraid I wasn't going to be able to pay my mortgage until I knew how things were going to go. I refinanced to the adjustable I/O to get a lower monthly payment until I was able to determine if this business was going to pay off. My son had just started High School so I figured well go with the 5/10 arm and when he finished High school I would sell and move somewhere else prior to the 5 years. My home appraised for 270,000 and the loan I took out was 130,000 thought I was being responsible not using all my equity well then of course Roof needed repair a/c needed repair so I took out a equity line for the repairs. Now I have two loans but still no where near using up all the equity. After a year and half Business was good making enough money to pay both loans and even making additional payments toward the principal even though it was a I/o loan I actually paid 9000.00 towards the principal in 3 years(maybe that was a stupid thing) but then the property's started going downhill and my home is now only worth 100,000 and still falling due to all the foreclosures. Now not able to sell is why I am worried that the interest will start going up when adjustment takes place and the home that i have lived in since 1998 and sunk alot of money into will all be lost . What I don't understand is if they are going to help people that are underwater in their mortgage why in the world would they do appraisal they already know that my house is underwater my equity lender seized the loan long ago quoteing this. Well now you know my whole story. I will continue to find a way to figure this out. I am thinking maybe renting out my home to cover the mortgage and finding a smaller home for rent for myself someone in my family even suggested I rent out my home and buy a better home but don't know if I would qualify for a new loan on another home. Not looking for a bailout just want to fix my rate at what it is now and let me continue to be responsible. Thank You for listening.

Reply by Lee/AR on 3/25/10 10:34am
Msg #328913

What jumped out is this statement: my loan was only 17% of my income
That's an extremely low payment to income ratio.

Reply by Linda_H/FL on 3/25/10 10:37am
Msg #328914

Leading to the belief there are other factors coming into

play that are not included in the original post....

http://portal.hud.gov/portal/page/portal/HUD/program_offices/housing

Reply by ReneeK_MI on 3/25/10 11:09am
Msg #328918

Same thoughts as Lee ...

The mods, to my understanding, are designed to assist those who are or will be unable to afford (i.e. via qualification ratio's) their payments due to financial changes (loss of household income, pay-cuts, etc) BUT CAN qualify for modified terms.

The story on the street SEEMS to be that lenders want mod-applicants to BE 3 months behind before they'll approve the changes. Boy ...not a game I'd want to play. I do personally know someone whose lender directed them to "make the next 3 payments to your own savings account, and then we'll approve it." They did, and ...mod approved. But Holy Whew!

All this *stuff* that is unofficial and behind the curtain is very scary.

Reply by Larry/IL on 3/25/10 11:37am
Msg #328929

Not sure this helps, I have been closing about 5-10 chase loans a week and many are closing on underwater properties, one of the Govnt plans Chase was using, allow REFIs up to 125% of value, most I have seen so far was a 115% over value.

Reply by Charles_Ca on 3/25/10 12:42pm
Msg #328939

I used to do a lot of Washington Mutual Loans, hate Chase

I have not found Chase to be reasonable to work with at all. I used to like Washington Mutual and had a great relationship with them as a Loan Broker and as a customer. I have had to deal with Chase as both now that Washing Mutual is gone and Chase is virtually impossible to deal with. It's like there is absolutely no communication internally and what makes sense at other institutions is not employed at Chase. You have my sympathies, the best suggestion I can make is that you keep trying to deal with different people, eventually you will find someone who will actually do something for you that makes sense.

Reply by Sylvia_FL on 3/25/10 2:21pm
Msg #328963

I am sorry. I tried to read your post, but with no paragraph breaks it was so hard to digest.
I gather it is something to do with a loan mod. Are you trying to get it through the bank that already holds your mortgage???

Reply by LKT/CA on 3/25/10 9:31pm
Msg #329038

<<<I am sorry. I tried to read your post, but with no paragraph breaks it was so hard to digest.>>>

Sylvia, I so agree with you and glad you brought this to light. To answer the OP, I don't believe loan mods are just because a home is worth less than owed, particularly since the DTI (debt to income ratio) on the front end is only 17%.

Reply by Sylvia_FL on 3/25/10 9:42pm
Msg #329041

Lisa
I just have to sort of ignore long posts that are all run together (no paragraphs), and posts that are all in caps. It's a shame because I am sure the OP had a valid question in there somewhere.

My teacher would have had a hissy fit if I had wrote that way in school.

Reply by Claudine Osborne on 3/25/10 10:02pm
Msg #329043

www.naca.com..My friend had difficulty with her lender for a year. This is where she received the much needed help. She was underwater..thanks to NACA she received her loan mod and life is easier and they can finally catch up!