Modification Secrets

To understand what is going on with loan modifications behind the scenes it’s important to know the players. You already know that the government regulates, and pumps money into the mortgage market. Government backed loans are backed and purchased through Government Sponsored Enterprises.

These Government Sponsored Enterprises (GSE’s) were created by The United States Congress. One purpose of the GSE’s is promoting equal housing opportunities. The most well known GSE’s that were formed for this purpose are Fannie Mae, Freddie Mac, and Ginnie Mae.

All activities performed by these entities are done with heavy guidance from the government. This type of loan may be fairly easy to get modified as they are currently under extreme pressure to shore up their loans.

Private mortgages do not have the same level of intensity applied by the government, although any industry that ignores pressure applied by the government is ill advised to do so.

Private mortgages which are kept by the initial lender are called portfolio loans. This means that the original did not sell off the loan. These lenders keep their loans in their asset portfolio as an investment.

Lenders who portfolio their loans have total discretion over how, when and why they would modify a loan. My experience is that these lenders have the ability to be the most creative and flexible when it comes to loan modification.

Many of the private mortgages made as sub-prime loans were securitized and sold in big bundles as mortgage backed securities. The payments on these mortgages are collected by a company called the Servicer. The conditions under which a servicer is allowed to modify a loan are covered in pooling and servicing agreements or servicing agreements. These agreements normally employ standards which are generally accepted practice. Some of the standard provisions require the loan servicer to follow accepted servicing practices and procedures as it would employ “in its good faith business judgment” and which are “normal and usual in its general mortgage servicing activities”.

Common practice guidance for mortgage loan servicers usually comes from the American Securitization Forum. The American Securitization Forum (ASF) acts as an independent organization that funds itself. The ASF operates as a forum of the Securities Industry and Financial Markets Association (SIFMA). The ASF membership is made up of issuers, rating agencies, financial intermediaries, guarantors, law firms, and accounting firms.

Recent conditions in the mortgage market have necessitated guidance for loan modifications from the ASF. The ASF has issued guidance that dictates a case by case evaluation of loan modifications. They divide borrowers interested in loan modification into 3 different segments.

SEGMENT 1

Borrowers who are deemed to be “eligible to refinance into other products,” are in Segment 1, unfortunately these borrowers are out of luck. If you have a FICO over 660, and/or owe less than 97 percent of the value of your home and your payments are current you are in this group

SEGMENT 2

These borrowers are on the “fast track”. If your FICO is less than 660, and/or your LTV is higher than 97 percent you are in this group.

Fast track means that the servicer may modify your loan with minimal qualification work based on the following:

The borrower is deemed to be able to pay under the loan modification based on his or her current payment history prior to the reset date.
The borrower has expressed a willingness to pay under the loan modification, as evidenced by a signed loan modification agreement.
The borrower will be able to pay under the original loan terms.
The loan modification must maximize the present value of asset recoveries to the securitization trust and is in the best interests of investors.
SEGMENT 3

This is the bottom tier, not eligible for fast track, but still able to get a conventional loan modification. This is by far the largest group of borrowers in need of a loan modification. If your FICO is less than 660, and/or your LTV is lower than 97 percent you are in this group.

· The borrower has a fixed rate loan but has had a hardship causing them to be unable to maintain current payments.
· The loan is a sub-prime loan with a high interest rate unsustainable for the loan term
· The loan modification must maximize the present value of asset recoveries to the securitization trust and is in the best interests of investors.

There you have it!

If you read the last line in segment 2 and 3 you get the “lenders point of view”. NEVER FORGET when you are negotiating with your lender, they are not out for your best interest; they are only interested in getting as much out of you as possible.

All lenders are working to maximize the return on their investment – your mortgage. If you understand that then you are ready to begin negotiation a loan modification on your own.

Why Do Lenders Prefer A Loan Modification Over A Foreclosure?
Lenders are known to be difficult when it comes to loan modifications. But did you know that they benefit at least as much from the process as you do? The main reason they balk at mortgage modification is that they have to train agents to handle them, and each case requires individual attention. But it also saves them a good deal of time compared to foreclosure, and may even have a few long-term benefits. Here are some good reasons why your lender might prefer a loan modification over a foreclosure.

It?s faster and cheaper. In a foreclosure, there are specific wait times that allow the borrower to get current with their mortgage. It?s not uncommon for the process to drag on for almost a year. These delays can cost your lender a good deal of money. A loan modification, on the other hand, takes an average of 30 to 60 days. All they have to do is go over your documents, talk to your loan modification attorney, and see if you qualify. The negotiations are the hardest part, but they don?t cost quite as much as foreclosure expensesIt?s less work. To start the foreclosure process, your lender will have to assess late charges, file a Notice of Default, pay heavy lawyer fees, and arrange an auction to sell your home. And if you manage to get back on track and stop foreclosure, all the work simply gets filed away. Loan modifications involve less work on their part. You and your loan modification attorney will do most of the work and provide most of the documentation. Often, all they have to do is assess your case and decide what kind of mortgage assistance you will need.

It helps keep investors. Foreclosures are as damaging to your lender as they are to you. It may benefit them for now, but with the recent housing bubble, it will eventually weigh them down. Investors don?t want to deal with banks that have too many foreclosures on record. If they grant you a loan modification instead, your payments will keep showing up on their records instead of being written as bad debt.

Of course, this doesn?t make it any easier to get what you want from your lender. After all, you?re still a liabilityand it?s important to prove that you can get back on your feet. To get the best loan modification deal, you need a good Loan Modification Lawyer who knows the what lenders need and can convince them that it?s the wiser choice to settle a loan modification.

Modifications are not overly difficult
The mortgage loan modification process is not a overly difficult one. The fact is lenders are very motivated to work with you. For lenders, a loan modification is the preferred solution to help troubled homeowners.

There are 6 key elements that the lender will look for when considering a Mortgage Loan Modification:

The factors they will look at are:

1. Hardship
2. Ability to pay
3. Amount Owed
4. Equity in the property
5. Future financial situation
6. Does it make more sense to have the borrower sell the home via a short sale.

A loan workout or loan modification generally occurs where the parties to a problem loan mutually agree to workout the problem by creating new and better loan terms. The hope is that the new loan will enable to the borrower to meet their obligations. Often times homeowners don?t want to or simply can?t do the loan modification themselves. They prefer to hire a professional to work with the lender to modify their loans for them. Increasingly, millions of borrowers are turning to ?Mortgage Loan Modification? specialists to provide this service for them. Learn how to become a mortgage loan modification specialist now.

154 thoughts on “Modification Secrets

  1. I have been in the Chase run a round for 20 months now. I am tired of the mess. My wife and I are both unemployed, only able to work part time here and there. We can struggle to make a modified payment, which has never been approved. Out of fear they will foreclose I plan to stop paying, save my money and prepare to move when they sell or take my house. OUT OF OPTIONS.

    • Larry that is exactly what I had to do… after trying to do a modification twice while I was still up to date and paying on time I gave up and stopped paying the mortgage… it seems as if Chase bank is just tricking people into going into default in order to supposedly do a modification but it’s all a waste of time… 2 years have now passed and I’m still living in the house, still trying to do modifications (denied about 5 times).
      These as****le bankers stealing everyone’s money should be forced to payoff quite a few mortgages and call it a day.
      This time around I’m getting a lawyer to try and do a modification again but if that doesn’t work I guess I’ll just have to wait for foreclosure…
      it just seems amazing to me that there are so many of us in the same boat and banks still get away with it…
      we should all be suing and getting our houses back.

    • WOW!!!!!!!!!!!!
      Here is my dilema and I would love to hear anybody’s comments regarding my situation…
      My house was apprased for $340,000 6 months ago. We paid $285,000 9 years ago. Over 9 year we re-financed twice and took $50k out each time, we used the money to re-model the house and to buy into a business. We tried to re-finance thru the Hamp program?? But did not qualify. Bummer! We have good steady income but the mortage is $2900 per month with taxes and that payment basically sucks us dry. We are house poor!!!
      So here we are totally frustrated. Here is our thoughts and plan.
      This house is not our dream house, we really don’t want to leave but I think we have decided to let it go. Our thoughts are that we are going to try and stick it back to Chase the way they have done to everybody else. Here is what we are thinking about doing…..
      1. Stop paying on the mortage.
      2. Start the modification process with Chase.. We give ourselves a 20% chance that a modification will happen.
      3. Mod wont happen, then we are going to try a short sell. I am going to do a “Sell By Owner”. We want to list the house for higher then we know it will sell for to buy us more time living in the house and saving money.
      4. Complete short sell and have a letter that Chase will sign letting us out of any differences there might be or any misc. fees that they could come after us in the future.
      5. Go rent a house for $1000 less per month….

      Our goal is to play Chase like they do to everybody else and live in our house as long as we can to save money. We don’t want to pay any, Pre-Modificaton payments or any type of payment at all. We want to STALL as long as we can!

      We know there is a really good chance we will loose the house! Our goal here is to play the stall tactic with Chase and live in our house as long as we can and not pay them! If anybody has any information that might help us with this manuver I would really appreciate it.

      • Loan mods are a scam, and you won’t get one through Chase. Here’s why: Chase shifted the risk for all the bad loans they wrote, and all those loans they absorbed from Wamu to wall street by bundling those into pools of Mortgage Backed Securities and selling them. Once your promissory Note is converted to a stock, the original note is destroyed. That ‘s why they can’t send you the name of the current noteholder–because thousands of investors may own a piece of your mortgage. It is Security Fraud for the note and the stock to exist at the same time, (think about that…if they did, the note could be sold over and over to the next sucker) so the original note is destroyed. Once that note is gone, it’s gone forever, and they can’t reconstitute it. They might send you a photocopy of the original note taken from the loan closing documents, but it does not reflect who the current holder in course is, because no one knows this information. When a promissory note is assigned (sold or transferred) the assignment is recorded on the back of the note, just like you’d endorse a check. If you look at the back of the note and there is no endorsement, it’s called a blank assignment, which courts have ruled isn’t acceptable to prove ownership. The remedy is easy if your loan is with Chase, because they sold 99% of their loans to Fannie Mae. You hire a lawyer, or sue them pro se for the house. Many people are winning against big bad Chase because they are committing fraud and extortion and they know it. They will do anything to get your house, including forge phony assignments and reverse engineering of chain of title. Arm yourself with knowlege and object to the introduction of their fraudulent docs in court. There are three ways: 1.File suit before they foreclose, or file and adversary motion against their motion for relief and file Chapter 13 if you are in a non-judicial state. 2. Wait for them to foreclose and then sue them for PUNITIVE damages, often three times the amount of the loan. 3. File a quiet title motion and try to get them to give you the deed in a settlement, because they know they can not legally foreclose on you, if they are not a PARTY with STANDING. Once your loan was securitized, they no longer OWN it. email me for more info, Mike. Take them to the cleaners, like they’ve done to the American homeowner.

    • My wife and i were in it for about the same amout of time. being told we were in underwriting over and over for months. being send letter saying we were in default even though we were in the loan modification plan. We gave up and stop paying finally. we declared a chapter 7 bankruptcy including the house in it. We were discharged and now are living in the house with no payments and trying to short sel it for Chase. Chase is a joke and i’m glad i have to more of a financial hold on me. WOrst bank that ever existed. i tell everyone i know that this bank is pure evil.!

  2. I have been going through the Chase run around for 12 months. My story is similar to the ones in this blog. I want in on a class action law suit. What theses lenders are doing is wrong. I was denied my first perm modification after successfuly completing the trial mod payments and providing all requested documents on time. Chase denied me saying they did not get the required documents. I was told to re apply, so I did. I am currently waiting for an answere from Chase, mean while they will not accept any payments from me unless I pay the loan current. they did not count the 7 months I paid the trial mod payments as making payments. I have been waiting for an answere since Sept 2011. I am now a total of 17 payments behind according to Chase. Something has to be done. They should not be able to get away with this.

    Frustrated

  3. My wife & I have been “jerked” around by Chase for weeks and weeks now, and today, (after 6 attempts to reach a “live human”), I finally spoke to yet another, hispanic or other south american, with the same result, could hardly understand her, went through the same song and dance as we have gone through on other occasions, only to be told that a “new modification package will be mailed to you”!! I’ve reached the point where I’m convinced this is all nothing but a bunch of BS!!! Frankly, we don’t know what the hell to do or where to go from here. Yesterday, some geek showed up at our door, (again for about the 4th time) and left a door hanger “please call, urgent” sign. What the hell??? How many times do they have to hear, “Hell yes, we want to stay in our house”??? Lost jobs like so many other Americans, yet can still make some sort of reduced mortage payment, if just give the opportunity, but we have lost confidence that this bunch has any interest in helping, at all! I’ve contacted both of our U.S. Senators for any assistance they might be able to offer, but you know how this goes..Hell, they are harder to reach than Chase! Friends, the American Dream ain’t alive and well, espcially if you have been unfortunate enough to have it mortaged by this outfit!!

    This Sux!!

  4. I cannot believe what I am reading here. This is EXACTLY what they did to us. We got 3 months behind, did a trial mod for a lower amount, which made us 4 months behind, I tried to pay my February payment plus enough to make an additional payment. I was 2 dollars short, no one knows where the 2600 dollars I sent in on Feb. 1st is, and they put is in foreclosure. I have been working with them since Aug. 2009. No 2 people at Chase know the same information….they tell me and my husband two different things. So I was 4 payments behind, tried to pay one extra so I was 3 and they put in foreclosure. THIS IS NOT RIGHT. Between me and my husband we work 5 jobs currently, have 3 kids, one with special needs. I want justice. Like I said from the first time i spoke with Chase, I WANT TO KEEP MY HOME AND AM WILLING TO WORK WITH YOU. In the past year , they have put me on 3 trial mods and 2 preliminary repayment plans….we never qualified for anything. And now Chase is telling me (even though I have a Western Union confirmation number that I never sent money for 2600 on February first. A class action is in order.

  5. I am on my third packet I also completed a trial of 6 months but keep paying lower amount not knowing what to do. Now after hundredes of faxes and calls I am right back where I stared but worse my credit is destroyed.

  6. I agree with everyone here. I missed one payment in over 20 years due to swine flu. They immediately offer this as an option and told me it would take 2-3 mos. We are almost 18mos into it. My credit is beyond destroyed. I think there needs to be a class action suite. Does anyone know of any going on on how to start one? I have a friend that the same thing happened to.

  7. I think every one is right. A class action against CHASE is the way to go. I tried to get my loan modified , What a huge joke that was. My payment started at 1232 and change. This included the tax’s and insurance. I applyed for the modification , Chase really tried to help me out. They lowered my payment to 1184.00. I was stunned, I could not belive the amount.( NO WHERE DID IT SAY TAX’S AND INSURANCE WERE INCLUDED), So I called them wanting to discuss this payment, and where who was going to pay the tax’s and insurance. After the *ss chewing I got from my relationship manger. I was told that this was my only offer, and not to worry about the tax’s and insurance. It’s included in the payment. So I asked, Can I have that in writing. CHASE SAID—-”NO—WE ARE GOING TO FORECLOSE ON YOUR HOUSE!” What the *ell are they doing? If there is a lawsuit to sue Chase Please Email me [email protected]. So I can join….Oh yea I forgot one other important detail. My mod. payments went from Dec.2010 to march.2011 . So before I even made my first payment . I got a letter from Chase ” Staring Feb.1 2011 your new payment is 1268………. WOW….. My payment raised to more than what I started with in the middle of my so called trail payments.

  8. I never made it to a temporary modification like ya’ll are mentioning. When I started the modification process back in August 2010 I was only two months behind. (That was only because Chase had up’ed my mortgage by over a $100 after doing an escrow analysis. They had not paid my insurance company so my insurance was cancelled. I called Chase to find out what was going on as I paid the insurance in escrow and my phone call alerted them to the fact that I had no insurance so they then “forced insurance” on me at an crazy amount for the months I had been without and then some so I had to get my insurance company involved and once it was all said and done there was about 4 months I was not covered that they charged for making my payment go up!!)
    So I was told, “do not worry with making your mortgage payments while in the modification process, if you make them it will look like you can afford them and your modification will be denied” they just now denied my modification the beginning of this month and they already have a foreclosure sale date!!! What the what!?!?!?
    I even have a letter from the that says ” we want to be sure that you are aware that as of the date of this letter your mortgage payments totaling $0.00 for 5 months plus late charges of $0.00 are past due”. When I got that I thought okay, well that must be true about not making the payments since they are saying I dont owe them anything.
    Don’t get me wrong I knew I would eventually have to pay that amount but they made it sound like a modification was all but guaranteed and that amount could just be rolled on to the back of the loan.
    My head is still spinning from all this! I am so shocked that a company would do this to people but even more shocked that they are not being held accountable!!!!!!

  9. my husband and I have the same story as everyone else and we also believe something should be done about chase and our credit is ruined too and the same run around as the rest of the comments i just read and we should have a class action suit

  10. I agree with everyone me and my wife are in the same boat we are fed up with all the bs we even hired modification specialist called the mac group and paid them $ 2500 dollars to work with chase and got nothing but a big bs runaround tried to get a refund from the mac group they ignored us called left messages e-mail them and nothing they do have a web site after all this me and my wife have decided to move we are giving chase the house deed back we to would like to get in on a law suite as well good luck to all there is no hope in the dream world watch out who you hire to fix it all.

  11. I am so shocked. I HAD NO IDEA THERE WERE SO MANY OF US.My story is the same as everyone . I went to lawyer today and he said I had a good case but it would cost so much to take them to court. I want to look into what it takes to go in as a group. Maybe because we have sooo many people someone would take it probono.

  12. There has to be a lawyer somewhere willing to take on Chase. They modification process was nothing more than a stall tactic in Texas. It’s faster to foreclose than get the paperwork thru for a modification. The Federal program was never going to work in Texas. Perhaps the lawyer in CA taking on WalMart has a friend…

  13. Another one here. I’ve been working with Chase to get a modification since February of last year. That’s almost 14 months! I’ve submitted and resubmitted documents time and time again. Typically, I’d get some notice in the mail saying my request for a modification had been denied because of missing documents! I found out you need to call in at least every other week to make sure they aren’t waiting on something, like an updated set of documents.

    I finally got notice this week that I was denied for a HAMP modification, but the next day I received an envelope which has a temporary payment plan offer – apparently it’s an in-house mod. The problem is – get this – the payments are $1100 more than my original payments on the loan were! All they did is give me the runaround for 14 months, accumulate late charges, interest, and payments as well as attorney fees for those times they tried to put my house up for sale. They added it all up and tacked it onto my payments catch me up. They also did not lower my interest rate from the 6% it started with.

    So, I have a couple of weeks to decide what to do. Accept the terms of the temporary modification(trial) and hope I can afford it (and hope they actually make a decent permanent offer). Or I can do bankruptcy. I’m not sure what else I can do at this point.

    I’m so tired of dealing with them now that I just want something to get finalized. I don’t want to lose the house, but my options are VERY limited now.

    Thanks Chase – for nothing!

    • YES, the bankruptcy is the way to go! It will buy you time in your home & cost Chase an arm & a leg…well worth it! Then join the classaction that is bound to come…

  14. my husband and I have the same story as everyone else and we also believe something should be done about chase! Our credit is ruined and they have take ALL our money and continue to get the same run around as the rest of the comments i just read! I live in Florida and we should have a class action suit
    ..

  15. wow i thought i was the only one chase put me on a loan modifacation and i made the monthly payments in nov. they said they were no longing taking my payments had me send paper work for another mod. got served papers they were suing/ called and ask why and the only response was i didn’t make enough money whhich is bull crap bring on the lawsuit

  16. Same boat exactly. So much conflicting information through the mod process, I was denied twice even though I proved that their inputs on my npv were absolutely wrong. They even changed the data I entered and would not take my dispute. My \new\ relationship manger was completely clueless to my case, and offered 0 explanations to the wrong data and mishandling of my case, and basically hung up on my when I pressed her for information! One year of fighting, I’m seeking help through advocacy groups next, including NACA. Well see what happens. I was considering stopping paying, but can see here that hasn’t helped anyone either. They are an evil monster.

  17. wake up people a big LOL i didnt pay these creeps for 26 months and even though i was 100% eligible i didnt pay em a cent i told them time after time after time help me get a mod and then ill pay you untill then nonononono if yr having problems f them quit paying them stop being dreamers people geeesus i hear of this stupid people running giving chase 30 to 70k and they still foreclose on em its nutzzzzz .we lost our home jan 21st 2011 thanks creepy jamie dimon but we got 26 montsh free out of the creeps and i may just take the 2500 cash for keys too but its been 4 mos past the so called sale date where they couldnt even sell the thing for a 75k reduced price in goober idaho and its on a acre field lot with no yard so chase and oldddddd crappy freddie mac you can have fun dealing with the weeds once our kids our out of school then we will leave yr crappy home so you can loose another 75k plusd the ho owners lien and the txa liens and all .people my ADVICE:::: quit paying them its yr kids you need to worry about i was able to save up a good chunk not paying ugly old haggety jamie dimon and i stiffed em i also built the home and made 100k too off refing it so who lost ???????not me i would never allow a bunch of yuppie bankers to get one over me hahahahahahah and then i also proved the messed up on my mod and they showed my credit as being paid in full nothing like having your cake and eating it to huh ????and by the way crappy chase i have another home with old freddie mac with another bank do i see another 26 mos and 50k probably i say you people need to use the system to your advantage its called f chase and the banks they can pay me to live in the dump and then can have it back

  18. hey you out there can you read english IF YR HURTING AND NEED HELP AND ARE DELINQUENT MY ADVIC EIS QUIT PAYING YR FRIGGIN PAYMENTS UNTILL THEY HELP YOU YOU CAN GO 20 TO 26 MONTHS AND EVEN LONGER WITH OUT PAYING A CENT I WENT 26 MONTHS AND DIDNT PAY OLD HAGGETY JAMIE DIMON A PENNEY AND I DIDNT PAY HO DUES NOT TAXES NOR INS YOU CAN DO THIS THEY CANT GET BLOOD OUT OF A TURNUP RIGHT >??????RIGHT SO DO TI AND QUIT THINKING CHASE WILL HOLD YR HAND AND TREAT YOU LIKE THEY CARE THEY DONT OLD MAN DIMION MADE 9 MILL LAST YR DO YOU FEEL HE CARES ABOUT SDOME AVARGE JOE WHOS HURTING /????? we need to stand up and not pay em who cares what yr astupid credit report says its only a report not the end of yr life and chances are its already so messed up you can get credit but then who wnats any credit i own 3 cars and everything i own outright and will never ever again in my life have any bank loan and i have one credit card thats slll we need i am a home builder or experinacesd and im a fully optimistic guy i will rebound and uild my own home out right f chase and the banks their tooooo creeepy for this joe i experinaced it and home loan banks suck and i dont want it again or a car loan no way i and loans do do good together so quit paying and save to support yr family and kids in case you didnt notice homes suck theres oner on every corner and cheap like hookers hahahahahaha

  19. Here is a link to a fantastic article written by Gregory M. Lemelson on the ethics of mortgage loan default:
    http://4closurefraud.org/2011/06/03/gregory-m-lemelson-on-the-ethics-of-mortgage-loan-default/

    He makes several important points about the real problems the banksters have caused you, including clouding the title to your property permanently, so that you won’t be able to refinance or sell. No buyer will be able to obtain title insurance on your property, either, further harming you financially should you want to sell and move.
    Another important point he makes is that the banks are not requesting constant updates in your paperwork to determine if you qualify for a modification; they are making sure they have your bank account information and current employment records correct so that they can pursue a deficiency judgement and enforce it. With the information you gave them they can garnish your wages and make a draw on your bank account if you refuse to pay the deficiency judgement! You must read this article. Don’t give them ammunition!
    It’s time to stand up to the banksters. Class action lawsuits are often misguided because they limit the remedies the class body is entitled to. You often sign away your rights. Respond to foreclosure suits with counterclaims and keep fighting them at every juncture. File Chapter 13 and file an adversary motion to their motion for relief of stay. Put your money in a coffee can and stop paying these banksters!

  20. MY JOB WAS ENDING SO I PUT IN FOR THE LOAN IN JANUARY OF 2009 WAS TURNED DOWN AFTER THEY SAID DONT WORRY ABOUT THE PAYMENTS JUST TRY YOUR BEST THE LOAN WILL MAKE UPTHE DIFFERENCE. I WAS TURNED DOWN THEN THEY SAID START A NEW LOAN JUNE OF 2010 IWAS TURNED DOWN BECAUSE I WAS BEHIND AND NO JOB

  21. We have been trying to do a modification with Chase for thr past three years due them them alleging a shortage in our escrow. There is no way that there was a shortage and when I asked for an analysis they said that I would have to pay for it.We had to continuously submit documents as they claimed the forms had changed. We could never talk to the same person twice and they claim they don’t have a corporate office. In November we finally got a trial payment for the riduculous amount of $1200 which we paid for four months. After all of this they said it had to go back to the underwriters then they sent us a denial letter that was for someone else’s account. When we inquired about the error on the letter they just said, oops the other agent had hit the wrong button on the computer. They still have not sent a corrected letter. We are currently trying to do a short sale……we have had enough of the craziness.

  22. You can exercise your right to have your loan rescinded, too. See TILA:FDIC Regulation Z:USC Title 15>Chapter 41> subchapter1>Part B> ss 1635: the Right of rescission.

    Get a Forensic loan Audit. If there is more than a $35 error in your loan closing documents, or you have discovered recent evidence of violations of the Truth in Lending Act, you can make your lender repay everything you have paid into your account, including down payment and closing costs, & fees.

    There’s a downside: you tender your property, and move out in 20 days. This is a great way to end your relationship with your lender if you have a house you can’t sell. Read about the statute of limitations, and equitable tolling:
    http://stopforeclosurefraud.com/2010/04/20/tila-statute-of-limitations-no-limit-forensic-audit/

    Discovering that your “lender” sold your loan to Fannie or Freddie without disclosing it to you, failed to record the assignment at your court house, and evidence that your loan has been securitized could be the type of violation that will get you a pocket full of money for a house you can’t sell. All you have to do is write a letter to your “lender” demanding a rescission. Include the Forensic Audit or other proof of their violation, wait 20 days for a response or a check. If they don’t respond within those 20 days, you get to keep the house, free of all encumbrence as if the loan never existed. Read up on this at the above link.

  23. Here is what I have found, Ron: I searched the sec.gov site for records concerning my loan, which closed with WaMu in 2004. I took out a second in 2006.
    I found that WaMu securitized my loan two months after it closed. I was able to locate the Pooling & Servicing Agreement, the Prospectus and everything but evidence that my loan was in the pool. Why? They made that info protected because it put them in jeapardy. The only people who could get that info were investors, and they had to write to officers listed in Supplement D to get it.
    I exercised my Right To Rescind my loan, informed them by mail, and am waiting for the next big piece of bullshit to come in the mail from them.
    By law, they have twenty days to repay me every penny I paid on both loans, or I keep my house free & clear. If they pay up, they can have the house. WaMu never inspected it, it was worth only a fraction of the appraisal. I owed over $100,000 on a property worth $50,00. So now we wait…
    I would say loans closed with WaMu were not assigned to Chase, because they’d already securitized them. What Chase got was the right to SERVICE the loans.
    There were no Notes, thus no assignments. That’s why they can’t show a perfected Chain of Title. (duh)
    To answer your question, it depends on what you owe, and whether you are emotionally attached to your home. It is just walls and a roof, you know. Are you able to pay the $20,000, and if so, will you be debt free? Make a “pro and con” list and base your decision on logic. My last comment is that you can’t trust thieves and liars, Ron.

  24. I have been involved with the loan modification nightmare since March 2009. I have posted on this site numerous times about what we have gone through. I think I have aged ten years since it started. We had five trial programs. I contacted every Senator and Congressman in my state. I had to declare bankruptcy. My credit was destroyed. I tried over and over to find a law firm who would file a class action suit with no luck. We called Chase every day, sometimes more. And, today……..finally……we received the final modification papers in the mail. And they do say FINAL. I want to celebrate, but when I logged onto my Chase account online it says that we owe double what our payment is and when I called they said the money in the suspense fund hasn’t been released yet. So, more phone calls to start on Monday, but all I know is that I have in my hot little hands papers that are signed by Chase saying my modification is final, along with a huge bin of documents, every cancelled check, every registered receipt. I would like to think that within a week or so I will be able to finally pop the cork on the champagne and put this entire nightmare behind us, but we all know that with Chase, one can never be sure.

    My advice to all of you that are still in the middle of this, try to keep going, don’t give up, BUT dont let it kill you.

    I also have to send out kudos to Congressman Chris Smith of New Jersey. Had it not been for his office contacting the OCC on our behalf I truly don’t think this would have ever happened.

      • Great question! Just wonder if they remember who they are. They are the regulator of national banks and federal savings associations. Took them 4 years to drop the ball on the banks. They have offices in each one of the large banks. Bet they go to lunch everyday with them to. Last CEO of the O.C.C for a lobbyist for the banks.

        The OCC’s primary mission is to charter, regulate, and supervise all national banks and federal savings associations. We also supervise the federal branches and agencies of foreign banks. Our goal in supervising banks and federal savings associations is to ensure that they operate in a safe and sound manner and in compliance with laws requiring fair treatment of their customers and fair access to credit and financial products.

        The OCC was established in 1863 as an independent bureau of the U.S. Department of the Treasury. The President, with the advice and consent of the U.S. Senate, appoints the Comptroller to head the agency for a five-year term. The Comptroller also is a director of the Federal Deposit Insurance Corporation and NeighborWorks® America.

        • There is substantial evidence that the OCC is acting in collusion with the big banks in their fraud: An article in the AJC recently stated that the FDIC is going after (suing) insiders at a failed GA bank, mortgage investors are suing banks in State courts, and of course the banks are suing each other. After four years, not a single action has been brought against the Wall street banks, despite a deluge of complaints having been filed. The Department of Justice isn’t dispensing any Justice, either. This makes me suspicious that the O.C.C. was fully aware of the fraud the mortgage contracts were originated in, yet they are not doing their duty in oversight, correction and restraint. There’s usually just one reason…money.

  25. I was laid off from work at the end of March 2011, and was told by a neighbor that Chase would not modify our loan unless I was late. So I didn’t make April payment. They contacted me and I told them I was unemployed and they said I might qualify for an “unemployment forbearance”. I filled out paper work and sent it in. Never heard back. They finally called and told me I didn’t qualify for “unemployment mod” and that I needed to fill out paperwork for “loan modification”. Now it’s July and they contact me to say I didn’t fill out paperwork properly. I went to their website and print out the paperwork and send it in. They called my wife and spoke to her and began asking her questions (she didn’t know anything because I was handling it – I was not home because I visiting my brother for 2 weeks in L.A.) my wife didn’t know what to tell Chase and mentioned I was out of town and I would contact them when I got back. Chased called and I spoke to a rep who told me our house is now in foreclosure. I asked what happened to the loan modification and he told me the file is sealed and that I needed to re-submit paper work. Again I went to the Chase website and printed loan modification paperwork, filled it out and sent it in (3rd time now). Got a call from a lady a week later; I explain everything all over again giving her our financials and employment situation. She tells me we qualify for loan modification then gives other numbers for HUD & Keepyourhomecalif web site info. One day later I get a FedEx with same paperwork we filled out 3 time now, plus a denial letter stating we don’t qualify for loan modification – no explanation why. I’ve never missed a payment and was never late prior to getting laid off. These banks are out of control. They got all this bailout $$$ and won’t help the folks that got screwed by them writing bad loans to people undeserving. My credit was perfect before this, I have zero balances on about 5 different credit cards and these banks are denying anyone and everyone. Financially, the banks make money on short sales in lieu of the government giving them a small dollar amount to modify your loan… Chase is a shameful scam bank. We need to scream from the mountain tops about this injustice!

  26. Hello NOra,

    My name is Myra. My mom did a loan modification with chase and the just received a letter from chase saying that loan modification did not go through. could you please sent me a copy of ebook The Foreclosure Defense Handbook.

    Thank you

    Myra

  27. The realities of dealing with liars and thieves: You can’t trust anything they say to be true, and they can’t modify loans they don’t own or have a vested financial interest in.

    They have been stepping up their foreclosure pace and I believe it is because the American people are about to prevail over corporate greed, and their days of doing this crap are numbered. Americans are not going to lay down and take it, like the banks thought they would. We are not more tractable, more easily managed by being made homeless, we are infuriated. They have no idea of the kind of fury that awaits them in main street.

    Many of you have been confused, brainwashed and deliberately misled by the corporate media whore–television and radio all owned by the really evil people behind the whole foreclosure crisis–the ruling elite who’ve seized control of our government both through deceit and the placement of their members with great political influence. We are dumbed down, numbed by bad TV and misinformed. You must get a copy of, The True Story of The Bilderberg Group by Daniel Estulin and educate yourself on who the bad guys are. The foreclosure crisis will fall into perspective when you understand their true goal; a ruling class and a slave class to serve them. They are siphoning off all of the resources and wealth, after de-industrializing America, leaving us destitute, ill and unable to resist their planned domination…yet we do. They will not win. We are uniting in an assault on them that will put them in jail where they belong for crimes against humanity and treason. We are resourceful, intelligent and capable. We invent things, explore cold fusion and new sources of limitless energy and abundance without the greedy corporate middle men who seek world domination through central bankers.
    End the Fed, Ron Paul. Secrets of the Temple-How the Federal Reserve Runs THe Country, by Willaim Greder. 13 Bankers, by Simon Johson and James Kwak. The Creature From Jeckyll Island, by G Edward Griffen. Load these onto your Kindle and turn off PBS. It’s time to mount the Revolution and overthrow the overlords.

  28. Nora, its been 23 months, haven’t made one payment. I have told them to foreclose several times, but they keep asking me what my intentions are? Ha! Seriously? I wonder what theirs are? I haven’t even tried to modify considering all of the stories I’m glad. I am about three months away from being debt free and I have a decent income. I have mers on the title its a Ginnie loan and worth about 66% of what I owe and needs some work, roof, siding, and I am not going to fix it. At this point I don’t think they even want it. I live in ND (judicial). What would you suggest at this point? I would like to negotiate for the real value? How would I go about doing that? Since we all know that it nearly impossible! to get through to anyone at chase!
    Deb

  29. Nora, I am in the sameboat as Mike. Beendealing with Chase and my dilemma since I called them in 2008 while I was current hoping to avoid this nightmare. They told me there was nothing they could domunless I was in arrears. There are so many different deparments and so many untrained employees. Any advice would be helpful as I am a single mom with a disabled son.