Loan modification with Chase

[LadyT]

Hi! I have a dear friend who came to me for help, but I've not any experience with loan modifications, so hoped you all could help me out! I've done quite a bit of reading here on the topic, but can't seem to find a case quite like hers...

 

My friend and her hubby have a mortgage that was not reaffirmed in their BK in Nov 2009, although they have continued to make payments and have kept the home. Hubby injured his knee and had to have surgery. He is self employed and missed about a month of work. They had been doing ok up until this point, although living paycheck to paycheck with no $$ to cover that month and they fell behind. They are currently 2 months behind on their mortgage. She's called Chase, but for payment arrangements, they want more per month than they can pay. They send her a loan mod packet, which she filled out and returned last week, hasn't heard anything yet.

 

Her question is: How does a loan mod work on a house included in BK? Does taking the modification reaffirm the debt on the property? Will they automatically deny it because the note was IIBK?

 

I believe this is an in house mod from what I've reading? She hasn't applied for HAMP or anything like that, simply a few mod forms from Chase. How does this process work?

 

Thanks for any help you can give her!

[tiggerlgh]

No a Loan Mod will not reaffirm thier property. There should be language in there confirming that. And yes assuming the qualify they can get a loan mod on a BK property.

Edited April 5, 2012 by tiggerlgh

[jmw1212]

I've been told the in home mod's will be denied if not reaffirmed, but the HAMP ones cannot be denied due to not reaffirming or iib. Tell them to try for the HAMP mod.

 

Hi! I have a dear friend who came to me for help, but I've not any experience with loan modifications, so hoped you all could help me out! I've done quite a bit of reading here on the topic, but can't seem to find a case quite like hers...

 

My friend and her hubby have a mortgage that was not reaffirmed in their BK in Nov 2009, although they have continued to make payments and have kept the home. Hubby injured his knee and had to have surgery. He is self employed and missed about a month of work. They had been doing ok up until this point, although living paycheck to paycheck with no $$ to cover that month and they fell behind. They are currently 2 months behind on their mortgage. She's called Chase, but for payment arrangements, they want more per month than they can pay. They send her a loan mod packet, which she filled out and returned last week, hasn't heard anything yet.

 

Her question is: How does a loan mod work on a house included in BK? Does taking the modification reaffirm the debt on the property? Will they automatically deny it because the note was IIBK?

 

I believe this is an in house mod from what I've reading? She hasn't applied for HAMP or anything like that, simply a few mod forms from Chase. How does this process work?

 

Thanks for any help you can give her!

[tiggerlgh]

I've been told the in home mod's will be denied if not reaffirmed, but the HAMP ones cannot be denied due to not reaffirming or iib. Tell them to try for the HAMP mod.

 

Hi! I have a dear friend who came to me for help, but I've not any experience with loan modifications, so hoped you all could help me out! I've done quite a bit of reading here on the topic, but can't seem to find a case quite like hers...

 

My friend and her hubby have a mortgage that was not reaffirmed in their BK in Nov 2009, although they have continued to make payments and have kept the home. Hubby injured his knee and had to have surgery. He is self employed and missed about a month of work. They had been doing ok up until this point, although living paycheck to paycheck with no $$ to cover that month and they fell behind. They are currently 2 months behind on their mortgage. She's called Chase, but for payment arrangements, they want more per month than they can pay. They send her a loan mod packet, which she filled out and returned last week, hasn't heard anything yet.

 

Her question is: How does a loan mod work on a house included in BK? Does taking the modification reaffirm the debt on the property? Will they automatically deny it because the note was IIBK?

 

I believe this is an in house mod from what I've reading? She hasn't applied for HAMP or anything like that, simply a few mod forms from Chase. How does this process work?

 

Thanks for any help you can give her!

 

That may depend on the investor (not the bank) but I know for a fact Loans CAN BE Modified (outside of HAMP) after a BK.

 

http://www.loanmodsource.com/2011/06/17/home-loan-modifications-bankruptcy/

Edited April 5, 2012 by tiggerlgh

[jmw1212]

That was a great article, thanks for posting it. I was told by a rep at PNC the investor would not modify our loan without reaffirmation. I'm sure they are told to say that so homeowners go ahead and reaffirm, but my attorney was very addiment about NOT REAFFIRMING! So I listened, I just hope we can work out something with a loan mod. That article gives me a little hope now:) thanks.

 

I've been told the in home mod's will be denied if not reaffirmed, but the HAMP ones cannot be denied due to not reaffirming or iib. Tell them to try for the HAMP mod.

 

Hi! I have a dear friend who came to me for help, but I've not any experience with loan modifications, so hoped you all could help me out! I've done quite a bit of reading here on the topic, but can't seem to find a case quite like hers...

 

My friend and her hubby have a mortgage that was not reaffirmed in their BK in Nov 2009, although they have continued to make payments and have kept the home. Hubby injured his knee and had to have surgery. He is self employed and missed about a month of work. They had been doing ok up until this point, although living paycheck to paycheck with no $$ to cover that month and they fell behind. They are currently 2 months behind on their mortgage. She's called Chase, but for payment arrangements, they want more per month than they can pay. They send her a loan mod packet, which she filled out and returned last week, hasn't heard anything yet.

 

Her question is: How does a loan mod work on a house included in BK? Does taking the modification reaffirm the debt on the property? Will they automatically deny it because the note was IIBK?

 

I believe this is an in house mod from what I've reading? She hasn't applied for HAMP or anything like that, simply a few mod forms from Chase. How does this process work?

 

Thanks for any help you can give her!

 

That may depend on the investor (not the bank) but I know for a fact Loans CAN BE Modified (outside of HAMP) after a BK.

 

http://www.loanmodso...ons-bankruptcy/

[SportsNut]

That may depend on the investor (not the bank) but I know for a fact Loans CAN BE Modified (outside of HAMP) after a BK.

 

http://www.loanmodsource.com/2011/06/17/home-loan-modifications-bankruptcy/

 

Must be an old article; it mentions ability to refi a mtg 2 yrs after Bk.

Now, and for the past yr or two, it has been 3 yrs seasoning after Bk to qualify for a mtg.

Not challenging the main message of the article, just commenting on the probability of when it was written, or the author was ill informed.

[tiggerlgh]

That may depend on the investor (not the bank) but I know for a fact Loans CAN BE Modified (outside of HAMP) after a BK.

 

http://www.loanmodsource.com/2011/06/17/home-loan-modifications-bankruptcy/

 

Must be an old article; it mentions ability to refi a mtg 2 yrs after Bk.

Now, and for the past yr or two, it has been 3 yrs seasoning after Bk to qualify for a mtg.

Not challenging the main message of the article, just commenting on the probability of when it was written, or the author was ill informed.

 

You are correct not sure when it was writtend and just gave it as one source of evidence. But I do know that a loan can be modified after BK that part hasn't changed.

[LadyT]

You guys are awesome! Thanks!

[SportsNut]

You guys are awesome! Thanks!

 

You puppy dog is awesome too. Is that a picture of yours...?

[LadyT]

You guys are awesome! Thanks!

 

You puppy dog is awesome too. Is that a picture of yours...?

Thanks, yes it is! His name is Dash, he's six now, but looks about the same!

[SportsNut]

Thanks, yes it is! His name is Dash, he's six now, but looks about the same!

 

Well Dash is the cutest... well right up there with my lil Freddie boy anyway.

What breed is Dash, I can't tell from the angle of the photo since taken above him.

How much does he weigh now? Very cute.

 

Back to the discussion on Chase for a moment... I've got a Chase Mtg, post Bk and did not reaffirm, but paid and stayed.

Well, paid until Mar pymt, and now Apr pymt that is. Just got a piece of hot o/n mail from Chase today... they wish to lower the int rate by 1 5/8%, subject to a number of conditions... it is a refi of the loan, and obviously pers liability too on an underwater property. NOT happening.

So we will see what the next step is on the merry go round.

[LadyT]

Thanks, yes it is! His name is Dash, he's six now, but looks about the same!

 

Well Dash is the cutest... well right up there with my lil Freddie boy anyway.

What breed is Dash, I can't tell from the angle of the photo since taken above him.

How much does he weigh now? Very cute.

 

Back to the discussion on Chase for a moment... I've got a Chase Mtg, post Bk and did not reaffirm, but paid and stayed.

Well, paid until Mar pymt, and now Apr pymt that is. Just got a piece of hot o/n mail from Chase today... they wish to lower the int rate by 1 5/8%, subject to a number of conditions... it is a refi of the loan, and obviously pers liability too on an underwater property. NOT happening.

So we will see what the next step is on the merry go round.

Thanks Dash is a short leg Jack Russell, so he's a little shorter full grown than many Jack Russell's. He weighs about 16 pounds now. In the picture, I think he was about 4 pounds. What breed do you have?

[SportsNut]

Thanks Dash is a short leg Jack Russell, so he's a little shorter full grown than many Jack Russell's. He weighs about 16 pounds now. In the picture, I think he was about 4 pounds. What breed do you have?

 

A litle Beagle... he is also short legged, I think they call it a bench legged Beagle. Stray, was lost and wondered up to the back door 2 yrs ago... he is the best guest-come-a-calling that I have ever had. The sweetest little creature ever!!! He is my shaddow.

[LadyT]

What is this 31% income number I keep reading about? Is that a special number for the modification?

 

She is self employed, and her husband works full time for the schools. She called yesterday, and they want a profit/loss income statement for the year (she's already sent their taxes for 2 years). Can someone tell me about the income requirements for modifications, I have no idea if she's on track or not! Thanks again for all of the help, this is outside of my ability to "help".

[SportsNut]

What is this 31% income number I keep reading about? Is that a special number for the modification?

 

She is self employed, and her husband works full time for the schools. She called yesterday, and they want a profit/loss income statement for the year (she's already sent their taxes for 2 years). Can someone tell me about the income requirements for modifications, I have no idea if she's on track or not! Thanks again for all of the help, this is outside of my ability to "help".

 

The targeted or proposed modified pymt shouldn't exceed 31% of agi (adj gross income). Take avg annual agi for the past two yrs, divide by 12 = mo agi, x .31 = the targeted monthly piti of a modified pymt. They will usually use a 40 yr amortization on the modified pymt calc. From this figure they can determine what the proposed modified int rate would be and also if there is to be any principal reduction as well.

 

YTD statement: With a self employed person they will often want to see a YTD P&L statement, to see how the biz is doing financially. Or in the case of a lender, maybe inch the modified pymt up potentially.