Chase Loan Mod Rejected - Game Over?

[onthebrink]

We have been working with a loan mod specialist, who has been handling all the paperwork and discussions with Chase. Sent them (the loan mod specialist) all of the paperwork they requested. Today we received a letter from Chase stating that our request for a loan modification had been rejected because we did not supply all of the documents they requested. I scanned a copy of the letter and sent it to the loan mod specialist, with whom I'll speak on Monday to discuss our options.

Does this mean that a loan modification is out completely?

[ryan]

Just out of curiosity, why would you need a 'loan mod specialist' to apply for modifications on your Chase loan?...

[HHM]

Whether you have a loan mod specialist or not, that letter (we did not receive your paperwork) appears to be a standard tactic of most banks. Normally, I don't go down the conspiracy theory road, but I do believe that they send that letter to see how committed you are to getting the loan mod. They received your paperwork, they have simply lost it, mishandled, and most of the time, don't care.

This is probably not your loan mod specialists fault, but at the same time, you DO NOT NEED someone to help you, and you certainty should NOT BE paying for the service.

[vicmost]

It is a conspiracy!

)

Whether you have a loan mod specialist or not, that letter (we did not receive your paperwork) appears to be a standard tactic of most banks. Normally, I don't go down the conspiracy theory road, but I do believe that they send that letter to see how committed you are to getting the loan mod. They received your paperwork, they have simply lost it, mishandled, and most of the time, don't care.

This is probably not your loan mod specialists fault, but at the same time, you DO NOT NEED someone to help you, and you certainty should NOT BE paying for the service.

I've been planning my Chapter 13 for over a year now. I was waiting for my home value to drop below what I owe on my first so I could lien strip my second...During this time I applied for a loan modification and I received the 3 months "trial period" made all of the payments plus two additional months payments (all on time) and was told I didn't make enough money to qualify?
I challenged them on this ruling because I made the exact the same amount of money as I did when I applied and they requested "more documentation". I submitted the "documentation" and shortly after that I contacted them to let them know my wife just got a job and my income would be increasing even more. They informed me that the hadn't received the requested documents and that I was no longer in a modification plan...I called back and had them review my account and they did find that they indeed had received the required documents but at this point all they could do was let me reapply and they would "investigate" the issue and would re-instate the original modification...(b/s)...I did reapplied and received a higher modification payment..whoopee
Now My arrears are much larger than before because of all the partial payments made to the 1st mortgage and I will have a much more difficult time presenting a reasonable budget to the court...
And now I am also racing to get my BK filed because my home value has hit it's peak low and has been rising dangerously close to my 1st mortgage principal.
I would have been much better off filing June of 2009. My chapter 13 payments would have been lower and 12 payments completed!
There just stringing people along! I've read that Wells Fargo's Modifications have a success rate from 6% - 22%.
If you have a pulse they will put you in a "loan modification".
To get finalized you need a year of endless phone calls explaining the same thing over and over again to a different operator who has absolutely no authority and probably knows less about what is required than you do..and then maybe you will get approved....maybe
The lottery has simular odds!

[ryan]

)
There just stringing people along! I've read that Wells Fargo's Modifications have a success rate from 6% - 22%.
If you have a pulse they will put you in a "loan modification".
To get finalized you need a year of endless phone calls explaining the same thing over and over again to a different operator who has absolutely no authority and probably knows less about what is required than you do..and then maybe you will get approved....maybe
The lottery has simular odds!

THat sounds EXACTLY like BofA's Modification Plan. Only its not as well-designed!

[feelingnutsy]

In other words---once you start down the road of modification---even if you
have gotten an NOD---then it can take up to a year for approval of a mod?

[justbroke]

Getting a loan modification seems to be a lot of work these days. I received my modification just after filing Chapter 7 (and asking for it just after filing). It took 6 weeks. I use eFax and my entire "package" is always ready to go. I tell them that the whole package is electronic and I can re-send it in seconds if they want it.

As a matter of fact, I came up with my own spreadsheet listing EVERY conceivable expense and all nicely formatted. I did this because I came out of a Chapter 13, where my budget was pretty precise. They -- the bank -- never had any "questions" for me. I may have been lucky as I always faxed to my rep's direct fax number. I also called them every 7 days on Fridays, to make sure they didn't need anything.

When they asked for it, I sent it twice. When they asked for "updated" paystubs, they had them within 5 minutes. I didn't give them any excuses, and it was Bank of America.

[vicmost]

In other words---once you start down the road of modification---even if you
have gotten an NOD---then it can take up to a year for approval of a mod?

I can't comment on BAC only Wells Fargo. The minimum time with them would be at least 4 months (3 months of trial period and then 30 to 60 days for approval).

[justbroke]

I did mine in 6 weeks, permanent modification, recorded and no "trial" payments.

[freeatlast98]

BAC NightmareIt gets worse!!

I have been trying for a loan modification for months. I was told by CSR's at BofA, I needed to be late so I missed May's payment and now June's. Every time I called BAC for an update, I was told it was with a negotiator and an update was expected by July 8th. Today I again called and apparently all I am being offered is a "recast" which apparently means the missed payments will be placed at the end of the loan. I again explained, I need a modification not a "recast". I had sent all the required documents bank statements, hardship letter and all my financial information. Now on top of everything else, the rep today told me I should be receiving a "Notice to Foreclose" because it has been mailed to me. How can they do this after just two missed payments? What can I do to have them consider me for a modification? Please anyone, let me know what to do now?

[justbroke]

You are in California and probably have a Deed of Trust with a Power of Sale clause. They can find you in default once you're just 31 days late. They don't have to wait the "traditional" 91 days. (Noting that in some States, the lender/trustee needs to actually wait 91 days before they can threaten acceleration.)

You can't FORCE a lender to consider you for a modification. Have you tried under HAMP? Hopefully you saved your "missed" payments just in case you need to cure the default.

[freeatlast98]

You are in California and probably have a Deed of Trust with a Power of Sale clause. They can find you in default once you're just 31 days late. They don't have to wait the "traditional" 91 days. (Noting that in some States, the lender/trustee needs to actually wait 91 days before they can threaten acceleration.)

You can't FORCE a lender to consider you for a modification. Have you tried under HAMP? Hopefully you saved your "missed" payments just in case you need to cure the default.

I tried to save both payments however, I do have at least one of the payments or will by the end of the month. I don't qualify for a Hamp because my loan was redone May 2009 however, I know there are "in-house" modifications that someone mentioned I might be able to apply for. I had the rep I spoke to today, cancel the "recast", it just seemed like a waste of time. She said to call back on Friday because by then the "recast" would be out of the system. She said I could then possibly apply for a modification.
I'm so...frustrated with them. I just need help to get my life back on track. Any ideas?

[justbroke]

I just need help to get my life back on track. Any ideas?

I completely understand, and, unfortunately, I have no ideas. These Banks have been terrible to deal with.