Attorneys General across the country are ordering a halt to foreclosures by Chase as investigations are being conducted about the procedures used to kick people out of their homes.  Were many of these done illegally?  That is the question as charges of negligent business practices are being brought forward by the majority of states.  How will this affect the housing market and specifically the Chase homeowners who were at risk of losing their home?

Chase borrowers have been frustrated and angered by the lack of cooperation and communication when they contacted the bank to find a home retention solution, such as a loan modification.   Months and months of delays and misinformation left most homeowners feeling like they were getting nowhere with the bank.  Many times a loan modification would be in process in one department, only to have a separate department proceed with a foreclosure filing.  Obviously there needs to be a more organized and effective procedure in order to properly address this problem.

After all of the problems, delays and errors, can a homeowner finally catch a break?  How can this foreclosure suspension be used to benefit borrowers and help them to keep their home?  It seems logical that since foreclosure is off the table, at least for now, that a loan modification would be a viable option again.  From the bank’s standpoint, some money coming in on defaulted loans is better than no money at all.  In addition, those toxic assets will just sit on the books for months while this mess is sorted out, so why not get them modified and paying interest again?

Chase borrowers should really take advantage of this opportunity and not waste any time in contacting the bank to re-apply for a loan modification.  Even those homeowners who were denied in the past can now use this new development to their advantage.  Take the time to prepare and submit a new application-this time be certain that the paperwork is prepare correctly so that it meets the approval guidelines.  Even though this is a second chance, you must prove that you meet the criteria so that a permanent solution can be offered.

Prepare your application correctly!

Susan Gregory is the author of two resource books for homeowners and real estate professionals, the best selling The Complete Loan Modification Guide Kit and The Stimulus Book-HAMP & HAFA Edition.  She also teaches workshop training classes for the federal programs to help real estate professionals assist homeowners with home retention and exit strategies.  The Complete Loan Modification Guide kit provides a valuable resource for borrowers that includes a step by step handbook, required forms, and a software program that mimics the federal approval triggers for loan modification.  An advocate for homeowners, Susan also offers free 30 day email support for all of her clients who purchase her publications.  Thousands of homeowners have been helped using these materials.  Visit http://www.myloanmodficationcenter.com for more information.

14 Responses

  1. Ron Said,

    Office of the Comptroller
    Fax 713-336-4301

    How about a little help from someone ??
    HAMP and HOPE are not working well !!!

    Tales of a Chase Loan Modification Attempt.

    I saw the recent investigation into the HAMP loan modifications on the TV.

    What hit home was Loman from Chase. What a jerk, but then again he works for Jamie Dimon. Unfortunately, my home loan is with Chase. Some points on this are below.

    1. When I was terminated from my job in Cincinnati, I called Chase and told them of the situation. They said don’t bother until you are 60 days behind. I am 61 years old and out of work in this economy – I knew it was going to be a problem.
    2. I again contacted Chase in Sep 2009 and was put into their Trial mod program where I stayed and made 8 trial payments.
    3. All this time it was never clear whether I was in a Hamp program or a Chase program. I never received anything in writing.
    4. Ultimately, after submitting all of my documents at least three times and some documents more than that – as well as enduring their collection calls even though I was in their program – they sent a modification offer that was 60% of my income.
    5. I called them and they reviewed the NPV and finally admitted they were wrong.
    a. Actually I received letters saying I was disqualified due to my income level. They interpreted that I had $15,000 per month of income, even though I was unemployed. But each time they said they would correct it.
    6. The error was on their inability to read a P and L, which they kept requesting on a business that we no longer owned. We no longer owned the business because of my unemployment – we had to sell it to have money to live on. But due to no one being able to get money from a bank, we had to finance it to the buyer and take monthly payments. It appears that Chase interpets this as “self employed”.
    7. I got a call on May 4, 2010 saying a new mod was approved for $1600 per month and I was to NOT sign the original offer but to sign the NEW one. However, it never arrived.
    8. I received a letter from Chase saying “my request for a short sale was denied”. The only problem with that was, I never requested a short sale.
    9. Chase some time prior had requested the sale documents on the business we sold, and in their final review of the file – some uneducated loan person thought it was an offer for a short sale.
    10. Therefore, when that occurred the modification offer was withdrawn. I had even tried to make a payment, but they would not take it as a modification was being offered.
    11. Ultimately, with the HOPE people on the phone with Chase, they again admitted the error.
    12. However, the only solution they said is to start over. June 5, 2010
    13. Chase sent me a new packet to complete. I did so. June 9, 2010
    14. Got a Foreclosure letter. Called Chase and they said it related to the ORIGINAL modification that they botched, but had coded it incorrectly so I got a foreclose letter. I was assured that it would be corrected.
    15. Chase asked for more documents, I complied. June 23, 2010
    16. Chase has sent me letters saying they are going to foreclose.
    17. I got a letter from an attorney that Chase hired to contact me about collecting the debt. June 26, 2010
    18. Got a request for more documents, the same ones I sent last week. June 28, 2010
    19. Today is July 7th and I have no idea what is up.
    20. July 13th. I got a call from Chase asking if I had sent back my loan modification documents. WHAT DOCUMENTS, I asked. I asked the guy to read my file to make sure some had been sent, as I had just spoken to them last week and it was not even in underwriting. He did and then saw none had been sent. So then he AGAIN asked about me unemployment and my wifes income. I think just to cover up his error. Then he saw that the 4506T was for 07 and 08, but not 09. So he demanded I send in the IRS extension form for 09. He accused me of being sarcastic, when I asked him to read the file. He also stated, “ Well this is better than trying to collect $30,000 from you, isn’t it?”
    21. Sent the IRS extension via fax and mail on July 14
    22. Some guy in a pickup takes photos of house and says it is for Chase. Mid July.
    23. Chase called to just let me know they are working on things. I told them I faxed and mailed the IRS extension they requested. A guy named Ryan.
    24. Chase call just to see how things were. Strange, that makes three days in a row.
    25. Chase called and hung up. July 17
    26. Got another letter dated July 13th confirming my request for a modification.
    27. Got a call from “Ryan”, again asking if I had mailed back my modification that was sent to me in April. I AGAIN explained the whole deal again as before.
    28. This time he finally concluded, after again reading the file that they were missing the promissory note on the sale of the business that show’s Sherri’s income of $2610 per month. July 21
    29. I faxed for at least the fifth time a copy of the note. July 22.
    30. July 28th, received letter saying this was the last time they would request the 4506 T and EZ forms. I both mailed and faxed the same copies I have sent several times before.
    31. Received letter from collections saying I have made an incomplete payment and to send $29,000.
    32. Received letter stating they had received my complaint on them. Does not say but must be the one filed with the Controller of Currency. They will look into it and get back to me. Please be patient. JULY 23,2010
    33. Got a guy taken pictures and gave me a brown note to call a 866-316-9218, it is home asst dept, it says on the note. It is Chase.
    34. Chase said to send updated income, unemployment, utility bills and bank statements on loan modification. Aug 24.
    35. Saw that Chase is sueing me to foreclose on local court website.
    36. Called Chase, they admitted that they wrote it off, but know one is saying why. They admit they had not contacted me about it at all. Aug 25
    37. Called Mona Konopka at 904-462-3268. Says she will get back to me. Aug 27
    38. Debra Cardoza called to request updated 4506 and an HOA letter. Asked her about the second, she still knew nothing, she obviously had not checked anything out. Aug 31.
    39. I asked Debra to check the file on the second and she said she did see where they had received the mod paper work on the second. But it was stopped due to short sale notes. I asked her how a short sale can occur on a second?? She said it cannot unless it includes a first. She is to get back with me in a couple of days on it.
    40. Leland H. called from the US Treasury, wanting to ask if Chase had modified the loans, as they have told him they have. I laid out what has happened so far. End of Aug 2010. He said he will get back to me.
    41. Fax the documents that were requested on Sep 1, 2010. Received receipt that Chase also got documents on Aug 31 by certified mail.
    42. Sep 6 ,2010 – received lawsuit from Deutsche Bank / JP Morgan
    43. Sep 7, 2010 – received letter from Chase dated Aug 31, requesting the documents that they have received, to continue the modification.
    44. Debra Cardoza called. Said to resend bank statements and that is all that is needed before sending to underwriting. Said she knows nothing about the Deutsche Bank lawsuit. Faxed bank statements at 2:30 pm sep 8, 2010.
    45. Joe M at HAMP says Chase will do an “internal” modification not a HAMP modification. Still waiting. Lawsuit is still there.

    This is the short version – I really do not know how many phone calls and letters have been made. In the end, it is likely that I will have to take bankruptcy, not just due to the Chase thing – but really due to the lack of capital available to small businesses as that that is what I do – save small businesses.

    WHO really knows what Chase is up to. I now need an attorney to handle. WHY, because Chase is a bunch of uncaring idiots. Over the 10 months I have had to deal with them, I must have talked to 50 different people. They all complained about how the Chase system works.

    I have contacted my Congressman here – Dennis Moore. That was a worthless call. The others here, the senators when contacted just want you to go away. All any of them do is send you the regulations, but they do not want to help. At least not until time to vote.

    I am sending this to the two Ohio congressmen who at least had the balls to go after Loman at Chase. He and Dimon should be canned for all the damage they have done to homeowners. They certainly do not say to the homeowner that the last thing they want to do is foreclose – it is a constant threat !!!! So either they lie to Congress or to the homeowners – which is it??

    I really do not understand the HOPE thing, getting those people to do anything other than maybe listen in on a phone call is impossible. All they seem to have is “maybe” a special number to call at a lender – but once on the phone they do nothing. They certainly do not return phone calls or answer emails.

    Although I now live in Kansas, I was in the process of moving to Ohio. At least in the year I did the project in Ohio, I saved over 100 jobs there with a company that was going to close.

    If you need someone to testify on how difficult these banks are – let me know – they do not scare me. In my job I have to deal with banks, I should say when I have or get another job. They are always arrogant and difficult – even when they know they are wrong. Stealing homesteads like is shown in the Old West movies of bankers, is really pretty appropriate.

    My opinion is that anyone that is unemployed should not be foreclosed on at all for the next year. Also the bank should give an immediate forbearance to the unemployed for that year. That gives them time to regroup – get a job and have a buck or two. Then start a trial plan based on their income then.

    Also, I think you need to let bankruptcy judges handle the HAMP cases that go into a bankruptcy. There needs to be equity on both sides, not just for the Banks that created the problem and got billions from the people that are now unemployed or bankrupt.

    Posted on October 16th, 2010 at 1:18 pm

  2. Jwhite Said,

    My story is very long I will try to get right to the point. I entered the making home affordable plan in march of 2009. I was never told about the trial payments affecting my credit score. They had me on these payments until march of 2010. I was than told I didn’t qualify because my home didn’t appraise for the value owed. Which no houses were. Anyways they than offered to put me “in house” program. So they kept the trial payments until my final loan modification papers came in May of 2010 they were signed by me and chase and notarized. They said not to make a payment until July and had the new lower payments I was so happy after a year and a half of pure torture by them it was over. Well here comes the end of September I get a letter saying they need more financials to complete my paperwork but my paperwork and loan was done I thought. I called and what do you know I know have my underwriter answer all my calls. He blames Fannie Mae for switching loan numbers. I call Fannie Mae they say that’s false so I call Chase and they come clean and they admit a clerical error and they need to redo the whole thing. Well not my fault it’s been going on two years!! My credit is so messed up because of them because of this suspense account stuff which I don’t get. I know I’m getting threaten with foreclosure but I’ve made all my payments. Given they are the new amount we agreed on in the new loan we all signed. I have now had to hire an attorney. How can you give someone a final modification sign it than find an error four months later and try and take it back. And these past four months they are still holding my payments in suspense messing up my credit even more.

    Posted on November 6th, 2010 at 10:16 am

  3. Vernon Pepper Said,

    Chase bought my loan from Cenlar in October 2010. I was already doing a Forbearance with Cenlar when Chase bought them out. Cenlar told us to keep making the Forbearance payments to Chase until December 1st. We talked to Chase the end of November to find out where they were at with the loan modification. Cenlar and Chase both told me that they do a Forbearance which loweres your payment temporally while they work on the loan modification. Anyway I called Chase the end of November and they told me that we didn’t make a payment for July 2010. We were with Cenlar at the time and not Chase and we did make that payment and had proof. We told them we made that payment to Cenlar and we had proof that we paid it. They told us because we defaulted on the forbearance by not making that payment so we know longer qualified for the loan modification. Know they are trying to charge us 6,000 dollars for being 2 months behind and the fees of them lowering our mortgage for the 6 months. They will not let us talk to a manager to straighten this out. When you are doing a forbearance they want you to pay with a cashiers check or money order. I think they do that hoping you will not hold on to the informantion. If you pay with a check theres a paper trail. Well they weren’t counting on us keeping everything. I’m going to get an attorney and fight them on this.

    Posted on December 3rd, 2010 at 1:43 pm

  4. nat Said,

    Hi, I dealt with chase for over 3 years we got behind on our home payments when my husband became unemployed. We had a tennant in our home who became unemplyed and stopped paying the rent, this coupled with having to evict them, the $5000 dollars of damage they did and my husbands unemployment meant we got 3 months behind. When my husband got a we sent them the full 3 months payment, they sent it back and put us in forclosure. We spent three years going through attempted short sale, loan modification etc with continued lost documents and harrassing calls. I explained all this to the loan help people only to find out my house was forclosed and taken from us without any notification. it has been sold to a new owner and we still get letters from chase asking us to up date our martgage insurance. These people are thieves, if I had the money for a lawyer I would take them to court. if anyone hears of a class action let me know, even if I didn’t get a penny from it I’d be happy to give chase just a taste of the grief they put me through.

    Posted on January 8th, 2011 at 1:51 pm

  5. David Johnson Said,

    I’m on here for advice. I’m 23 and bought my first home almost 3yrs ago. Did food on my payments the entire time And I got laid off from a flood we had recently in Tn. Well now I’m 10 months behind and I contacted Chase when I got laid off and informed them I was receiving unemployment. And nothing was done about it and I wasnt making enough to pay my house note so I didn’t. I started working through temp angencies and tried a loan modification and was recently denied after sending all my info twice. Now it’s up for sale for a short sale and I still haven’t received a foreclosure yet. I’m not having any luck with the house being up for sale. I’m thinking my best bet is bankruptcy. But if I do then I’ll owe 8000 dollars for the first time home buyer thing Obama sent out. And on top of that I have a pregnant girlfriend at home and a world of weight on my shoulders. Please any advice!!!???

    Posted on January 15th, 2011 at 4:12 am

  6. G. Johnson Said,

    TO ALL OF YOU:

    Go to NACA.com – they will help!! They have a major battle going on with Chase. I, personally, am attending the event in Los Angeles – they will be there for 11 days – I am so excited. They are scheduled in many cities. I was referred to them by a paralegal (on the side) from my bankruptcy atty’s ofc. I had already started the process with them, so I’m halfway there. Major lenders will be there with same day solutions!!!!

    I was skeptical, too, but now know of several people that are now relieved from all the runaround and are able to keep their home. NACA.com

    Posted on January 19th, 2011 at 10:59 am

  7. Mrs Smith Said,

    I contacted Chase in regards to a letter I received, I am 2 months behind on my payments as on January 15th. Chase will not accept partial payments without putting them in suspense and then they call you every day until you get caught up. when I contacted them, they went over a mod with me, but it INCREASED my payments $150 a month for 1 year. HELLOOO, I have had some income cuts and that means I cannot afford MORE than I already pay. My payments are only $1275 a month, totally reasonable compared to rent in my area. When I asked why the payments were higher, she said it was due to my income being higher. I never discussed my current income with the lady on the phone, so where did she get that my income was HIGHER than it was when I got my loan in 2008? Now I am getting 5-6 times a day, recorded calls advising me this is an attempt to collect a debt, sometimes 30 minutes apart. Needless to say, I am not accepting their modification this time. Last time I spoke to Chase, I was told my credit did not qualify me for a mod and the fact that my home did not appraise for the loan value did not help. My house currently appraises at $30k less than I owe, which is VERY common in my area. Where are these people at Chase from? When will there be any help for hardworking people in this country to keep these THIEVES at the mortgage companies from stealing their homes away from them due to their manipulative way of handling paperwork and foreclosures.

    Posted on January 19th, 2011 at 1:43 pm

  8. Jewl Petteway Said,

    We are in the same situation as many others. But in Colorado state it seems we are losing the battle. I have contacted the Attorney General’s office and Congressman Jared Polis. The Colorado Attorney General says they are conducting an investigation in foreclosure fraud but because they have not completed that investigation, they can’t do much for us now and advised us to find private counsel. They asked us to file a formal complaint through their website.

    They say “We appreciate the time and effort you took in bringing your concerns to our attention. Information from the public is vital to us in helping us to properly document trends, pursue investigations, and ultimately to file lawsuits on behalf of the public.”

    So keep telling your story, ESPECIALLY if you are in Colorado!

    Posted on February 4th, 2011 at 1:59 pm

  9. Johanna Carroll Said,

    IF you live in the State of Arizona be advised that Chase forced homes into foreclosure because they got ADDITIONAL bail out money to do so and avoided accepted short sales. I had three valid short sale offers on my home in upscale Sedona, Arizona. After six months of being jerked around by $8 a hour phone clerks who know nothing, my first buyer walked away. The ENTIRE first Trust Deed with Chase would have been paid and a portion of the Line of Credit. ZERO RESPONSE FROM THE BANK. I had two more very valid and secure short sale offers and once again, NO RESPONSE. ONE day before the Trustee Sale which was forced by the bank, they said they needed more money. The home went into foreclosure, was sold back to Fannie Mae and the bank received additional funds yet again. I am 64 years old, divorced and HAD a FICO score of 830+. My credit is ruined, and now my CPA tells me I will probably have to pay the IRS about $20,000 which I do not have. The bank is not cooperating in sending any closing documents which by the way WAS OVER ONE YEAR AGO…..again, they are breaking the law. I had to get an attorney and SHE can’t even get anyone to send me the IRS documents I need, once again, breaking the law! I have lost everything, I am frustrated beyond belief. So the answer…….stop paying your mortgage, BUT UNDERSTAND the bank and the IRS are two entities and taxes will fall on your shoulders. This is rape beyond rape of the American People and like the guy said at the Oscars NOT ONE PERSON IS IN JAIL FOR THIS AND BONUSES ARE STILL BEING PAID WHILE THE AVERAGE AMERICAN IS BEING SCREWED. Make sure IF you are live in Arizona, you contact a valid attorney because a new law was just passed that can help you….because the banks stupidly tried this on an Arizona Senator!

    Posted on March 8th, 2011 at 5:13 pm

  10. Oscar Said,

    My mother received a letter from Chase explaining her that she must now do the payments to service loan company. All the paperwork was completed and she was approved for the Making Home Affordable program. Chase filed for foreclosure then filed a motion to allow my mother to have time for the MHA program which was granted by the judge.
    My mother passed the probation period with MHA and has succesfully been making her monthly payments.
    Now, she received noticed that Chase forclosed her home and the title of the house is under their name now.
    Chase continues to perform illegal foreclosures!!!!!
    The legal department for the service loan company has no answers neither the HOPE program.

    Posted on March 24th, 2011 at 5:05 am

  11. Doug Said,

    I have been fighting Chase and thought this mess was over and solved, They had me make 3 payments and then the loan modification was supposed to be made permanent, Well I made the 3 payments ahead of due dates by at least a week, Chase had told me in a letter that once those three payments were made it was a done deal. Well I had a note on My door from a home inspector from Chase and it said I need to contact Chase. I called the phone number for Chase and all I get is a recorded message that they cannot take My phone call. :-( .
    Chase needs to go belly up. ASAP.

    Posted on April 9th, 2011 at 5:39 pm

  12. tee Said,

    I have been going through the same thing. I have been practically begging them to help me since I became sick in 2008. in 2010 I lost my job and struggled to make payments. They acted like they wanted to help me, but every time i filled out the modification paperwork they would lose it. I decided to go through a HUD agency and they then left a note outside of my door that looked scammy( my term). I called the number and they informed me that they needed some more paperwork and for me to answer some more questions so they could send it to the underwriting department. i advised that I would call my adviser at the HUD agency and they were like we were just trying to help you and only needed you to answer some questions. I am really stressed out due to having to deal with chase to the point that my hands shake when I have to talk to them. I told them I would call my HUD counselor and have the person call them and they then told me to wait a week. If they have not reviewed my paper work as the agent told me, then we are they embarrassing me by coming by my house to leave notes on the door so all my neighbors can see. I feel like I am about to have a nervous breakdown. Someone needs to do something about this company !

    Posted on August 15th, 2011 at 10:06 pm

  13. wayne Said,

    I HAVE BEEN GOING THRU THE SAME SORT OF THING SINCE LOSING MY JOB IN FEB OF 2011. WAS TOLD HAD TO BE 2 MONTHS PAST DUE FOR THEM TO CONSIDER FOREBEARANCE. I HAVE SUBMITTED ALL THE FORMS FOR A TOTAL OF 3 TIMES TURNED DOWN TWICE FOR NOT SUBMITTING REQUESTED DOCUMENTS IN TIMELY MANNER. SENT IN WHAT THEY ASKED FOR EACH TIME. THE THIRD TIME THOUGHT IT WAS ALL GOOD STARTED THAT ONE IN AUG CLAIMED THE HAD EVERYTHING THEN WOULD ASK FOR SOMETHING ELSE LIKE PROOF OF UNEMPLOYMENT SENT IN AWARDS LETTER AND DETAILED PAYMENTS. GOT CALL ON OCT 8 FROM REP AND RETURNED CALL MONDAY NO ANSWER TILL WED. BUT BEFORE THAT ON MONDAY I HAD TALKED TO MY LOAN SPECIALIST AND HE CALLED STATING UNDERWRITING WANTED PROOF OF UNEMPLOYMENT/I SAID U HAVE IT AND HE AGREED ONCE LOOKING THRU MY FILE. FED UP WITH IT CALLED THE 1800 HOPE HOTLINE TWO HOUR CALL LATER AFTER BEING ON 3 WAY CALL WITH CHASE THEY ADMIT THAT THEY HAVE EVERYTHING TO PROCESS IT. THEN GET CALL ON WED MORNING BEEN DENIED I HAVENT PROVED I AM ON UNEMPLOYMENT. SO I CALL TO TRY AND WORK OUT A REPAYMENT PLAN OR TRY TOO. ASKED FOR SOURCES OF INCOME AND ALL MONTHLY EXPENSES AND THEN LO AND BEHOLD I AM PREAPPROVED FOR THE UNEMPLOYMENT FOREBEARANCE AGAIN. NEED TO MAKE LUMP SUM AND THEN 3 MONTHLY PAYMENTS AND THEY WILL LOOK INTO IT AGAIN. MEANWHILE I AM BEING TOLD THAT THEY ARE HOLDING MONEY IN SUSPENSION THAT I MADE ON THE 9TH FOR A PAYMENT. THEN AROUND 4 SOMEONE CALLS ME AND INFORMS ME THAT CHASE HAS PUT ON HOLD ALL FOREBEARANCES CONSIDERATIONS UNTIL FURTHER NOTICE FROM TEXAS WTH. ANY IDEAS ON WHAT MY NEXT STEP IS . MY HOUSE WAS REFINANCED THRU CHASE TO SHORTEN LOAN WHEN I WAS MAKING GOOD MONEY. NOW MY CREDIT IS RUINED AND NO ONE WILL LOOK AT FINANCING ME CHASE IS THE WORST COMPANY I HAVE EVER DEALT WITH IN MY LIFE. I OWE A LOT LESS ON MY HOUSE THAN ITS WORTH SO I FEEL LIKE THEY ARE JUST TRYING TO CHEAT ME OUT OF MY HOME,

    Posted on October 12th, 2011 at 6:57 pm

  14. admin Said,

    It is extremely frustrating for homeowners trying to get a Chase loan modification-especially if you are not really familiar with how to complete your application correctly and really know exactly what the bank is looking to see on your financial worksheet. The real SECRET to getting a quick response is to complete the initial loan mod application package perfectly-meaning that you show just the right amount of monthly income, monthly expenses and assets so that you prove in black and white that you are the PERFECT candidate! This is tricky-the best way to verify what you need to show on your chase loan modification application is to run your budget figures through the loan modification calculator-this powerful tool will compute and display the exact requirements for your monthly income and show either PASS or FAIL for all 7 approval triggers. You can eliminate a lot of the wasted time, delays and frustration when you are well prepared and informed-after all you need to know what to show the bank or you are simply guessing and hoping that you will qualify. It seems that if your home is on the line, it makes sense to learn and prepare all you can!

    Posted on October 13th, 2011 at 11:39 am

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