Do I have any recourse with my mortgage holder if they took two years to process my modification?

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Washinton Mutual owned loan, then was bought out by Chase. I lost second job when paying to Washington Mutual, began paying lower payments 6 months after loosing second job. Chase just got back to me with a denial two weeks ago. Nearly 2 years to the day I first filed for modification.

  1. Reply
    January 21, 2011 at 4:48 am

    no you don’t. Nothing is written that says your entitled to a loan modification

  2. Reply
    January 21, 2011 at 5:28 am

    Iffy is correct. There is nothing that says they have to give you a loan modification or that they have to do it in a specific amount of time.

    Additionally, they denied your modification. If they had sent you the denial letter 2 years ago – you’d still be in the same boat you are in now. You have not suffered any damages because of it taking 2 years to get the denial letter.

  3. Reply
    January 21, 2011 at 6:07 am

    No, unless you had some sort of contract in writing. Banks are not required to modify loans nor does every servicer participate. Even the government warns on their website that the banks are overwhelmed and be prepared for a lengthy process.

    BTW- you mention paying lower amts. Did you have a trial period and they issued a denial when you didn’t meet the new pmts? That is another problem with these modif.-that even done correctly you apply and they review your file, the bank gives a 6 month trial period and, at the end of 6 months, the lender has to underwrite the file a 2nd time to make sure nothing changed and that you still qualify. Right there, with a complete file you have probably a 7 month span of processing.

  4. Reply
    January 21, 2011 at 7:00 am

    NO. You aren’t ENTITLED as a matter of course to a loan modification.

    You went to them, you borrowed money, lots of money and promised to repay it to them. Apparently they reached some accommodation since you’ve been paying LESS than the agreed amount for some time. They don’t HAVE to modify your loan–you promised to repay and they can foreclose if you don’t pay as agreed. There are programs by the government encouraging lenders to modify loans now, so you may wish to start the process all over again. Call, and call again, and talk to lots of people at Chase to find out your options. But don’t DEMAND, even though it’s been a frustrating experience–remember you are the petitioner, asking them to do something they don’t have to do. And if it looks like you can’t swing things without your second job, they would be stupid to modify the loan only to have you fail, after they’ve put extra time and effort and costs into it, and only delaying their repayment.

  5. Reply
    January 21, 2011 at 7:52 am

    There are all right, the banks are not required to do a loan modification, so you can’t do anything. What you can do is reapply again for a loan modification. The 2yr wait could have been a blessing, especially if you haven’t been paying since then, but if you been making your payments and waiting for a loan modification, I do understand your frustrations. Just reapply again for a loan modification. If you would like more information or my free ebook. Send me a email at

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