Losing house to Chase Bank after trying to do the ‘loan modification’ dance and an unbelievable escrow glitch?

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We’ve gone through the whole ‘loan modification’ song and dance with these turkeys a few times now and all we get is more grief and pain. We fax in all our personal information (minus our bank account statements) to them and they lost it, or so-and-so is on vacation, or the voicemail is full or they NEVER call back, or after 3 months of playing the game, it has to be re-submitted because it’s expired…etc. In other words it never really goes to anyone that does anything with it. On one occasion we had faxed it in three times in a row and still no one knew where it was. I have renters living in the house that we are about to lose and they are ok with having to move in about 8 months, but we don’t really want to give it up or wreck our credit…again. My husband has had to take a 5% pay cut at work at the same time Chase informed us that they didn’t take enough out for the escrow account and that they need another 84$ per month to make up the difference. HUH? The weird thing there is that the property taxes went down, and the letter they sent says in effect, ‘usually the reason your escrow account amount is behind is that your property taxes have gone up. Please contact your local tax assessor with any questions.’ The zinger is that their glitch put us over the edge financially, our heating ($ 400!!!) and electric bill just drained us all winter along with other unexpected outflow of monies. Our renters are at their max that they can afford and frankly we are lucky to have them in there so getting higher paying renters (plus they took the option to buy and want to in 2 years) is not an option. We owe $ 112,000, the monthly payments have edged their way up to $ 1550, and it’s not worth $ 80,000 in it’s current neighborhood (3 foreclosures in spitting distance in the past year and one currently taking place have brought values to the ground). Any advice, ideas, resources? I know this is a prevalent issue, but I’m sure there is some sort of fraud being engineered and perpetrated on the people with mortgages at Chase Bank and its affiliates, I’ve seen a lot of the complaint websites, even the “F” rating they get at the BBB, but yet I’ve seen no recourse.
We are current on payments, but we won’t be much longer, up in the air as to saving it…is that kind of negative escrow worth it??? We don’t make a dime on renting it out, we actually lose. Since it’s not owner occupied it’s a little tougher to get help on it…but my renters really want to buy it, and since they can’t for two years with their own credit issues, it’s a big ole’ mess.
Oh and it was originally written by Netbank Mortgage and then sold to Chase about 3 months after the purchase went through. We have requested the original loan paperwork but have yet to receive anything.

  1. Reply
    nonya b
    April 29, 2011 at 11:46 pm

    That’s because the banks run the gov’t, so they don’t have to worry about complaints. Sounds like you are not going to get any resolve with them. Hopefully, you can try another bank.

  2. Reply
    April 30, 2011 at 12:12 am

    Unfortunately, I think you’re seeing incompetence and lack of caring more than anything else. I’ve been working in this market for almost 2 years now, even getting certified as a Loss Mitigation Realtor.

    The questions are, do you want to save the property? Are you current with your mortgage? Looks like you have no equity in the house. Feel free to contact me if you want to discuss your options in depth. Also, a number of CDC-type agencies are helping people like you cut through the crap and are actually negotiating with the banks more successfully.

    Without knowing where you are, it’s hard to offer sound advice. Contact me off-list if you want to explore possibilities.

  3. Reply
    April 30, 2011 at 1:07 am

    same thing happened to me…I haven’t paid in 6 months and haven’t received foreclosure papers. I was advised to get an apartment and have done so…no one is living in my house in which I owe 184K and it is very frustrating…My loan was bought out because my mortgage company went bankrupt. I had a loan modification with my previous mortgage company which gave me a fix rate of 5%…so my payments were only 1100…including escrow..so the new ppl sent me something saying my escrow hasn’t been paid since 2006!!! wtf?? not true at all…..so they are trying to charge me 1100 plus 1200 for escrow…I’m like ya’ll got that all wrong and need to fix it…I read horror stories about them “Litton Loan” before they acquired my loan and everytime I talked to someone there it was a different story. So I stopped paying and am going to bankrupt as soon as I get foreclosure papers….it’s everyones story these days so don’t feel bad..I don’t and I love my condo.

  4. Reply
    April 30, 2011 at 1:58 am

    A few things you need to know are that Chase may have wrote the loan paperwork but after the loan closed Chase sold the loan to Freddie or Fannie and got paid a commision for generating the loan. The loan was then sold to Wall Street and then resold again to investors as a CDO.
    So when you try to “modify” your loan you send it to Chase and it goes into the hands of a person working there drawing a salary and they must figure out who the loan has been sold to repeatedly; if those companies are still in business, who in those companies handles the paperwork, and how to get it to them for them to sign-off on adjusting the loan.
    And when your loan is “bundled” with other loans by one company, resold to another company, REbundled again by that company, and resold again as a CDO which are chopped by in different slices it is NOT an easy quick solution for anybody. Your one loan may have been sliced up in over 6 different CDOs and each part of the loan is now having to be “modified” which affects the entire CDO and the investment group or groups that bought each part has to consider how your request affects the return on the entire CDO.
    Also the person a the bank who you are dealing with has NO interest in the outcome of your case. They are getting swamped with requests that they simply are untrained for, unqualified to handle, and will not do anything to risk getting fired.
    So YOUR personal situation and the fact that your income was cut 5% does NOT concern them. YOU bought the house, YOU signed the loan paperwork, YOU rented it out, and now you want them to cover the loss of equity for YOUR bad investment. Good luck.

  5. Reply
    April 30, 2011 at 2:43 am

    You need to be the squeaky wheel. Call and insist you speak to a supervisor. Tell them you’re sending whatever and that you’ll call back in one hour to be sure they got it. Then call. Keep calling until you get results. If you keep bugging the supervisor, he in turn will bug the processor and underwriter. This works quite well where I work, and Chase is probably not much different. Take names every time you talk to anyone, and note the time and date too. “Judy Smith said…” means a lot more than “somebody told me…” Be very very nice when you call, because if you get nasty you’ll get ignored. Be a nice pest.

    We do care about the people we serve here. It’s more a problem of not having the time to do everything we should do because there are so many loans to work every day.

    But just as your paycut isn’t really my problem, my overload of work isn’t your problem. But we all have to deal with what we got.

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