This post is about one specific client but I have at least 10 more Chase horror stories that are equally as bad. Anyway, I consider myself very competent and efficient when completing a mortgage bailout for one of my clients.  So much so that when I know I’m right about something I will fight it to the bitter end which often leads to extreme frustration.

I’ve been working with this particular client since July of 2009.  She hired me because she was on a trial payment under Obama’s Making Home Affordable Modification Program, HAMP for short, and she had made six trial payments when initially she was told she only had to make three.  I told her that making six trial payments was normal but then I looked at her paperwork and noticed that Chase was overcharging her by $170 per month.

Her hardship was that her husband had passed away and she was on a fixed income and couldn’t afford her payment.  When you’re on a fixed income, it’s really simple to calculate you’re HAMP payment because all you have to do is multiply that income by 31%.  For some reason when Chase did this simple math, they somehow came up with a number that was $170 higher than it should be…go figure.

Well, my client didn’t know this until I informed her.  We eventually got Chase to adjust her payment and get her a permanent HAMP modification agreement by November.  This agreement stated that she would begin making her new payments in January of this year.  At this time we considered this a big victory because I only had to show Chase how to do there job once.

Now, fast forward to February after my client has made two of her new payments.  She receives another package from Chase containing another HAMP permanent modification agreement with slightly different numbers and a first payment due date of April 1st. 

We immediately call Chase and ask what’s going on?  Several departments and 45 minutes later, we’re told that she needs to follow the most recent agreement that she received.  So, my client has the new agreement notarized and she sent back to chase per their instructions.

Then, in mid march she received the signed, executed copy of the HAMP permanent modification agreement that she signed in November along with a “Notice to Accelerate” because she is behind by one payment, March’s.  This was the payment that the new agreement, along with the Chase representative, said she didn’t have to make.

So since mid-March, I’ve been following up with Chase trying to get to the bottom of what’s going on and this is where my hatred for Chase bank begins.  Apparently, in February, Chase changed their guidelines for third party authorizations, the document that companies like mine must submit to these mortgage servicers to speak on our clients behalf. 

All authorizations must go through their legal department so they can determine the validity of the third party for fraud protection reasons.  Personally, I think this is great that Chase is trying to protect the personal information they collect on their clients.  However, with their new policy in place, I have faxed over 16 third party authorizations on this file since March 15th.

This is where my problems begin.  Chase has like six different departments that work on loan modifications.  My authorization can be found in all departments accept for the Immenent Default department which happens to be the department that I must speak to in order to solve this problem.

So, every-time I call in on this file, which is two times a week at least, I have to first speak with the Way Forward Department, which I think means the “We don’t do shit but read a computer screen department.”  I always start the call telling them that they can’t help me and I need the Immanent Default Department but they always want me to tell the same, long, drawn out story only to confirm what I already told them. 

But, somehow this department can find my authorization which is absolutely brilliant since they can’t help me.  Nothing better than to be authorized to speak to someone that doesn’t know anything…talk about productive!

Anyway, after they realize they can’t help me, they transfer me to the Immanent Default department.  Lucky for me(being sarcastic), it takes at least 30 minutes on hold before I get to connect with Immanent Default. 

Once on the phone with the rep in Immanent Default, I’m told that they can’t find the third party authorization on file and they can’t speak with me.  I inform them that I will conference call my client and she will give me verbal authorization for me to speak on her behalf. 

Mind you, I’ve faxed my authorization 16 times already in the last 50 days but, it is what it is.  So after verifying that it’s ok with my client for them to speak with me, I must now explain what the problem is.  After the explanation, this representative tries to come up with their version of what’s going on but unfortunately they don’t have a clue.

So, now I have to break everything down to them, using the numbers that they already have, and show them how their math doesn’t work and I know what I’m talking about.  This usually takes about 20 minutes and results in them telling me I’m right and that this needs to be fixed.

This is where it gets really exciting!  They put me on hold to try and come up with an answer which, in and of itself, is fine.  However, the wonderful technology that Chase has implemented on their phone systems only allows you to be on hold for a certain period of time before it transfers you to an available representative.

Seems like a rational form of customer service accept it transfers you back to the Way Forward Department in which you start the whole process over again or a recording comes on and says “I’m sorry, your call cannot be completed.  Please try again.”  Either way you end up starting all over again.

I went through this process four time today!  I was on the phone with Chase from 10am until 1pm trying to fix this problem.  half of that time was spent on hold and the other half was spent showing Chase how to do there job and where they screwed up.  The sad part is that I can’t send them a bill on top of the fact that the problem still hasn’t been corrected.

This means that I get to spend more of my time, that I’m already limited on, trying to fix a problem that should never have happened, and trying to do so with the incompetent employees at JP Morgan Chase.  If I didn’t sincerely care about my client’s results, I would have gladly refunded the small amount of money she paid me and given up already.

Fortunately, for our clients, that’s not how we do business.  Like I said before, when I know I’m right, I don’t stop until the bank see’s it my way.  Thanks for listening to me vent and I hope you take this post as a lesson which is don’t give up and know your stuff!

I’ll keep you updated on this client and I can’t wait until we’re done because her testimonial is going to be awesome!  If you want to learn more about this process or find out if you qualify for a mortgage bailout, make sure you sign up for my FREE Mortgage Bailout Video Series.

As a mortgage bailout professional, I get to witness and hear about a lot of situations that you as homeowners aren’t privy to. One of the most common and unfortunate situations is when homeowners are denied loan modification for very vague reasons. This happens more often to homeowners that are current with their mortgage payments when they intitially request a loan modification than those that are behind in payments.

And, it just so happens that one mortgage company in particular is responsible for a large portion of this injustice…JP Morgan Chase.

To learn more about this injustice, visit this article written by Paul Kiel, an author for ProPublica.com which reports journalism in the public interest. You can visit this article by clicking on the title, Chase Denied Loan Mods.

The thing that really bother me about this is when you contact JP Morgan Chase, the on-hold recording that you hear warns homeowners of hiring a third party to assist them with their loan modification because Chase is “there to help” for FREE.  They are implying that you will get the same assistance from Chase that a third party would offer you for a fee.  This is a horribly inaccurate statement for two very good reasons;

1. Banks will always do what’s in their best interest and if you review the above article amongst the other resources available on this blog there is more than enough information available to back that up.
2. If you have no idea what mortgage bailout programs are available to you, you will have no idea if the bank is giving you what you deserve.

To make my point perfectly clear, I want to give you two personal examples of what I’m talking about.

The first story is that of Terry Tolar of Interlochen, Michigan. Terry hired us to assist him with his modification because he was a previous mortgage client of ours and he was having trouble getting assistance from Chase.

Terry’s story is very sad as when he initially requested his loan modification with Chase his wife was very ill. Unfortunately, during the process his wife passed away. When this happened we had to update all of his information, including the death of his wife, with Chase.

As we continued to follow up with Chase throughout this long and grueling process, Terry received a denial letter from Chase stating that his loan modification was denied. The reason for denial was that his hardship was not of a “permanent nature!”

So, apparently, Chase is not only one of the largest banks in America, but somehow they’ve developed the technology to resurrect the deceased. Fortunately, Terry had us, you know-one of those third party companies that you should beware of hiring, in his corner to fight his battle for him.

It wasn’t easy, and it took a lot of extra work, but you’ll be happy to hear that Terry Tolar was finally approved for Home Affordable Modification Program. His payment was reduced significantly and I can honestly say that this would never have happened if Terry was on his own.

The next story is that of Glenna Drohn from Howell, Michigan. Glenna’s story is similar to Terry’s as she too lost her spouse. However, that was her main reason for hardship as it happened prior to her requesting the HAMP program.

Glenna was already on Step One of the Home Affordable Modification Program when she contacted my office. She called because she had already made 5 trial payments on a program that supposedly requires only 3 trial payments, yet they still hadn’t completed her modification.  She thought something was fishy so she found us online and gave us a call.

After reviewing her information, the amount of trial payments she had made was the least of my concern. After doing the initial math, I discovered that Chase was actually charging her $200+ more per month than she qualified for. She would have never found this out if she didn’t call me, one of those third party companies that you should be wary of hiring because Chase is there to help for FREE…lol.

Anyway, it took some time, some persistence, and a keen understanding of the guidelines, but we were able to get Glenna the reduced payment she actually qualified for and her  permanent modification in place.

It makes me sick the way they tried to take advantage of Glenna because she is a senior citizen on a fixed income and $200 a month is the difference between  buying real food or eating potatoes and Ramen Noodles.

To make sure this doesn’t happen to you, get your copy of the FREE report “7 Simple Steps to Your Mortgage Bailout” and if you feel like you need more assistance than the report offers visit www.MichiganMortgageModification.com and set an appointment to speak with one of The Mortgage Bailout Guys.

Yes, you can get a loan modification on a second home or a rental property. However, each lender and investor has their own guidelines and the “Obama Mortgage Plan” is only for primary residences. When attempting a loan modification on a second home or a rental property it’s hard to determine the outcome.

Watch the video below for more details and if it doesn’t answer your questions just leave a comment and we’ll answer your question right away. Also, if you find this information useful pass it along to a friend or neighbor. Thanks for taking the time to visit our blog and I hope you enjoy the information we’re providing you.

Yes, you can do a loan modification yourself! You might not get the best results available but you can definately do it yourself. I would suggest getting educated on what mortgage bailout programs are available for you and how those programs work. I made the video below to answer this question in more detail.

If you enjoy the video or any other information available on this blog, please forward it to a friend so we can help them to.  Good luck with your mortgage bailout and remember persistance is key!

When it comes to just letting your home go to foreclosure and walking away there is a lot to consider.  A large number of homeowners make this decision after they are denied for a loan modification by their mortgage company.  In some cases it makes perfect sense to walk away because the homeowner has exhausted all the resources they know of to try and stay in their home.

This is a big problem because most homeowners don’t understand the detailed guidelines of the loan modification programs available and often disqualify themselves by error. However, a very large number of my private loan modification clients had tried to get a loan modification on their own with the help of their mortgage company and they were denied. They then hired me and I was able to get a loan modification in place because I have the specialized knowledge to get it done.

This is very important for anyone that was turned down for a loan modification by their mortgage company without seeking help from a good third party. Before you decide to walk away from your home make sure that you talked with a quality third party company about your options. Personally, when I analyze a potential modification client I look for several factors that will allow them to qualify for the programs available and if I don’t feel that they have a good chance at qualifying I give them advice on what to do from there.

One thing to keep in mind is that there are thousands of third party loan modification companies drooling for your business. Not all of these companies are good companies and some will promise you “pie in the sky” results just to get you to send in a check. If something sounds too good to be true, go with your gut. Also, be very aware of any third party that gives you any potential modification results, such as a 2% interest rate or any type of principal reduction, without getting detailed income and mortgage information.

Later in this post, I’m going to give you a list of questions to ask yourself before deciding to just walk away. But first, I want you to check out the following articles on this subject that lend some credibility to what I’m saying.  The first article was written by David Streitfeld for the New York times and you can view it by clicking the article title “No Help in Sight, More Homeowners Walk Away.”

The next article I want you to take a look at is about the property values of three counties in Michigan, Oakland County, Wayne County, and Macomb County. Sorry if you don’t live in Michigan but other states like Florida, California, Nevada, and Arizonia are seeing the same, or even worse devaluation. You can view this by clicking on the title, “See how property values have plummeted.”

The last article that I would like you to check out is about how some lenders are going after borrowers who made the decision to walk away.  Former homeowners may still be on the hook if there’s a difference between what they owed on their mortgage and what the bank could sell it for at foreclosure auction. And these “deficiency judgments” are ticking time bombs that can explode years after borrowers lose their homes. This seems unjust especially after the homeowner already had to sacrifice their home which is what the mortgage  was secured by.  This article was written by Les Christie, staff writer for CNNmoney.com. You can view this by clicking on the title, “Mortgage lenders pursue homeowners even after foreclosure.”

On the lighter side of this topic, I’d like you to watch this video of Stephen Colbert from the Colbert Raport. It’s very funny and unfortunately very true! I hope you enjoy it.

The following  are the questions that you should ask yourself if you’re considering walking away from your home;

1. Can I rent a home similar to mine in my area for less than my mortgage payment including taxes and homeowners insurance?
2. Do I owe 25% or more on my home than it’s currently worth?
3. Has my lender already turned me down for a loan modification?
4. Have I contacted a quality third party loan modification company to verify that I can’t get a loan modification?
5. Have I considered riding out my states foreclosure process and staying in my home for as long as possible without paying a dime?
6. Am I worried about my credit score and if so, why?
7. What is my plan if the lender comes after me for a deficiency judgment?

Loan modifications can do a lot to help our housing market recover but it’s really not enough.  You see, loan modifications, at least the ones that actually improve someone’s situation, are typically best for those that are delinquent and can’t afford their existing mortgage payment.  Unfortunately, there aren’t a lot of good programs out there for people who are current and can afford their mortgage payment.

So, from the eyes of someone that can afford their mortgage payment, it appears that only those that financed more mortgage than they can afford are the ones that are getting the best outcome.  Sure, hearing that your neighbor was about to go into foreclosure and then he got a 2% interest rate, with no payment due for 2 months, makes you think this system is messed up.  On the surface this is true, but you really have to peel back the layers of the onion to understand why it’s important for everyone that these homeowners get a mortgage bailout.

I agree that each homeowner is responsible for the mortgage that they signed up for.  But, when you have so many mortgage products on the market, that allow almost anyone to purchase a home, along with the fact that the American Dream of homeownership is forced down the general publics throat, it’s hard not to want to own a home.  With that being said, let me digress on why these loan modifications and the Obama mortgage plan help all homeowners.

Let’s say that we have two neighbors with similar homes and we’ll call them A and B.  Let’s say that neighbor A purchased a home on a fixed rate of 5% and their payment was $1,000 per month.  Now, let’s say that neighbor B purchased their home on a two year adjustable rate at 5.5% and their payment was $1,150 per month.  Neighbor B did the adjustable because it provided a more affordable payment and had every intention of refinancing before the rate adjusted.  Now, when Neighbor B went to refi, they were denied because  they owed more on their home than it was worth.  Neighbor A also owes more on their home than it’s worth but they have a fixed rate.

So now Neighbor B’s rate adjusted to 8.5% and their new payment is $1,550 per month.  They are paying $550 more per month than Neighbor A for the same home.  After a few months of struggling, Neighbor B just can’t make the payment anymore and is facing a foreclosure sale.  The bank sells the home at auction for $30,000 less than what both Neighbor A and Neighbor B owed on their mortgages.

Now, this sale of Neighbor B’s home at auction has further driven down the value of everybody’s home in the area because it will be used as a comparable property by an appraiser.  Neighbor B now has to move out and rent a home from Neighbor C for $1,150 per month because that’s what they can afford.  If the bank would have worked with Neighbor B to reduce the mortgage payment back to $1,150, this whole devaluation of property wouldn’t have happened.

It makes no sense to send a homeowner packing only to move down the street and pay rent for what they were originally paying on their mortgage.  This is why loan modifications and the Obama mortgage plan help all homeowners.

I’ve been doing loan modifications for quite some time now.  During this time I’ve had several clients tell me that their mortgage company is going to help them complete the loan modification.  Every time I hear this, I cringe because I know what they are about to go through and I know what the end result is going to be.  Unfortunately, 90% of the time, they’re going to call me back for advice or help with their mortgage bailout.

This is sad because the mortgage companies, and the general media, are telling these homeowners that they don’t need outside help.  They tell you to just call your mortgage company and they will help you qualify for a loan modification.  They don’t tell you that you need to be prepared for their help.  This is terrible because most of the questions that they are going to ask the homeowner over the phone to pre-qualify them for a loan modification, are not questions that should be answered on a whim.

Loan modifications are not a one size fits all solution.  In fact, in order to qualify for a loan modification, the homeowner must meet the guidelines.  The guidelines are very specific and have a lot of variables that can disqualify the loan modification.  These variables include your income, your living expenses, your debt ratio, your homes value, and several others.

Your mortgage company has a specific set of questions that they will ask and then they enter the answers into a computer program.  The computer program will then decide if you qualify for a mortgage bailout.  So, answering these questions properly is very important.  Again, your mortgage company representative is just entering data, and if you don’t qualify, they have no reason why.  They often will guess and give you incorrect information.  This process is ridiculous!

It makes no difference what your personal situation is, if you are going to attempt a loan modification on your own, it’s up to you to get prepared.  That means you may have to do some dreaded research on the programs that are available.  The information is out there but it’s not easy to find nor understand.  You can “Google” search for mortgage bailout guidelines but if you don’t understand them they are basically worthless.

I would suggest that any homeowner who is thinking about attempting a mortgage bailout on their own grabs a copy of the FREE Report “7 Simple Steps to Your Mortgage Bailout” offered on the top right side of this blog.  I think there is a lot of value with this FREE information and it could help you save thousands of dollars per year on your mortgage bailout.