Borrowers continue to find it difficult, if not impossible, to obtain assistance from their lenders and mortgage servicing companies when trying to rectify problems or modify loans. They not only get the run-around but now they are paying a high price for trusting advice offered by their mortgage servicing company.
Borrowers report they feel betrayed, tricked and trapped, by the same lenders who received billions of dollars in taxpayer bailout funds, after following their false and costly instructions to skip mortgage payments in order to qualify for a mortgage modification.
Unfortunately, it seems that the mortgage servicing companies have not been disclosing the effect that skipping payments will have on a borrower's credit rating -all that could cause them them to lose their home. The companies additionally neglect to share with the homeowner that any delinquency and skipped payments will be reported to the credit bureaus, excessive penalty and late fees will be assessed AND debt collectors will begin calling them on the now defaulted loan.
This reckless and harmful advice sets off a chain of events that if followed can harm a consumer for many years to come and even cost them their home! By skipping payments a credit score can plummet by a couple of hundred points and that drop can destroy any chance they had refinancing or getting a loan modification.
Those who have skipped payments soon find they have destroyed their credit, have debt collectors hounding them, credit cards closed, and interest rates and payments jacked up. They are now trapped, without access to credit, without a loan modification and zero ability to refinance out of the mess. Soon they receive foreclosure notices (by the same people who promised to help) and unless the borrower can come up with their missed payments along with hefty fines, penalties and interest all conveniently tacked on by the bank, they will soon lose their home! That's the plan...
Here's a recent consumer email that spells out her troubles with Chase Bank. At this time she wishes to remain anonymous but if you want to get in touch with her, please email me and/or leave comments on this blog.
Dear Denise:
I've been trying to work directly with the lender to modify my equity line for quite some time (over 3 years). Instead, Chase deliberately set me up, by instructing me to default on my payments or else they wouldn't consider modifying the line. Once I followed their instructions, they froze the equity line and destroyed my credit all in one shot. The collection data, Chase put on my credit report, caused the credit cards I had at $0 balance for emergencies, to be shut down just like that.
This started because I was faced with a serious health crisis that involved various surgeries, considerable downtime and ongoing therapy. I turned to Chase and asked for a temporary loan modification that could reduce the rate of my 2nd mortgage (a Chase Equity Credit Line). After all, I had seen many ads claiming they were there to help their customers if they ran into difficulties. They not only didn't help me, but their advice and instructions cause irreparable harm.Why promise to help their customers if they aren't going to do so?
What is worse is I believe there was no question that Chase knew their instructions would create a harmful series of events that would put me in a position where I couldn't get out from under.
They were fully aware that I had an impeccable payment track record, and told me they couldn't modify my loan because of that. They (with a witness on the phone) instructed me to fall behind by 2-3 payments and then they could modify my loan.
They also know, I maintained the payments they instructed me to hold back, in escrow so they would be immediately available.
I was stunned by Chase's actions. Rather than modifying my loan as promised, I received a letter informing me they were going to initiate "expedited" foreclosure proceedings, (in my opinion, steal my home)!
I read about mortgage fraud, mortgage servicing fraud and homeowners who claim their lenders and servicing companies lied to them. But, I didn't believe this could happen in America.
Upon realizing that Chase's instructions appeared nothing more than a trap, I immediately paid Chase for the 2 month default they created, and covered the current month's payment. By ensuring my account was paid and current in less than 4 days I was able to prevent any possible premeditated actions to foreclose. I managed to intercept and halt Chase's abusive deeds to seemingly defraud me out of my own home of 32 years.
Prior to these sabotaging instructions I had never been in default, on any account, no defaults, ever!! I have an impeccable payment history! So I still do not understand how Chase (as the equity line) was going to foreclose, when the first mortgage was current and paid on time. But I wasn't going to wait to find out. I paid them the monthly payment and of course the fees and added interest they tacked on to my balance caused by their instructions to fall behind "a couple of months".
I felt they held all the cards as I trustingly and innocently, gave them every piece of information about my disadvantaged position, my limited resources, and the vulnerability concerning my health and finances.
And now that I have managed to harness the situation, I would like you to help me expose what clearly seem to be predatory, criminal, and at the least, abusive and deceptive practices, as my research shows, mine is not an isolated incident.
My research makes me feel certain that Chase has perfected their craft through what appears countless victims many of which have lost their homes. All the while,professing angelic actions in their full page ads claiming they are there to help their borrowers. Chase is looking like a wolf dressed in sheep's clothing. I believe everyone must be made aware of this deceptive practice. I don't want them doing this to anyone else. They do not have the right to manipulate, perpetuate or accelerate loss for homeowners that are already frail, beaten down, and just hanging on by the skin of their teeth.
Chase failed to pull the wool over this lambs eye. And now this lamb is turning into a tiger, fueled by what I believe are unjust and unethical practices.
To date, the credit damage Chase's instructions caused me has not been remedied or even addressed. It is quite possible this false reporting on my credit may follow me, and adversely affect major aspects of my life for the next 7 years. I have already alerted all of the appropriate government entities that may have jurisdiction, in order to stop this kind of thievery.
Homeowners need to be made aware of Chase's actions!
A Florida Consumer
Has this happened to you? And if so, what mortgage servicing company/lender?
Please comment here, share your story or email me directly.
Tell Congress enough is enough. We need mortgage servicing industry regulations and oversight. Let the borrowers be heard!
A few more links;
Bankrate.com "Skip Payments?"
Watch this Consumer Warning Network video -and see how this practice of telling borrowers to be 3 months behind -purposely puts them into foreclosure.
Why won't my mortgage company help?
UPDATE April 2010 See: Homeowner to Chase Bank: Mr. Lowman, here I am.
And yet another UPDATE: From the Huffington Post: Chase Sued: Allegedly told homeowner to Stop Payments; Then foreclosed.
Borrowers report they feel betrayed, tricked and trapped, by the same lenders who received billions of dollars in taxpayer bailout funds, after following their false and costly instructions to skip mortgage payments in order to qualify for a mortgage modification.
Unfortunately, it seems that the mortgage servicing companies have not been disclosing the effect that skipping payments will have on a borrower's credit rating -all that could cause them them to lose their home. The companies additionally neglect to share with the homeowner that any delinquency and skipped payments will be reported to the credit bureaus, excessive penalty and late fees will be assessed AND debt collectors will begin calling them on the now defaulted loan.
This reckless and harmful advice sets off a chain of events that if followed can harm a consumer for many years to come and even cost them their home! By skipping payments a credit score can plummet by a couple of hundred points and that drop can destroy any chance they had refinancing or getting a loan modification.
Those who have skipped payments soon find they have destroyed their credit, have debt collectors hounding them, credit cards closed, and interest rates and payments jacked up. They are now trapped, without access to credit, without a loan modification and zero ability to refinance out of the mess. Soon they receive foreclosure notices (by the same people who promised to help) and unless the borrower can come up with their missed payments along with hefty fines, penalties and interest all conveniently tacked on by the bank, they will soon lose their home! That's the plan...
Here's a recent consumer email that spells out her troubles with Chase Bank. At this time she wishes to remain anonymous but if you want to get in touch with her, please email me and/or leave comments on this blog.
Dear Denise:
I've been trying to work directly with the lender to modify my equity line for quite some time (over 3 years). Instead, Chase deliberately set me up, by instructing me to default on my payments or else they wouldn't consider modifying the line. Once I followed their instructions, they froze the equity line and destroyed my credit all in one shot. The collection data, Chase put on my credit report, caused the credit cards I had at $0 balance for emergencies, to be shut down just like that.
This started because I was faced with a serious health crisis that involved various surgeries, considerable downtime and ongoing therapy. I turned to Chase and asked for a temporary loan modification that could reduce the rate of my 2nd mortgage (a Chase Equity Credit Line). After all, I had seen many ads claiming they were there to help their customers if they ran into difficulties. They not only didn't help me, but their advice and instructions cause irreparable harm.Why promise to help their customers if they aren't going to do so?
What is worse is I believe there was no question that Chase knew their instructions would create a harmful series of events that would put me in a position where I couldn't get out from under.
They were fully aware that I had an impeccable payment track record, and told me they couldn't modify my loan because of that. They (with a witness on the phone) instructed me to fall behind by 2-3 payments and then they could modify my loan.
They also know, I maintained the payments they instructed me to hold back, in escrow so they would be immediately available.
I was stunned by Chase's actions. Rather than modifying my loan as promised, I received a letter informing me they were going to initiate "expedited" foreclosure proceedings, (in my opinion, steal my home)!
I read about mortgage fraud, mortgage servicing fraud and homeowners who claim their lenders and servicing companies lied to them. But, I didn't believe this could happen in America.
Upon realizing that Chase's instructions appeared nothing more than a trap, I immediately paid Chase for the 2 month default they created, and covered the current month's payment. By ensuring my account was paid and current in less than 4 days I was able to prevent any possible premeditated actions to foreclose. I managed to intercept and halt Chase's abusive deeds to seemingly defraud me out of my own home of 32 years.
Prior to these sabotaging instructions I had never been in default, on any account, no defaults, ever!! I have an impeccable payment history! So I still do not understand how Chase (as the equity line) was going to foreclose, when the first mortgage was current and paid on time. But I wasn't going to wait to find out. I paid them the monthly payment and of course the fees and added interest they tacked on to my balance caused by their instructions to fall behind "a couple of months".
I felt they held all the cards as I trustingly and innocently, gave them every piece of information about my disadvantaged position, my limited resources, and the vulnerability concerning my health and finances.
And now that I have managed to harness the situation, I would like you to help me expose what clearly seem to be predatory, criminal, and at the least, abusive and deceptive practices, as my research shows, mine is not an isolated incident.
My research makes me feel certain that Chase has perfected their craft through what appears countless victims many of which have lost their homes. All the while,professing angelic actions in their full page ads claiming they are there to help their borrowers. Chase is looking like a wolf dressed in sheep's clothing. I believe everyone must be made aware of this deceptive practice. I don't want them doing this to anyone else. They do not have the right to manipulate, perpetuate or accelerate loss for homeowners that are already frail, beaten down, and just hanging on by the skin of their teeth.
Chase failed to pull the wool over this lambs eye. And now this lamb is turning into a tiger, fueled by what I believe are unjust and unethical practices.
To date, the credit damage Chase's instructions caused me has not been remedied or even addressed. It is quite possible this false reporting on my credit may follow me, and adversely affect major aspects of my life for the next 7 years. I have already alerted all of the appropriate government entities that may have jurisdiction, in order to stop this kind of thievery.
Homeowners need to be made aware of Chase's actions!
A Florida Consumer
Has this happened to you? And if so, what mortgage servicing company/lender?
Please comment here, share your story or email me directly.
Tell Congress enough is enough. We need mortgage servicing industry regulations and oversight. Let the borrowers be heard!
A few more links;
Bankrate.com "Skip Payments?"
Watch this Consumer Warning Network video -and see how this practice of telling borrowers to be 3 months behind -purposely puts them into foreclosure.
Why won't my mortgage company help?
UPDATE April 2010 See: Homeowner to Chase Bank: Mr. Lowman, here I am.
And yet another UPDATE: From the Huffington Post: Chase Sued: Allegedly told homeowner to Stop Payments; Then foreclosed.
Excerpt: "The fact that a servicer is telling a homeowner that they're taking care of the matter and, while they're negotiating, the house moves into foreclosure is a completely common scenario in today's foreclosure world," said Ira Rheingold, director of the National Association of Consumer Advocates.
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Unfortunately, her mistake was thinking that
the servicer had any interest or obligation to
modify her second loan.
If she did this with her first loan, under
OBama's program, she might have been able to get
a loan modification that was substantial if her
loan was with Fannie Mae or Freddie Mac.
Soon, it looks like FHA loans will also be
covered under the plan. As a result, she should
not give up hope.
If there are lawyers or other borrowers that have any useful information that can help people going through similar problems with their mortgage companies as referred to here, I hope you will please post links and other information here so we can help each other. I have sent this link to my Senators and my attorney too. lets work to get this message out together and stop them.
We had problems even getting phone numbers for the escrow department... or when we did get thru to someone they hung up on us.. we went into Chase bank locations... only to be told NO CAN HELP... so We wrote to the FTC filed complaints.. and to the Office of the Comptroller at the US Dept of Treasury.. the Dept of Treasury stirred someone at Chase bank because we got a nice letter and an invite to work together to solve the problem... After all who holds the bailout monies??? the Treasury!!! here is where you can start your complaint process http://www.occ.treas.gov/customer.htm
Our neighbor was told not to make any payments while her loan was being looked at.. well she didnt get what she needed and she now has to come up with 12,000 in 30 days... so pay as much as you can
Dear MNA:
Please have your neighbor leave a comment on this blog. I would really like to speak with her. Did you know there is a Florida Statute that strictly prohibits the lender to advise the borrower to default.
I've been going through the samething with Countrywide/BOA - I've been told that I'm in review, workout and negotiations... then when I follow up I'm told something different.
Thank you for this blog post. I'm going through something similar with Citifinancial. I am trying to work with them to modify my first mortgage. My husband and I have both gotten a 10% pay cut, my mortgage is now more than the 30% of my income, which is what I've read is enough to modify the mortgage. Their initial response was to let the loan lapse for two months and then try. I chose not to do that. Then they said they could try to modify it without the lapse. Needless to say I've fallen a month behind due to other circumstances. The mortgage company has come back and said that they won't modify my mortgage (and I really don't understand why since all they do is tack on 10 years; they don't lose anything). They say I make enough money to pay it. Is that because I've been paying it? Because I am currently netting less than my monthly bills and juggling. I'm ready to walk away from the house I've lived in for 15 years.
Update to last entry:
I just wanted to update you on my mortgage situation. Because I called today and asked about the payment I currently owed and happened to get a different associate than the one I normally deal with at Citifinancial, I got extremely lucky.
Because this girl, Laura, had to go into my file to answer my question, she noticed the recent modification application, didn't think it looked right that they refused us and asked me to bring in pay stubs and a list of my bills (all stuff, by the way, that I had given to the branch manager, who had worked with the corporate office on the file in the first place). Not only did she get my mortgage modification approved (in 20 minutes--I waited 4 days the first time), she got it $200 lower than what the office manager told me he could possibly get. So, now my mortgage payment is $600 lower than it was and they reduced my exorbitant 9.75% interest rate down to 7.5%.
I am so unbelievably lucky to have crossed paths with this girl. She is a godsend. When I thanked her today, she told me she doesn't take no for an answer, not when it is negatively affecting people who don't deserve it. My husband and I have always done our best to stay current, especially with our mortgage payment, but we also were both recently hit with 10% paycuts and had unexpected expenses to deal with, which threw everything out of whack. There should be more people like her working in this industry.
We aren't completely out of the hole yet, but at least today, someone threw us a rope, so we could start the climb.
Please feel free to post this on your blog. I think it's important for others in our situation to know that there are good people out there who will try to help them and they should keep trying, even if the bank initially says no. And if that doesn't work, the next step, as you mentioned to me, is contacting state legislators.
Thank you so much for giving me an outlet for my frustrations
we here in Las Vegas are starting a law suit and we hope to get it classificated as a class. If anyone is interested please e-mail me
mecjs383@aol.com
I ran into some financial trouble a while back and, well, needless to say it put me in a tight spot. I tried to have a modification done but with all the negative press I was concerned about who to choose. I found a company who seemed reputable and was charged a $2300 fee up front. After about 3 months with no results I became impatient. When I would call to check status they would have a different answer every time for why my modification wasn't done. After 4 months my lender was foreclosing and I was on the brink of losing my home. In a panic to save the home that me and my family live in I searched everywhere for an option. I tried to do a modification with the bank by myself but they were blowing me off and making me jump through hoops just to get a call back. An attorney friend of mine, who did not specialize in real estate law, said he had heard good things about a do it yourself kit .Tired, frustrated, and at wits end, I visited the site and purchased the package he recommended. I did this about 3 weeks ago and since then I followed the steps and it has worked amazingly well. I have spoken with my bank several times and we have come to a modification agreement which is being finalized this week. After all is said and done, I will have eliminated my past due balances and the bank gave me a 5.25% 30 yr fixed (as opposed to my arm which was at 12.25%) and they credited me $31,000 off my principal. I am no expert but the kit boasted a certain document that, as far as I’m concerned, was the reason for my success. once aware of the fsla document the bank contacted me within 24 hours looking to come to "an arrangement". my attorney friend explained that the fsla (full spectrum legal analysis) was a tool that has been used for years by attorneys to accomplish just that, a successful modification. Apparently there were legal infractions on my loan with the bank and that’s why they were so willing to help. Now... just for the record... yesterday, I contacted the modification company that I had hired and asked for a status (just to see what they would say). they informed me that the bank was not willing to do a modification on my loan and stated several reasons. Knowing that they were lying, I demanded to speak with the manager. After yelling at him for over an hour and explaining that I had done in less than a month what he had been supposedly trying to do for over 4 months, I threatened to call the atty generals office and I received a refund in full. Later that day, I contacted the atty general’s office and filed a complaint about that company only to find that they were already under investigation. moral of the story is... this specific kit worked wonders for me and my family. my home appears to be saved and my children will continue to have a comfortable roof safely over their heads. At the end of the day that is all I cared about.
Mary, NY
(NOTE: we removed the name of company listed -as we have not confirmed it's legitimacy)
If anybody knows ONE person who received a loan mod that they are satisfied with, please, send me an email.
I have been suing my lenders since 2006. New Century. I have no other credentials other than saving my home from these predators and dishonest creeps.
It is my opinion that credit scoreing will HAVE to change as a direct result of the bad acts of the bank. Worry about your house, not the credit score. When you kick their ass in court you can have your credit restored.
It is my opinon that the Banks, the Fed are bigger than Obama. I went to a forclosure program claiming to be under the Obama program. The Title Company told people to take their family to McDonalds, and discuss giving up their homes. I had to walk out. Ridiculous. Certainly NOT what Obama had in mind. There are CROOKS everywhere.
I do extensive research, I represent myself in court since 2006 and I am hoping to prevail by any legal means necessary.
Why would you want a loan mod? The bank that defrauded you will not treat you fairly. if you must have a loan mod this is all I would want to hear: 1. Principal Reduction; 2. at or below market interest rate; 3. 30 year fixed.
I would NOT sign a forebearance agreement of any kind, without having an attorny review. It has been my experince that these docs would not stand up in court anyway, and are used to trick you into thinking you can't sue the lender for any bad act if they defraud you during the loan mod process.
Check out this link and fight for your home. I am fighting for mine and I intend to WIN!
All those who need help check out this blog he offers draft documents and such. Don't be afraid to stand up for your rights. i am a homeowner who sued my lenders in 2006 and am still fighting. I am NOT in forclosure and still in my home. I have a lis pendens on my property.
Feel Free to email me at lesliepatrice@yahoo.com and put Mortgage Question in the subject line. I delete emails I don't recognize. Good Luck
I have applied to Obama's loan modification plan for my owner-occupied and my primary residence in May due to a financial hardship caused by the recession. I submitted documentation as requested in May and again in July verifying my income and my residence and the hardship. Chase never sent me any documentation showing that more detail documentation is needed or requiring more information for documentation. As of yet Chase has been unwilling to give me a loan modification and is choosing not to proceed with the modification while my payments are up to date because it is more equitable financial beneficial for Chase to foreclose on my house.
The Obama plan encourages a loan modification while your mortgage payments are up to date. Chase is choosing my path for me and is putting me on the path of forbearance and then foreclosure. Chase is claiming this is all part of the process. It is more beneficial for the bank to foreclose on property that has equity in the house then assist them. Chase is not offering any assistance and is choosing to drag their feet. Foreclosure gives them more value for my house.
The following are examples of Chase’s customers who have followed their advice and have their homes in foreclosure.
http://beta.ripoffreport.com/Loan-Modification/Chase-Home-Finance/chase-home-finance-6-months-of-485a9.htm
http://beta.ripoffreport.com/Loans/CHASE-HOME-FINANCE/jp-morgan-chase-home-finance-c-hf3de.htm
http://beta.ripoffreport.com/Mortgage-Companies/Chase-Home-Finance/chase-home-finance-jp-morgan-eky5a.htm
Chase is willing to foreclose on my house tomorrow but has not done a loan modification on my loan when I applied in May. Also, Chris, the manager recently in July said I would not be able to be approved unless I could prove I have 9 months of unemployment. By Chase prolonging me from obtaining a loan modification I no longer have 9 months of unemployment and this rule was never told to me in the beginning. Chase did not play by fair rules and is doing everything possible to prevent me from obtaining a modification. I am questioning this practice of delaying processing my loan modification and then have me go into foreclosure. This is an unfair advantage that the lender is creating this business practice policy 9- month rule. This does not act as a fair lender.
I contacted Fannie Mae to see if I could speed up the loan modification. Fannie Mae told me I had to work through the bank servicing my loan which is Chase. I then asked about the different rules and programs for loan modifications. Fannie Mae told me that the bank knows the rules and the public do not need to know the rules. I asked about the 9- month rule on loan modifications and he referred me to the bank servicing my loan.
I believe that Chase is not planning on giving me a loan modification. And rather foreclose.
Chase took $25 billion in Tarp funds which I gave through my taxes to stabilize the financial institution. Chase then took $178 billion for a stimulus package which I paid for through my taxes. This assistance prevents Chase from going belly up. And now I need assistance during a recession until I find a job. They want to foreclose on my house so they could raise money to pay the Tarp funds back and give bonuses to thousands of employees. I am outraged. I would like to state that it is a real failure of fiscal stewardship for us to pretend that these dollars are being used to help people stay in their homes and the dollars are being used for anything other than what their purpose was. I am severely paying for the banks choice to allow sub-prime rates and never was involved in sub-prime rates.
Oh by the way the same thing is happening to my neghbor. He was told he needed three months late payment on his house to get a loan modification. At the end of three months he was foreclosed on. His credit was destroyed and he also put down a large equity in his house. He lost it all. He barely has enough money to get by.
Both of us agreen
We thought we were doing the right thing by putting a alot of down payment. Now the banks took it all.
I thought there were laws to protect us. Now I don't trust the banks.
Sandy - I am very sorry to hear you are yet another, understandably, outraged homeowner who finds themselves repeating the very words I once said, and now continue to hear from countless consumers on a regular basis -"I thought there were laws to protect me"...
The realization that nobody will step up to stop these abusive practices to many is as upsetting as the ongoing battle with their mortgage servicing company or lender that homeowners (and credit cardholders) face. Your story illustrates just why it is so many Americans are outraged and fed up with what is going on -or not going on, in Washington today. What is even more disturbing is, as you say, the very banks who welcomed a taxpayer hand out -refuse to extend a hand back to those that now need their help. In fact, what's even more unsettling is the financial industry and their lobbyists have made it their number one priority to fight against the implementation of a Consumer Financial Protection Agency that would have the authority and power to protect consumers from the very practices you and others describe being up against.
See: http://www.givemebackmycredit.com/blog/2009/06/advocates-stress-the-importanc.html
http://www.givemebackmycredit.com/blog/2009/08/if-you-want-financial-reform-a-1.html
http://weblogs.sun-sentinel.com/news/opinion/theslant/blog/denise_richardson/
Yo Wasup
I read the blog
Very well presented
In fact I have been looking for this info.
Great effort keep up the good work!
John
Thanks for opening our eyes to this.
Wish I read this first. My wife and I have a mortgage with HSBC. I lost my job after 15 years last august (08). We kept up with the full payments for a year, when it became too much, I reached out to hsbc for help. At first, they didn’t call me back (I wasn’t in default). Finally, they did. They sent me paperwork, I filled it out and sent them my financials. They sent me a forbearance agreement. We had NEVER been late more than one day for this loan. Our credit was stellar. When I saw section g, which said they were going to report me delinquent if not completely current, I expressed my concern to the rep. I told him that we couldn’t allow our credit to be effected by the forbearance agreement, and that I had a 401k account I could get a hardship withdrawal from if necessary. He assured me that since we weren’t in default at the time, it would continue reporting as current as long as I adhered to the arrangement. That was totally a lie. The first 2 months were reported as current, just because of the timing of my payments, but then this month it was reported as delinquent, 30 days, payment agreement. We had no idea until we started getting the letters from credit cards canceling our accounts and dropping credit lines by 5 figures! Don't let any one tell you that a forbearance isn't going to destroy your credit. if they tell you it won't, get it in writing. They'll tell you that the only way to get a modification is to do the forbearance, which is basically telling you to not pay your bills in full and allow your credit to be destroyed.
I had the same problem with Chase they told me to not make any payments while they approved my application to modify my loan they said it would be 90 days for department and then 90 days for another department to approve it and that they would get in contact with me. Now that 180 days have went by still no word from chase so I tried calling chase and after entering my loan number on the automated system they connected me to someone and they told me that they had got a new computer system and they could not pull my information up and told me to call back in a weeks time and when I would call back they would just keep hanging up on me
Mary, may I please have the website and the type of packet that I can try to do myself. I have been fighting with my mortgage company since the end of 2007. I have an adjustable rate which I was tricked into in the first place. My company has said everything in the book about why I'm not eligible, or they are still working on it, or you make too much money you can pay the mortgage, or you do not make enough money to pay it. I am trying to go thru a counseling agency right now, but I haven't heard anything as of yet. I have sent several hardship letters and again no luck. I have lost income since then and still no luck. I need an attorney but the horrible stories i'm hearing about them is still devastating. So I'm begging you to please send me the info I need to get this packet and pray that it works for me as well. I have not missed a payment yet and I've been through 1 special forebearence, and I'm going through another one right now. Now they have paid my taxes that were just due a month before. I did not ask for that. I always pay it at the beginning of the year with my tax refunds. I've only been doing that because of the type of loan I was tricked into. My taxes and insurance was always included in my payments. Now they are trying to make me pay that up front with my mortgage payment which is impossible. They have taken my payments and have not applied them anywhere. Therefore, stating i am deliquent. I don't understand their strategy but i'm willing to fight for my home. I have owned it since 1998 and I'm not about to let it go that easily. I have never never been 30 days late. So again, I am begging you to send me the info that I need to get this packet, and again pray that it will help me in getting a lower fixed rate.
Ever since my plant shut down and I couldn't make many of my bill payments I have been given similar advice by a customer service representative from Wells Fargo: that is to stop paying the mortgage company any monthly payments and to pay instead my credit card companies. This while a forbearance process was going on.
It didn't quite ring true to me, nor anybody else I mentioned it to and so persisted in making my adjusted mortgage payments.
My only question is if I go chapter 7 with the credit cards but NOT the mortgage, how would it affect, if at all, the forbearance and/or modification process?
This just happened to me this morning, I am so mad. I tried refinancing with our lender US Bank through the Save our Homes plan, have great credit, appraisal came in within the range needed but they turned me down stating my debt ratio is too high. I have never been late on a mortgage ever in more than the 20 years I have owned property. So now I must pay the application fee $300, the appraisal fee $350.00 and credit fee. Where does it make sense to tell me my debt is too high when next month I will still keep on making payments to you at a higher interest rate??? I have yet to hear of any one being helped. When I asked if they had any other programs to help me the loan rep said "You could get behind, but it will hurt your credit" What??? that's crazy. I am not worthy to refinance to lower my payment because I have too much debt this house included?? to the same bank. Help.
Like most other homeowners I'm upside down with my home in California. My situation is that my mortgage was with Taylor Bean and Whitaker. I have never missed a payment (still current) but had contacted Taylor Bean and Whitaker early 2009 (Feb.) to explain to them that soon I will NOT be working (going out on state disability) and the other home owner was losing income (retirement) in April 2009. Taylor Bean sent me (homeowner) a modification packet. Packet was returned to Taylor Bean and Whitaker (within one week) at which myself the home owner finds out that Taylor Bean and Whitaker filed Chapter 11. This was a set back because I was reassurred that my modification would be processed. Now I have a servcing company named CENLAR who does nothing but service the loan and is not able to share with me who owns the loan so that I can work with that company to try and do a loan modification. Laslty, after going through the makinghomeaffordable.com website I figured that I was eligible to do a nmodification. How do I find out who holds my loan so that I can attempt to work with the company to try and do a loan modification?
Any help greatly appreciated.
Insist that your servicer advise you who owns your mortgage. Better yet, make them produce a copy of the note for you. If they won't reveal the lender, you can check with an attorney who can check the title to the property if you aren't aware of how to go about that.
Also see why it's important to learn just who owns your note
SEE:
http://www.givemebackmycredit.com/blog/2008/06/are-you-facing-an-unfair-forec.html
I purchased my home in 2007. In May of 2009, I went on maternity leave and was on a reduced income. That same month, my FIXED mortgage went from a $2900 payment to $3700. I knew right away that I could not afford the payment. I called my bank, Chase and was not given an explanation and wrote to my tax assessor to confirm that my taxes were not increased (they were not). I contacted Chase and informed them of my situation and informed them that I could not make the new payment. I discussed the MHA modification and thought I was being placed in the same only to receive a Forbearance agreement for the next 3 months of $2900. I struggled to make the payments but I did. Towards the end of 2009 and with no assistance from Chase, I contaced the HOPE hotline and gave them all of my information and proof that I previously applied for the MHA mod with Chase. The counselor at HOPE resubmitted my application and was told that I never applied. I was told by my counselor around December of 2009, to follow up with Chase continuously which I did (about every week or two). I was told time and time again that my application was being reviewed, and not to make further payments because doing so would hold up the modification. I was told that the modification was being done based on what was currently owed and that payments would alter all the figures and documents. I stopped payments but continued following up and was told by several Chase members that the loan was approved and that I would receive the paperwork soon (stated they were 45 days out). March 2010 I received a hard knock on my door and was given a letter stating Chase was trying to contact me and that I should call them immediately, I did.
I immediately called Chase at 6:26pm and spoke to someone named Trena. Trena was extremely rude and unhelpful. She said that documents were sent to me FedEx, that they've been reaching out and I have not responded. I told her that I never received a FedEx, that I received a 2/26/10 letter which I responded to on 3/11/10. Mind you the 2/26/10 letter was in reference to another forbearance agreement and the request payment dates were for 2009!!!! Trena stated that 2 FedEx packages were sent on 3/1/10 and 3/11/10 when I asked her for tracking numbers she said she didn't find one for 3/1 shipment and gave me the following number for the 3/11 shipment - ---------. I tracked the number and although the info was sent to Fed Ex, the package was never sent. When I told her all of that information she placed me on hold for quite some time and said that she found out that the documents were with the underwriter since the 11th of March. She said the bank realized there was a mistake prior to receiving my fax (this is after she said that no fax was ever received and that they do not have a fax number beginning with 614) and that the underwriter was to "resend" the documents. Trena said all she could do was email the underwriter and there was nothing else she could do. I said that is the way I feel but I have done everything asked.
4/15/10 Received a call from Chase collection department on 4/15 at 9:14am and was told that I owe 25k (8 pymts). Was told that the modification was declined yesterday by underwriter. Loss mitigation dept. direct 877-830-1837. Andre suggested I call Janita directly. I was told that the modification was approved in March and that I would receive documents in April and now being told that it is declined and that I owe 25k.
4/15/10 Call loss mitigation directly and spoke to Noemi at 1:53pm. She said I was denied the modification yesterday, the 14th. I told her that I was told in March that I was approved and she said she saw both the denial and approval. Suggested I speak to anyone in the underwriting department to find out why it was denied. Now on the phone @ 2:04pm with Marion of (underwriting) they are saying it was denied because the Fed Ex package with the modification documents were undeliverable and returned by Fed Ex. It's not true - the package was never sent (I tracked it). She's saying I need to reapply for a new modification. Said that the only thing she could do was modify to $3,787.93 for May – July. I said I couldn’t make that payment and she said it was non-negotiable. She then said I may want to get a junior lien. I expressed my frustration and she said I could try for the Obama FHA modification but there is no trial payments, she said I need to send documents again and they will review in 15 days. I told her I did that and awaited the documents which they never sent. She said there is nothing she could do because the modification expired. She went over my financials and said I MAY qualify for the Obama modification but she won’t know until she gets all the documents. Call in 24 hours and tell them I am on an FHA modification and ask them to expedite. Then call in 15 days to check the status. The tracking number she gave me for the package “sent” to me is ------- (which was never sent) and she said it was returned to them with number ---- . If it is returned it uses the same tracking number and the tracking on the 2nd number doesn’t coincide.
I just got off of the phone with FedEx the first tracking number ------- (which is the document "chase sent to me") according to Fed Ex was created by Andrea ---- in Ohio and was addressed to Chase Home finance - this package never went out - it only had a created label. The second tracking number ---- (which Chase said "was the return of my documents; as undeliverable) was going to Michael & Sylvia from Chase. Again, FedEx clarified that if it was undeliverable after several attempts - it would come up on the tracking page and would be returned to the sender using the same FedEx tracking number. I attached the tracking pages for both the number Chase gave me today.
4/19/10 Last night I received letter from Chase stating my past due amount $25k with a due date of 4/30/10. I also received another letter stating there were programs that might be available so I can stay in my home.
You already know my feelings - isn't it ironic that these 2 letters were sent regular mail and I received them yet "2 FedEx documents they sent me were returned"? Chase isn't trying to assist me with the MHA modification. They've made endless promises and confirmations and turned around and blatantly lied to me. Clearly this is intentional.
What can I do to escalate this. I will write to everyone and anyone that can get this story out there. It is unfair and deceitful.
Sadly -your story is one of many that report that same identical deceptive practices! More lost paperwork, broken promises, false hope -and no relief! It's good that you documented it all!
You need an attorney who is experienced in fighting these illegal practices -knowledgeable in protecting your rights and your home! What state are you in??
btw -have you shared your story over at http://www.shamethebanks.org? If not, cut and paste and tell your story there too.
Please keep us posted through this thread or feel free to email me directly.
Denise
No point in repeating the struggle I had with Bank of America when I requested a loan modification over a year ago---you have all been through it. However, I did not follow their advice and continued to make timely monthly payments ( a huge struggle---never late). I received a copy of my credit report and they are reporting me as 90 days late. I HAVE NEVER BEEN LATE---I sent a copy of my banking transactions to the credit bureaus to dispute their records. I got the first letter back today from Trans Union saying that Bank of America confirmed that I was 90 days late. I called Bank of America and was told that "yes, they received my payments and they were on time, but since I had requested a modification they could not post them". I have been trying to cancel my request for mod and they aren't doing that either. Even if you pay on time they are determined to ruin your credit anyway. I have received notices of frozen credit lines, increased rates, and turned down on job applications after giving permission to run my credit. How do I get my ruined credit and reputation back??
Unfortunately -your story is like many others who continue to have their pleas for help by their mortgage servicer ignored.
See Sara's BofA story here:
http://www.givemebackmycredit.com/blog/2009/12/another.html
And head over to shamethebanks.org and read many there too. You can add your story too. The more consumers share their stories -the more chance we have at stopping the harm they cause.
Put your complaints in WRITING and to the bank and send certified mail. I would also get a copy of your free annual credit reports -you can call toll free 877-322-8228 or go to annualcreditreport.com and order one from each bureau. ANY inaccuracies should be disputed on the form that comes with your credit reports and returned via certified mail.
Not sure what state you live in -but you can file a complaint with your State AG and the FTC too. Also -if you need an attorney -try to find an experienced consumer attorney. One place to do so as is at naca.net.
Keep us posted on any progress you make (or don't make).
My husband and I have had a similar experience.
JP Morgan Chase advised us and than did nothing to help. We are 68 and 67 years old living, due to the economy, the housing market and the stock market we are living on on SS. We can afford our home if they would only lower the rate, but 7.5 rate is forcing us to sell.
The problem is that we have two mortgages one is with Chase the other is a home equity loan. Since our home is worth more than the Chase loan they refuse to help. Why should they .. they get a home of greater value than their loan, the other borrower will suffer if there is foreclosure
So in my senior years I have to leave our home. I thought that Obama was taking the resession into consideration. The only ones Obama's bail outs have helped are the banks. Where is the money?
Why can't they help and lower our loan to 4.5 so that we aren't homeless. We will never get another mortgage at our age. Please if you see this information and are out to gain from our pain don't contact me.
How did I miss these horror stories out there and had mine get messed up 2months ago during the so called trial period? I feel stupid to let them take advantage of me ! I never suspected that such entity would fail me and did not question the "skip"May payment and send it in June.
Now my credit score hit rock bottom, asked to pay back the May with penalties.
Was told to dispute equifax according to the department working with my modification only to have it confirmed and reduce my score even more. I am dismayed and flabbergasted. I am literally sick to my chest couldn't even talk to the people on the phone. This whole process for me was to just reduce $40 bucks, yes $40bucks of the monthly note. I want to pay back the May, and go back to my old plan...is there a way to do so? Help please help.
How is the government allowing for this to happen? Banks are advising people to go delinquent? wouldn't this be encouraging false approval?
I missed it on the Media and did it and suffering now. Received a late notice, now a harassment letters which I thought came in error. I was always on time, just applied to get back on my feet after a 10% reduction and to see if I could reduce my high interest rate.
What is going on here? why are these companies allowed to mislead people to ruin their credit. My credit card's interest is now 26%....I literally have had a chest pain the past few days since I received the foreclosure notice.
I am so sorry to hear you too going through this. Please seek medical help if you continue to experience health issues -especially the chest pains you note. Take care of you first, the rest will follow.
You should try to find an attorney who is up-to-date with abusive mortgage servicing practices. I am not sure what state you live in, you can post it, or email me and maybe someone can offer a referral to an attorney in your area. You can also try to find one at http://www.naca.net
You should brush up on your rights too. It's your home, and you can still protect it from abusive mortgaging servicing practices. There are several blogs here and out on the web that offer useful info on how to protect your rights. See http://www.msfraud.org and search additional blogs on this site.
http://www.givemebackmycredit.com/blog/mortgage-servicing/
Additionally, these stories and the links contained in them may be of help to you too;
http://www.givemebackmycredit.com/blog/2010/07/judge-delays-foreclosure-citing-inappropriate-paperworknote-separated-from-loan.html
http://www.givemebackmycredit.com/blog/2008/06/are-you-facing-an-unfair-forec.html
I am hoping that the new consumer protection agency will help stop this abuse...IF that is, the right person is appointed to lead it. See the petition for Elizabeth Warren here: http://capwiz.com/affil/issues/alert/?alertid=15256046&PROCESS=Take+Action
I am in the process of refinancing my mortgage with Chase through their Mortgage Rate Reduction Program as I got a letter in the mail offering to refinance my loan at a lower percentage rate at no cost to me: no closing costs, no fees, no appraisal. Of course, I thought it was a scam. But after reading about 50 other blogs of people who received the same offer and some having already gotten their new loan, it turns out its for real. HOWEVER, some people mentioned that they were told not to make their last mortgage payment on their old loan, and that the last payment would get included in their new loan. That had also been explained to me.
SO, is this the same sort of deal where the credit will get damaged when the last payment is skipped on the old loan? Interestingly enough, what these other people who were offered this Mortgage Rate Reduction and I share in common is that we all have excellent credit or at least we did at the time we received the letter.
These actions happened to me. I started in the MHA program in August of 09.
I was told to skip a payment. After making payments on the nose for 4 months - nothing happened. I was told I was approved and I would get the paperwork "any day."
In Jan 2010 - I was told I had to resubmit all over again...all the paperwork had expired.
I did all that.
In March - I was told the paperwork forms had changed - so I needed to re-file. I did. I continued to make the payment on the exact date.
I called every 10 days to ensure all was ok.
They called me sometimes 2-3 times a day as well.
On May 20th - they sent a letter to me stating that i was kicked out of the program and their intent was to start forclosure in 32 days.
Oddly enough - I called on May 24th and was told "everything was ok and my loan was approved - and i was going to receive my loan mod papers any day."
I received the letter kicking me out of the program over Memorial Day weekend - and their offices were closed.
I raised hell on the first of June - and then got a lawyer. I was able to re-file under a new program - and was approved. However, it is November and I have not seen any paperwork. I have been told to skip house payments since May 2010.
I call chase to ask where the paperwork is - and all they do is say "we fed ex'd it to you." I call Fed Ex and they have no record of Chase sending anything - or anyone sending anything - to my address.
My lawyer says today "there's nothing we can do." I spent 3k on him to tell me squat.
This practice is called Parallel Foreclosure. The practice of unannounced parallel foreclosure probably would not stand up in a court of law.
Judges have already frowned on the practice.
Unfortunately, the term parallel foreclosure is not widely used and I believe that is hurting the almost one million homeowners who have been victimized by it.
I wish I had known all of these stories before I started dealing with B of A. 16 months ago I applied for a modification, they told me not to make a payment for 3 months to show hardship, so I didnt. When the three months was up I called and asked for an update and they told me that my case had changed to a different department, and I would have to send in all the docs again, and that they were no longer accepting payments. I sent in all docs, and called again to check the status, they informed me i needed to send in everything again, and allowed me to make one payment, and also told me that once the modification process was complete that they would take the negative off of my credit report. After 16 months of this back and forth, I am now $15000 behind, and feel lost. My credit is completely ruined and I have nowhere to turn. I am looking into a short sale, but at this point I dont know if I can even rent a place with what has happened!!! If anyone has any suggestions please let me know.
Heather -HAMP’s promise had borrowers flocking to their mortgage servicing companies requesting an application. Most, just as you, had no idea what you were about to face: run-arounds, massive headaches and, in the end, broken promises, crushed hopes and destroyed credit -and then waking up the road,in worse shape than they were you set out to qualify.
Not just BofA -but many mortgage companies were telling borrowers to skip payments in order to qualify, paperwork was lost, and borrowers were told, “It takes a while, don't worry.” All the while, little did they know their home was on the fast track to foreclosure with destroyed credit.
You need an experienced consumer attorney -one who understands the current mortgage servicing industry, fraudulent foreclosures --and all else that is transpiring today -including the various lawsuits and class actions addressing various damages brought about by mortgage servicing actions (or in actions).
Let me know what state you live in -either by posting here or email and I may be able to suggest one. Also -if you haven't done so yet, check in with your state Attorney General's office and file a complaint about your situation, -depending on what state you live in-- there are an array of lawsuits & investigations based on complaints they've received.
I had an issue with M&T Bank, and was refused the proper help for 6 weeks. They were pointing the finger at another instutution (this case had to do with my escrow increasing by $187 within the first 6 mos of my loan) and the institution pointing back (the tax office who turned out to be correct). I called at least 6 different institutions about 5 times until I wrote my letter to the Federal Reserve Bank of New York. It took me some time to find the right institution who oversaw M&T bank but once I wrote my letter (please document names, times and brief highlights of the conversation)it took 1 week to rectify and all fees were dropped. When I asked the peson from M&T who called so nicely to tell me that it had all been resolved, I asked her what finally made them change their mind, and she said it was my letter. Hold them accountable. Everyone answers to someone.
I also have a similar problem with Chase. I too have been trying to modify my line of credit to no evail. My HUGE problem with Chase concerns a student loan.
I was completing my teaching degree and needed more money for school. I also stressed about how I would pay my bills when I had to leave my job to complete student teaching. It was recomended that I ask for additional funds for both tuition and my mortgage while I was off work. I got a private student loan from Chase. I was not aware that the laws are different from government loans. I thought all student loans were the same.
During my internship, my husband lost his job. I found a job right out of my internship but was laid off at the end of the school year. My loan papers have "Hardship deferments as well as forberance applications" attached. I called the same day I was laid off to ask for assistance. I was about 1 week from my first payent being due. They told me that I could not even apply for assistance until I made 6 months worth of payments. I stressed that at $300 a month and 2 of us out of work, this was impossible. I was then told that under my loan guidlines, I did not even qualify for deferment as this is a private loan. They were rude and refused to help me.
I offered month after month to send in something but could not cut $300. They said if I did not send in the whole amount, it would be returned to me and marked unpaid. I begged for help! I continually got the same person on the phone and she kept telling me that it was my fault and I should not have borrowed money if I could not pay it back and I should not be a home owner if I could not afford it and that it is time to sell my house to pay my student loans! I was appauled!
I expressed to her my current employment problems. She said if I could squeeze out a payment every 3 months, I would at least save my loan from going into default! I made 2 payment within 4 months, thinking, I have to make another in another 2 months to stay out of default. No sooner do I make that second payment, my loan goes into default. When I called and repeated what I was told, I was told that that lady was wrong and I am basically now screwed unless I could come up with the whole $20,000 plus interest!
I could not do that. I even got letters offering a settlement of 1/2 if I could pay it all up front. If I had $10,000 laying around, I would not have gone into default in the first place or even borrowed the money. They told me to take out another loan to pay off this one!
Finally, My husband went back to work this Spring and I have been working steady. The collecton agency has offered to split my payment into 2 so it wuld be easier for me. I offered this to Chase many times! The best part is that I have been paying the requested amount for almost 4 months now but it will not reflect on my credit until the whole balance is paid! That will be in about 10 more years!
Because of this, I cannot get aloan or grant to pay for certification that our State Board of Ed has required by 2014! I need a roof on my house and cannot get a loan! My car that is 10 yers old is beginning to have problems after spending a whole school year 40 miles from home. I cannot get a car loan either!
I feel scammed and frauded! DOn't get me started on that lone of credit!
Diane, Reading your letter, I have been going thru the same with Citi for 3 years and have been thru 2 different servicing agents and have denied all times supposedly by the underwriters after being told several times that all was being finalized for approval to no avail. I was hoping that you could please supply me with the contact person that was able to accomplish what no one else there has. I am at a loss and no where to turn, I have already lost 4350.00 to a mortgage scam modification company that did the same. If you could help it would be greatly appreciated.
Thank you
Greg
Greg ---I would suggest you try to reach out to the Consumer Financial Protection Bureau at
http://www.consumerfinance.gov --and contact your state Attorneys General office.
You can find complaint forms and phone number on the sites for both.
If you are in need of an experienced consumer attorney in your area, you can search for one at http://www.naca.net
Keep us posted.
Denise
Our loan is owned by Fannie Mae and our mortgage company is Green Tree. I cannot stand Green Tree. When you call to talk to them they talk down to you like you are trash. My husband developed Carpal Tunnel syndrome in both elbow due to the nature of his job. He knew it was getting bad when he was unable to hold our 10 month old daughter without fear of dropping her. When his doctor did the testing back in January he knew he'd 'eventually' have to have surgery. But this last month his condition got so bad that he could feel nothing in his hands for more than 5 seconds and his doctor yanked him out of work. Now in a battle with workman's comp, not to mention the attitude he is getting from his boss, as if we are all superman and don't get hurt..we called Green Tree and asked for a deferment or forbearance. This last paycheck is all we have to live off from until we receive some relief from his work. The lady on the phone heard the case and then said they don't offer any programs for our situation. They said only if he LOST his job would we qualify. We are going to fall behind on payments and it will end up being impossible to catch up by the time we start seeing any money. We have 7 children! We have owned this house and paid faithfully for 5 years. The lady on the phone was very rude and accused my husband that he already knew this was going to happen and that we should have planned. We knew he had the condition but didn't know it was going to get to this point now and that his doctor would pull him out of work NOW. We thought we had time. We explained this and all she said was 'well, have a garage sale'. Is this right? Legal? Is there anything we can do?
Angela, I don't know what state you live. Does your husband have a Worker's comp attorney? If not, he should. Have you tried to contact legal aid in your area?
One option to try and find an attorney: visit the National Association of Consumer Advocates at http://www.naca.net and click on find an attorney at the top of the page...insert what state you live in and practice area (bankruptcy, mortgage, foreclosure, loans) where applicable, and it should return a list of consumer attorneys, with contact info and you can reach out to for a consultation or potential referral to an attorney in your area. You can also try to reach out for advice or guidance at your state's AG office for any links to any consumer protection offices in your state.
Let us know...
I got a Modification and yes my payment is lower but i will be paying on my house for 40 years now and i owe 50K more then i did originally!