Chase Improperly Denies Some Loan Mods because Hardship Not Considered Permanent
Facing foreclosure? Is Chase your mortgage company? Have you applied for a loan modification with them to try to save your home? Then you need to read this. You also need to read this if you or someone you know was denied a loan modification because the hardship was not considered permanent.
In an article for ProPublica dated February 7, 2010 Paul Kiel reported that Chase has improperly denied some applications for loan modifications. The reason they gave for the denials is that the applicant’s hardship was not permanent.
In his article Mr. Kiel reports that ProPublica found several cases denied for this reason. They all occurred in November of 2009.
- One case involved a mortgage broker. In the paper work he submitted to Chase the broker indicated that he felt that the steps taken by the Obama Administration might turn the Housing Market around. If that occurred, his income might increase. Because of that Chase denied his request for a loan modification.
- Another case involved a lady in California. Chase denied her request because they said her income had not decreased. She works as an x-ray technician. Because her salary was not high enough, she delivered pizzas three nights a week to supplement her income. The interest rate on her mortgage was 9.5%. The monthly payment on her mortgage was over 50% of her income. When she couldn’t pay the property taxes early in 2009, she fell 2 months behind on her mortgage payments. She had applied for a loan modification in the spring. Chase cut her monthly payment from $3,350 to $1,778. She was able to make these payments and made six before they denied her request for a modification.
The sad thing is that Chase misinterpreted the guidelines for the Making Home Affordable Program. In December the U S Treasury advised the mortgage companies participating in the program that they could not deny an application because a hardship was not considered permanent.
If Chase denied your application because they felt your hardship was not permanent, take action immediately. The problem is that the guidelines for the Making Home Affordable Program that once a mortgage company denies a modification, there is no provision for an appeal of that decision.
If you tried to get the loan modification on your own, speak to a lawyer or an expert in loan modifications. Explain what happened and get them to represent you.
You may have to file a new application for a loan modification. If you do, follow up with Chase regularly to make sure that they are processing it.
You can also contact a housing counselor at 1-888-995-HOPE (4673). Explain that Chase denied your application because they felt your hardship was not permanent. Add that you understand that this denial was incorrect. Ask them if there are any steps you can take to get Chase to reopen your case.
You may have read this far and said that your mortgage company is not Chase. However, they denied your application for the same reason – your hardship is not permanent. If that has happened, I recommend that you do the same. Get a lawyer or an expert in loan modifications to help you. Also call the housing counselor at 1-888-995-HOPE (4673).
The same is true for any family members and friends you have who may have been denied a loan modification for this reason.
In order to save your home from foreclosure, you need to know as much about the process and what steps you can take. This is not difficult. You can become an expert in a short period of time. There is much information available to you. One source is my EBook. To get more information on it, please click Stop Foreclosure.
Much Success,
Mark Elkins
