Unsolicited loan modification – what is Chase up to?

David reports:

we received a Loan Modification Agreement from chase dated June 10, 2010.  the property is 4 rental units, and payments are current.  we DID NOT request a Loan Modification.  this came FedEx with a cover letter urging us to hurry up and return the signed agreement by 6/24/2010.

we have been ‘pre-qualified’ for a ‘special program’.  monthly payment remains essentially the same, mortgage balance to be reduced by $110,481 (from $330,481) to $220,000, term to be reduced by 119 months, and the current adjustable rate (3.03%) to become fixed @ 5%.

there may be tax consequences! on the reduced principal, and this could have an undesirable on our credit rating.

what is chase up to?  we smell a rat!

This seems way too generous for Chase to offer to someone that isn’t behind on their mortgage payments and has NOT requested a loan modification.  Are they soliciting this to get them to sign up for a trial modification with lower payments, then deny them, demand a baloon payment, and foreclose?  Could Chase really be THAT predatory?

20 Comments

  • By heather, June 18, 2010 @ 3:58 pm

    Got the same sort of letter, same date. $250,000. mortgage reduction, fixed 5% rate for 15 years. Says we are already approved and it must be sent back by 6/28/10. It also was unsolicited. We are not behind in our payments, either. It was signed by Steve Stein…Chase Home Owner Assistant Department. Sent via FedEx with a prepaid FredEx return envelope enclosed. Is it even really from Chase?

  • By david hoge, June 21, 2010 @ 11:45 am

    This is a follow up to my comments above. Phoned Chase today, the 800 number on my loan statement, to ask if this is a legitimate offer that actually came from Chase. The Chase computer system is ‘down’, call back later!

    FWIW, the loan we have (unmodified) is at about 60% – 65% Loan to Value. We are mystified as to why Chase would agree to reduce the principal, and can’t come up with a rational reason for why Chase would make this offer.

    Could this be a bogus offer from someone phishing for identification? (if so they already know a lot about us) Or, is this an attempt by Chase to put us in a position where they could call the loan?

  • By heather, June 21, 2010 @ 4:37 pm

    I went into Chase this weekend and they said it is a legitimate offer. Also talked to our mortgage broker said that some lenders are doing this to keep people in good standing and good credit, but upside down from walking away. I have been extremely suspicious, but it appears to be a good offer. We’ll see.

  • By Raquel, August 12, 2010 @ 3:34 pm

    I have received the same unsolicited loan modification mentioned above. I was wondering if any of you went through with this modification and if you got it approved. The reason I ask is because after following the instructions on the package and sending all the documentation on time, my modification was denied for bogus reasons (i.e. not sending documents on time). In addition, everytime I called to get answers, I would get the message that their systems are down which seems to be common. If anyone has any feedback about this please let me know. Thank you.

  • By KAMALA MINTO, August 17, 2010 @ 1:15 am

    I dont know who steve stein is but I just forwarded his letters to CNN and President Obama telling them the games he and Chase are playing. I requested a modification but they keep telling me to come to the Homeowner Assistance meetings with the same documents. The latest letter tells me to go to Orlando although I live in Broward. They are just PLAYING A DANGEROUS GAME!!!

  • By nickl, January 12, 2011 @ 8:03 am

    Yes, it WAS the real deal and if you didn’t sign & return, you lost out. I’m in San Diego and my neighbor got a lower loan, lower payments, lower rate without all the Loan Mod hassle or even asking for them. Chase didn’t offer to me, and I tried to get this offer for myself – couldn’t. My guess is Chase had to come up with some numbers of successfully completed Loan Mods before Sept 2010 and their internal system was too slow in providing them.

  • By Isabel, January 25, 2011 @ 5:44 pm

    Hi Heather,

    I what ever happen? Did the loan Modification work out for you? is this legit?

    By heather, June 21, 2010 @ 4:37 pm

    I went into Chase this weekend and they said it is a legitimate offer. Also talked to our mortgage broker said that some lenders are doing this to keep people in good standing and good credit, but upside down from walking away. I have been extremely suspicious, but it appears to be a good offer. We’ll see.

  • By rockjcb, February 10, 2011 @ 7:49 am

    In short Chase = RATS!!

  • By AnonymousChaseCustomer, April 4, 2011 @ 4:00 am

    This is what I think is really happening. I base this upon my own personal experience as well as being a former Realtor and pre-law student. Ultimately, NO ONE is going to get a real loan modification because it is all a scam. We happen to have Chase Home Mortgage also, and I have read story upon story from one homeowner after another about the way these banks are abusing people. The stories are the same and I can identify with everything that others have said. The banksters’ ultimate goal is to take your house. THEY WILL FORECLOSE. Make NO mistake about that. You WILL lose your home. Bottom line.
    Why?
    Because when the banks got all that bailout money, that gave the Feds the right to stick their nose in the banksters business. Banksters are common thieves (the ONLY difference is they dress nicer and don’t sneak into your home in the middle of the night).
    The banks want the Feds out of their business so they say they are going to pay back the bailout money to get the Feds off their backs. HOWEVER, rather than actually paying back the billions in bailout money (our taxpayer dollars mind you) they are forcing everyone who is upside down and behind into foreclosure. Banks almost always buy the/your houses back at the foreclosure sales. Then they write the difference off (as losses) on their taxes. Thus, they are technically “paying back” the bailout money but not out a single dime and, they get to keep the houses too and resell them and make even more money over the life of the new loan. They get to have their cake, keep it, and eat it too. This is who the American homeowner is dealing with.
    HOW are they getting away with doing this and why are they telling people to PURPOSELY NOT make XX payments prior to filing for a modification? The answer lies in the mortgage paperwork itself. Almost all mortgages have a clause in them called a “Power of Sale” provision. Read it! It plainly states that in the event of your default (ie., you get behind), the lender has the right to foreclose and NO OBLIGATION to enter into ANY modification program or accept anything other than what was originally agreed to. The banks are literally setting people up like dominoes. Just look around. Right now 4 out of 10 homes are either vacant or in foreclosure-that’s nearly HALF! The Banks have ZERO intention of letting you keep your home. It is a complete scam with the full blessing of our elected officials who work so hard for us (cough). Once you are behind, there appears to be no accountability as to what happens to any/all payments you make to them from what I am seeing and hearing. There are major discrepancies in escrows. My educated guess is that the banks are pocketing whatever you do send them so you might as well burn the money.
    Bottom line? Don’t get behind. In this economy though, I know for most people that is or has been impossible. If you have been or you are in arrears/trial loan modification, etc., REALIZE NOW that they ARE GOING to take your house-it is only a matter of time, a question of WHEN, NOT “IF”. If you are behind, stay in your home as long as you can, drag the process out as long as possible, realize you will most likely have to file bankruptcy because they will also try and come after you for the difference in what you owed and what the home actually sold for. Watch your respective County recorder’s office for the foreclosure sale date. They are REQUIRED to record that PRIOR to the sale. On the day BEFORE the sale, file your bankruptcy. It isn’t the end of the world. Rather, it is a new beginning. While you remain in your home DO NOT SEND THE BANK ONE CENT! Save ALL of your money and sell off anything you don’t need so that you can find another home when they stick a note on your door telling you that your home has been sold from underneath you. This is the inevitable. It is awful and scary and atrocious-but this is the reality of what is going on. I have yet to hear of a single loan modification that worked out in the homeowners favor. Google the banks and foreclosures and complaints and you will see the same scenarios being played out over and again and all have the SAME end result-FORECLOSURE! It is doubtful that the government or the AG’s will help. ALL the complaining is falling on deaf ears. Banks are powerful because they have money (our stolen money) and money is power. Class actions are good but they are only as good as the judge who handles the case and Judges can be and are bought and sold all day long for the right price. Bottom line, SAVE YOUR MONEY! Give these criminal enterprises (banks) a taste of their own medicine. Play along – but send them no money and drag out the process of foreclosure as long as possible. Two can play at their game. But realize that ultimately you WILL lose your home so you best prepare yourself whilst you have the time. Don’t pay these bastards ANYTHING no matter what empty promises they offer. They are lying and yes, still stealing and they will stop at nothing to steal your home right out from under you.

  • By A banker/attorney, April 18, 2011 @ 12:18 pm

    Don’t automatically buy into the paranoid rantings of an anonymous poster, or you may let a good deal pass you by. Conversely, don’t just assume that Chase is looking out for your best interests. As with everything, read and understand what you are getting into before agreeing to anything. If you don’t understand it, then seek professional help from an accountant or lawyer. I just reviewed an offer under the Chase Rate Reduction Program. It was a no-brainer. The client had everything to gain and nothing to lose. No closing costs and more than a 1% reduction in rate.

  • By admin, April 18, 2011 @ 12:49 pm

    Definitely good advice to read and understand everything before signing. But keep in mind that Chase stands accused here in the 1000 or so stories we’ve posted by many people of varying walks of life of being inconsiderate, deceptive, incompetent, and in general doing things starkly contrary to the benefit of its customers, it is hard to believe when they act reasonably and competently.

  • By Joey Baggadoughnuts, April 27, 2011 @ 5:30 pm

    I am sick of Chase I had an account where I let the balance go to $200.00 then a company tried to take a Auto Check deduction out (after telling them not to as I was sending a check) Chase pays the $2,100.00 check them I had to pay it back the next month I get hit for fees then thy allow the deduction again, they refused the deduction but hit me for $30.00 the company tried 5 more time in the month. After 60 days Chase wants $568.00 List these jerks on http://www.AssHoleReport.com

  • By Breeze Gilbreath, May 13, 2011 @ 12:32 pm

    My husband died december 19th and in January I filled out the application for a loan modification with chase mortgage who had the loan. My grand daughter moved in with me and will graduate about january 2012 with her RN.At that point we would be ok. I explained all this in my application letter and to the rep who called and said he would be handling my case. They have repeatedly lost paper work that I have resent which was ok but I get request from Ohio, Colorado, two cities in Florida, florence ,SC and
    Texas. It seems like no one knows what the other is doing.If you finally get someone on the phone you can not understanf what they are saying because you are talking to someone in the Philippines. It has been hell and now they are telling me I did not respond fast enough so it has been denied. I have 5 reciets from the post office, recored 23 phone calls talked to 4 diffrent people so I do not uinderstand.Left many messages that was not returned and yet they say I did not respond and keep in touch. I really believe this is a rip off. Why are they allowed to do this?

  • By angie, May 18, 2011 @ 9:10 pm

    They sure know how to ignore you! I was trying to refinance my current home, to my surprise they denied it? I asked the representative for specific reasons, and he said that it as because my debt ratio was too high…hmm? really? I was trying to use the HARP/HAMP which debt is not a big deal. My only debt is my home..really? no credit cards, student loans…etc..nothing! which its puzzling… Strangely that’s the only thing he could say, how incompetent? How are they suppose to help with forclosures or the house crisis if they dont want to help the customer!!!? if i am able to refinance i could be saving $300.00 a month, which would benefit me and the economy! anyway, after been denied over the phone i told him that the program is suppose to finance up to 100%. Again, his incompetence was too high..he could not give me feedback for the reason I couldn’t qualify. I felt ignored and devalued as a customer!! especially when my credit is in great condition!

  • By angie, May 18, 2011 @ 11:50 pm

    oh i forgot to mention. I also received a letter days prior to my loan denial. the letter specify for me to call the number on the letter…their was no number to call. the representative had a zero as a number and his email. how ridiculous…Well, i am happy to say that my loan has been approved by USAA! After my phone chat with chase, they gave a random number since my loan was a VA loan and he could not help me? r u serious? so, i called the number. no one picked up, and no one returned my call. I am glad I wont be dealing with chase. I am now refinancing my loan through USAA under a similar program like HARP but its specifically for VA loans (IRRRL) well, i am happy that I wont be dealing with chase anymore!!!(

  • By LINDA, July 17, 2011 @ 1:22 pm

    We received a loan modification “offer” Dec. 16, 2009, from CHASE via Fed-Ex…and we had only six days to ACCEPT or REFUSE. We “ACCEPTED” No costs! No points! No fees! No escrow!….they didn’t even add any additonal years to our mortgage!!! It WAS and STILL is the most FANTASTIC thing that has ever happened in our “financial” life!! We don’t know how or why we were chosen…..but it is the Christmas Gift we will never forget. Thank you Chase!!!

  • By Greg, August 13, 2011 @ 2:30 pm

    I’m going to post this on multiple forums out of curiousity. We also received the Chase Rate Reduction offer and took advantage of it. Today we received a notification of assignment, sale or transfer of our mortgage. Seems that before we even made the 1st payment, Chase sold the loan off to Fannie Mae. I’m not even sure the ink was dry on the paperwork and they had moved it already. Now I’m surmising this happened to a lot, if not nearly all of the people given the opportunity to refinance. A theory that was floated is that a large amount of these loans had some sort of issue or defect in the paperwork and Fannie Mae would not buy them until it was fixed. Now that the paperwork is clean, the loans were immediately sold. That meshes pretty well with the timeline of our offer, paperwork signing and transfer of the loan. I’m curious to hear other people’s point of view.

  • By Dilettante, November 29, 2011 @ 5:36 pm

    Okay, guys. Listen up. I’m about to share my experience with you. The comment suggesting that the Bank’s motivation was some defect in the paperwork seems most probable to me. My guess is that the loan mod offers involve the loans that the Bank inherited from WAMU. I was about to close on one of these fantastic mods — 1+ percent reduction, reduction in loan term, etc. When I received the paperwork from the Bank, the loan security agreement for my coop apartment was full of restrictions that my original loan agreement never had. For example, there was a clause preventing me from making alterations to my apartment without first obtaining the Bank’s approval. When I asked to have that clause eliminated, I was told that no changes to the documents could be negotiated. I asked to add one simple protection for myself — a sentence that would have read “Consent will not be unreasonably withheld.” The Bank refused. So I pulled out of the loan. I REALLY distrust Chase. I have too many memories of being charged $80/month in checking account fees. One of the great ironies in my life is that I switched to WAMU to escape Chase and, lo and behold, WAMU has become Chase.

  • By Gilda, December 9, 2011 @ 11:45 am

    Alert: Chase posted itself on our credit reports before they acquired WAMU. For 2 years we have been trying to find out what was their role in our mortgage and what are they doing on our credit report, no answer. All those phone numbers do not work and all their advisers do not have a high school diploma. Now they have made the problem worse. Within the past 60 days Chase has posted a collection on a mortgage they do not have and have sent cease and desist letter on a credit card in good standing. Everybody check your credit reports and keep a paper trail. You will need it.

  • By Nick Law, March 19, 2012 @ 9:40 am

    Hi, i just thought i’d drop a line to share my experience.
    I live in a modest house with a modest mortgage.
    i am upside on value to what i owe.
    my purchase was in 2003.
    i always made all payment and used a small portion of line of credit for improvements to home, not for TV’s or cars.
    Chase mailed me the package. i went along with it, after reading others had success.
    They paid closing costs, and i assure you there were no costs rolled into loan, expect for the 1 month interest that I didn’t want to pay out of pocket. I closed no problem. my rate went from 6.125 to 4.75. My total balance increased by the 1 month interest amount. My payment dropped about $300.00 / month.
    I received a letter a few days ago from Fannie Mae, saying that Chase sold my loan back to them. My original loan was Fannie Mae and I thought it was only serviced by WaMu and then Chase. Supposedly i still pay Chase, not fannie mae.
    Chase said the refi offer was to keep clients in good standing with them, but then sold the loan. I believe they lied about that, but the terms of my loan are not going to change.
    I had 22 years left on a 30 year. now i have a 30 year but I make the same payment, so according to online calculators, i will pay it off in about 17 or 18 years by applying the $300 difference to principle each month. I plan to do this, knowing that if I hit a rough patch, i can always send $300 less for a month or two, although I’m happy to see my loan amount decrease faster with paying principal down.
    that’s my experience. If I had to do it over again, i would.
    ps. all the banks are sheisters. they are in it for money and that’s what they do.

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