SCREWED OVER by CHASE BANK!
Here is a story that I have to share with everyone out there. This story is a great example of how the government and the banks are just out to take advantage of YOU!
The banks hate to do "Loan Modifications"! The government has put on a dog and pony show, in regards to short sales and modification. The government will tell you, "we just passed legislation that mandates that before the banks take a home in Foreclosure, they must offer counseling and assistance in loan modification". Straight up, that is BS!
How many people do you know that are in real danger of loosing their home? How many are good people, pay their bills and for whatever reason - they have found themselves in a bad way? NOW, How Many People Do You Know That Have Completed A Successful Loan Modification?
Thousands, right? NOT!
You see, the success rate of the modification process is very low. The actual chances of getting a modification is even lower. Most loans that do get a modification do eventually go to Foreclosure.
My theory on this is that the banks modify those that are going to loose their house anyway and eventually the bank gets the house. The same banks and government that thought the housing bubble burst would never happen, are the same people that are trying to tell everyone things are getting better. The sad part is that they believe this. That is why they want to take houses from people. They think that eventually they will be able to sell them for more.
Sadly, most Foreclosure properties sell for about 61% of what they are really worth.
Now to my story! This story was passed on to me just yesterday. It was shared by a close friend, who happens to be in the real estate business as well. This agent was contacted by a home owner to sell their home. Here is their story:
Over 18 months ago, the family mortgage payment of $3100 a month became to much because one of the family members lost their job. Being the proud people that they are, they dipped into savings, cut out non necessary items from their budget, just to make the mortgage payment. They were advised that they should look into a LOAN MODIFICATION. Upon speaking with CHASE Bank, they were advised and given information on how to apply for a loan modification. The application was filled out and sent to chase, along with enough documentation to fill a truck. In part, they provided tax returns, hardship letters, pay stubs, bank statements and a financial work sheet. (EVERYTHING CHASE BANK ASKED FOR)
Still, never missing a payment! Wonderful Chase Bank awarded this family a loan modification. Their payment went to $1700 per month and life went on.
Finally a great story of how with the influence of Barney Frank and our other government officials, Chase bank was forced to work with the little guy and award them a modification.
YES, for 18 months the family made their payments ON TIME! They were the "Poster Child" for how a modification should work!
Until one day they got a notice from Chase. OOOOOOPS! We have bad news for you Mr. & Mrs. Honest Family Hard Working People Who Pay ALL of their bills on time! Chase went on to say,.......... Remember when we approved the loan modification for your loan? Well, we don't know how to quite come out and say this, SO WE WILL JUST DUMP IT RIGHT ON YOU! WE F'd UP! Yes that right, we screwed up and we should not have given you a loan modification. Why you ask, well you should have stopped making payments by now and we should of had the house through Foreclosure 8 months ago. So, what we have decided to do is cancel your modification, because we should have never given it to you, and adjust your credit to show that you did not make the full payments that you were to make ($3100 per month) and we will give you an opportunity to make yourselves whole again at the altar of CHASE BANK. Real simple, just pay all the back unpaid mortgage payments (the difference between what should have been paid and the illegal modification that we gave you) along with penalty and interest and legal fees, and that comes to only $110,000 will you be using your Chase ink? or will that be cash. If you can not pay, your house will go to sheriff sale in August! Thank you for being a loyal customer. If we can assist you in any other way, just give our customer service a call!
Now, the reason that the modification was found (by Chase) to be illegal, you might ask! The people never missed a payment! Chase has a policy to only modify the home owners that have missed payments and are using the modification process as a way to stave off Foreclosure for a few months!
So, now they are short selling their house. The are devistated because they have worked so hard for everything that they have. They love their home!
What resources do they have? Everybody just blows smoke! The government is an expert on the art of blowing perfect little smoke rings up your ass. The mighty chase bank, they are too big to fail and thus can do no evil.
Don't get me wrong! Not everybody deserves a house and not everybody deserves a loan modification. But, some people do!
If these were your clients, what advise would you give them?
This horror story was shared with me last night. It is not the first one that I have heard and I am sure it will not be the last. There was just something about this particular story that "got my goat".
I appreciate the opportunity to vent!
Here is a link that touches on my concerns regarding this "loan modification" process. http://mattweidnerlaw.com/blog/2011/06/chase-employee-were-in-the-foreclosure-business-not-modifications/
Thanks For Reading This,
David is a Real Estate Consultant with The Team Sordelet Realty Group at Prudential Fox & Roach Realtors.
Phone: 302-476-2057 begin_of_the_skype_highlighting 302-476-2057 end_of_the_skype_highlighting. Email: wesell@teamsordelet.com.
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David Sordelet specializes in loan modification assistance and short sales in New Castle Delaware. New Castle Loan Modification Help, New Castle Short Sales, New Castle Short Sale Realtor Short Sale Realtor. New Castle DE Short Sales. New Castle Realtor. Delaware Short Sale, Delaware Loan Modification, Selling Real Estate, First Time Home Buyers, Delaware Real Estate Expert, Short Sale Specialist, Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are David Sordelet's personal views and do not reflect the views of Prudential or Prudential Fox & Roach Realtors.
David Sordelet, Prudential Fox & Roach Realtors, and the Stop Foreclosure Institute are not affiliated in any way, shape, or form with the government. Our services have not been reviewed or endorse by the government or your lender. Most lenders willingly work with agents on short sales. Why? Because most short sales are beneficial to a lender. If you accept our offer to help you on a short sale, your lender may not agree to a short sale or to modify your loan. We do offer a loan modification kit.
However, the likelihood of negotiating a modification is like everything else in life. It takes work and persistence to convince your lender to modify your loan. No matter what you or we do, your lender may not approve a loan modification.
We do not recommend that you stop paying your mortgage, because this will cause damage to your credit and could cause you to lose your home. Because we know avoiding foreclosure is so important to any homeowner, we recommend that you speak with the appropriate legal or tax advisor before making any decision. You have the option to reject a short sale or loan modification from your lender if it does not meet your approval. If you decide not to go thru with the short sale, then you do not have to pay us our fee. We normally make a real estate sales commission for helping you on a short sale.
