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kb917

Success story - Chase & B of A

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I wanted to share with some of you, who may be feeling discouraged, that I have been trying to get a modification through Chase (1st) and B of A (2nd) for the past two years.

Chase: We were 'approved' for a terrible modification once; the payment was lower by a laughable amount and they wanted us to sign a forbearance agreement. I feel bad for the folks who don't know mortgage terminology because that's what the lenders count on. Good thing I knew what a forbearance was! I said 'no thank you' and we tried to scrape together enough to continue making our payments. We couldn't, and ended up getting a lawyer. This was the best $1,500 we spent. I know I could have done it again on my own, but I will tell you, from experience, lenders are much more cooperative with attorneys than borrowers. Anyway, we had to stop paying, blah, blah. We were denied our first mod because they calculated our income incorrectly. Then, we received a call from Chase corporate, apologizing for their error, and instructing us to NOT ACCEPT the modification and to re-apply. So, we did. We were denied on this attempt as well. Would you like to guess the reason? BECAUSE WE DIDN'T MAKE OUR TRIAL PAYMENTS ON THE FIRST MODIFICATION. Seriously? They TOLD US not to! Our lawyer had never seen Chase screw up so poorly. Just when we were starting to get quite discouraged, almost two years into the process, somehow...we were approved. After threatening Chase with litigation, they finally came through.

And the best news came today: B of A has decided to forgive our second - COMPLETELY. That is over $100K in debt savings. I am thrilled with our results. We are still in the trial portion of the Chase mod, but things are looking up.

Just wanted to share and say thank you to everyone's contributions to this forum. Opinions and information are INVALUABLE.

DON'T GIVE UP!!! THAT'S WHAT THEY WANT YOU TO DO!xdancex

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Sounds like your attorney get them to place you in the DOJ mod program. This is the only one that reduces principle or forgives.

Good for you! There is still time for many others to get into that program.

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Sounds like your attorney get them to place you in the DOJ mod program. This is the only one that reduces principle or forgives.

Good for you! There is still time for many others to get into that program.

After three years, we finally got a decent modification offer from BoA BUT....the trial period is three months and after that they will forgive over 100K in principle (they say). BUT...my concern is tax consequences. It is my understanding that mortgage forgiveness act only goes till the end of 2012, so if at the beginning of 2013 they forgive some principle, won't we get stuck with a tax bill? OR do the tax ramifications occur based upon the year the modification was initiated in trial? Hopefully you all can help us with this...it's been a horrible rollercoaster ride and we don't want to get screwed in the end. Thanks:):)

To explain the first mod pyt is due Nov 1 then Dec 1 then Jan 2013! After which time they say they'll forgive some of the principle...

Edited by rikkivs

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After three years, we finally got a decent modification offer from BoA BUT....the trial period is three months and after that they will forgive over 100K in principle (they say). BUT...my concern is tax consequences. It is my understanding that mortgage forgiveness act only goes till the end of 2012, so if at the beginning of 2013 they forgive some principle, won't we get stuck with a tax bill? OR do the tax ramifications occur based upon the year the modification was initiated in trial? Hopefully you all can help us with this...it's been a horrible rollercoaster ride and we don't want to get screwed in the end. Thanks:):)

To explain the first mod pyt is due Nov 1 then Dec 1 then Jan 2013! After which time they say they'll forgive some of the principle...

I would try to make the payments sooner, then find out if you can get it finalized by 12/31. You will get the 1099-C for whatever year you are incurring the forgiveness, so it may roll into 2013. Even so, the forgiveness may still roll over...who knows if Obama will extend it if he is still in office. It was supposed to only go through 2011, then we got lucky and got another extension for 2012. My mod on my first is complete 11/1, so hopefully Chase gets their poop together and gets it finalized prior to year end. I don't want that kind of bill next year. I am sure they will be reducing principal, based on the trial payment (it is a HAMP mod, they are required to not extend the life of the loan past 30 years).

Good luck to you!

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