horsegal305

Mortgage Company Screwed US, What Do You Think?

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I need some advice please and this is a "not so common situation".  I have already started the dispute process with the credit bureaus but so far they haven't removed any late payments, which has caused us a lot of problems. I didn't know these were on there until we sold our house and went to buy another one. I have all my facts written down and will copy and paste it, let me know what you think? Also, when disputing this should I send a copy of everything that happened to the credit bureaus in full detail or will they not care?

I bought my home in October of 2001 with a total monthly payment on a fixed interest rate of $665.33. Our payment stayed the same until around 2010. It began going up more and more with no explanation as to why. While trying to make our regular monthly payment we realized it was constantly changing.  By 2013 our payment was extremely high. After many conversations with many different Chase customer service employees we finally found out it was due to escrow and the homeowners insurance going from $400 yearly to $3,141.78. We were never informed of the price increase from Cotton states or Chase and had to make several phone calls to Chase before we finally found out why our payments were so high. Living on a budget and having our house payments go higher and higher made things very difficult. This went on from 2010 until January of 2013. We then cancelled our insurance with Cotton States and got homeowners insurance with Shelter Insurance with a premium of $971.00. Chase never canceled the homeowners insuarnce with Cotton States even though we sent a policy cancelation letter, so this had us paying insurance for both Shelter and Cotton states which was a combined amount of $4,112.78 a year which sent our payments even higher. By now our payments were close to or over $1000 a month. I do not have a copy of that and Chase refused to send us one. We recently moved and all my paper work is stored away, the last high payment invoice I could find was the $864.77 from 2012 but it went up even higher by 2013. Every month we would call Chase to resolve this issue which by the time it was resolved the payments were once again late, and month after month Cotton states was put back on our account even after a customer service rep said is was taking off. This was not fully resolved until the end of 2013 which by this time our account was so messed up we had a hard time catching up. Chase reccomended we do a loan modification and sent us all the paper work and during this time we were not supposed to make a payment which now reflects 90 day lates on our credit history. We never did the modification nor should we have had to since this was not any fault of ours. Cotton states finally refunded us for the money they owed us for the year of 2013.  By the Fall of 2014 Chase finally had our account straightened out. Our payments finally went back down to where they were supposed to be and not a single late payment was made until we sold our house in 2016. Since then we have been trying to get a mortgage and these late paymets have made it impossible. I had no idea these were even on my credit report until I went to get a new mortgage. We contacted chase and asked for records of all the problems we had from 2010-2014 and they would not send it to us. We needed a history of the insurance increase and the escrow showing they paid 2 homeowners, which they would not send either. They only sent us payment history from 2015 & 2016 which did not help us when applying for a mortgage since this didn't show all the problems and why we were late throughout 2010-2014.

 

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9 hours ago, horsegal305 said:

Also, when disputing this should I send a copy of everything that happened to the credit bureaus in full detail or will they not care?

The bureaus are only reporting what CHASE is telling them.  They are not going to remove valid late payments simply because a consumer disputes them.

9 hours ago, horsegal305 said:

They only sent us payment history from 2015 & 2016 which did not help us when applying for a mortgage since this didn't show all the problems and why we were late throughout 2010-2014.

Unfortunately the main fact is the payments WERE late.  The time to negotiate dealing with those late payments was when it happened not years after the fact.  The chances of getting CHASE to change them now or delete them are slim to none.  My suggestion would be to get out your copies of everything and give it to your new mortgage broker.  They underwriter MIGHT consider it but I wouldn't get your hopes up.

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I understand the payments wee still late, but the fact of the matter is that the payments were never what they were supposed to be during that time and Chase never fixed it. And now that we need supporting documents to show a new bank they refuse to send them. most of this was done over the phone and not in writing.

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You should have some sort of documentation of the changing payments, combined with Chase fixing it all in 2014, and also, the refund from Cotton State from when you were grossly overcharged.  Those three things combined might be enough to show a new lender what happened.  Chase and others like HSBC are notorious for this....HSBC charged us more than double the actual amount for insurance for years, and when we finally took legal action, the very next month after we filed our claim, there was all of a sudden a "random audit" done on our HSBC account......and they promptly credited thousands of dollars of those fees to the account balance.  All told, more than $7400 was fraudulently charged and then credited back.  Up to that point, HSBC was only involved in the insurance on the account for just over 4 years and they overcharged that much.  They even admitted the fault, but it took legal action to get them to credit it back to the account.  We're still fighting them for this fraud and other fraud as well. 

I would check to see what documentation you have in storage.  Try to put together a timeline of documentation showing these changes.  Obviously, the more you can find in the way of documentation, the more complete the picture will be, but there is no good reason whatsoever that your homeowner's insurance should have gone up from $400 per year to over $3000.....I live in the area affected by Hurricane Katrina, and even lost my house in that storm, and still, our premiums literally doubled down here....but that's an increase of nearly 800%....there's no way in hell that that could have been legitimate....I would look to see what docs you have showing that the premiums jumped up that high, because there's no way in the world that anyone could think that such an increase would be legit. 

Normally, I'd also recommend that you speak with an attorney, and since you are not in foreclosure, that might actually work in your favor.  If you were in any sort of foreclosure situation, forget an attorney, as at least down here, they only want money to delay.  Your fight is not with the bureaus, it is with Chase.  Unfortunately, you might be in a position where the only way you will get your hands on that documentation from Chase is through discovery in a lawsuit.  Maybe an attorney would not be such a bad idea, you could most likely find one that will give a free initial consult, and since you're not fighting foreclosure, maybe it will be enough to get an attorney involved, and Chase might back down.  I would not agree that the payments were legitimately late---Chase can argue that you did not pay them on time, but the truth is that they interfered with your ability to make them on time....first, by raising them up so high, and second, by telling you not to make payments while applying for a mod.  While it is technically true that payments were late, contract law prohibits a lender from interfering in any way with you making payments on time, and Chase did exactly that.  Getting an attorney might put some pressure on them to remove the negative info that THEY caused from your reports.  I did not even get an attorney and the lawsuit alone was enough pressure for HSBC to not only "randomly audit" and credit thousands, but then they sold the loan--for the seocnd time, I might add--because of it. 

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1 hour ago, kraftykrab said:

While it is technically true that payments were late, contract law prohibits a lender from interfering in any way with you making payments on time, and Chase did exactly that. 

There is no "technically" when it comes to legal matters.  The law that refers to lenders not interfering with payments is not contract law or about them advising the consumer that a modification cannot be done until payments are late.  If the payments are not late then a refinance is what has to be done not a modification which under water mortgages do not qualify for.  The bank is not required to consider a modification (and won't) if the payments are being made.  The burden is on the consumer if they want to assume that risk of those payments being late or missing.

"Interfering" refers to holding a payment processing deliberately to that it is late and generates fees or not accepting it at all for no reason.  The consumer not being able to afford the payments is not a defense.

The major issue with your theories is that you do not have a copy of the loan documents and if the mortgage allowed for CHASE to charge those outrageous insurance fees then the recourse was to refinance the loan or get other insurance WAY sooner.  Making payments late is not a defense to that either.  Again, the time to deal with that was when the whole incident happened.  It was settled several years ago and the SOL to even pursue a suit against CHASE over this may be expired.  It could explain why CHASE is ignoring the requests for information.

 

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Clydesmom,

 

You might know a thing or two about medical collections, but you don't know much about how mortgage issues work.  This is not the place for you to thump your chest and pretend you know it all, so please, take it elsewhere.  Not one thing you posted there is correct....not one.

4 hours ago, Clydesmom said:

"Interfering" refers to holding a payment processing deliberately to that it is late and generates fees or not accepting it at all for no reason.  The consumer not being able to afford the payments is not a defense.

"Interfering" means ANY action by the lender that causes the borrower to not make payments.  We are not talking about when the borrower gets laid off, or gets hurt and cannot work, etc etc.  We are talking about the lender doing something that in turn causes the borrower to not be able to make the payments.  In case you did not notice, lenders and banks have been punished to the tune of BILLIONS these last few years, and one of the specific reasons why is because they screwed with the cost of insurance for the borrowers....just like this.  Again, I would know.  The moment I called HSBC out on it, they tucked tail and ran....but not before crediting a ton of money back to the account that they stole from me.

Notice that banks and lenders also have gotten into a lot of hot water for the loan mod shell game, where they INSTRUCT the borrower to stop making payments, and then declare them in default.  That has ALSO been found to be interfering with performance. 

The consumer not being able to afford payments IS a defense--in the circumstance where the loan is a fixed interest loan and the bank CLEARLY took advantage of the borrower like this.  There's no law in the country that permits ANY lender to jack up your insurance costs by 800% and then pretend that it's all your fault, so stop reaching.  You have no experience in this area.  Stop pretending that you do.

3 hours ago, Clydesmom said:

The law that refers to lenders not interfering with payments is not contract law or about them advising the consumer that a modification cannot be done until payments are late.

False.  100% false.  There's a reason why this falls under the heading of "tortious interference of a CONTRACT".  Lenders under contract with borrowers have a duty to that borrower.  Without the contract, that duty does not exist.  There's an implied covenant of good faith and fair dealing in every state that exists between two parties who contract with each other.  Without that contract relationship, it does not apply.  The law in my state says that if one party to the contract does not perform its obligation under that contract, the other party is excused from performance without penalty during the first party's breach.  Not complying with applicable laws violates the terms of these contracts, because they specifically state that the contract is governed by the laws of whatever state. 

3 hours ago, Clydesmom said:

If the payments are not late then a refinance is what has to be done not a modification

Which is possibly why so many banks and lenders have gotten in trouble for that.  TONS of loan mod scamming like this has happened and a lot of court cases were lost by those banks when the courts saw that they caused the borrower to stop paying. 

4 hours ago, Clydesmom said:

which under water mortgages do not qualify for.

Again, false.  TONS of underwater mortgages got modified...there's this thing called "principal forgiveness" that made it possible.  This is what happens when you dont know the material and try to thump your chest anyways.  Also:

http://www.bankrate.com/finance/refinance/refinance-options-when-you-re-underwater-1.aspx

 

Many borrowers with underwater mortgages have qualified for a HAMP mod....and those are approved by the lenders themselves, so apparently banks WILL consider a mod when you're underwater.

 

4 hours ago, Clydesmom said:

The bank is not required to consider a modification (and won't) if the payments are being made.

Maybe you should tell the banking industry this, then....because it would appear that they are not aware of it:

http://www.bankrate.com/finance/mortgages/should-you-skip-your-mortgage-payment-1.aspx

4 hours ago, Clydesmom said:

The burden is on the consumer if they want to assume that risk of those payments being late or missing.

Wrong again....if the lender TELLS the customer to stop making payments and the customer can prove it, then the burden is on the LENDER.  Plenty of court cases back me up on this.  Stop guessing.  Also, go research the doctrine of estoppel and how it applies to this exact situation. 

4 hours ago, Clydesmom said:

The major issue with your theories is that you do not have a copy of the loan documents and if the mortgage allowed for CHASE to charge those outrageous insurance fees then the recourse was to refinance the loan or get other insurance WAY sooner.

Sorry, wrong again.  You fail to account for the fact that the contract is not the end-all of the situation.  If a contract contains terms or allows actions that are illegal, then there's this thing known as UNENFORCEABLE....which courts have most definitely ruled about.  A contract that permits a lender to charge unlimited and unspecified fees is unconscionable, and not enforceable, in any state in the country.  Period.  I'm not talking theories here.  I'm talking about law and case law.  Even if a consumer agreed to the terms, they still can be determined to be unconscionable and unenforceable....it happens all the time.

4 hours ago, Clydesmom said:

Making payments late is not a defense to that either.  

It is a defense and courts have ruled that it was a valid defense because the lender breached the agreement.  A lender MUST disclose and specify ALL fees it shall charge.  A lender has ZERO legal ability to charge whatever it wants without disclosure and without limit.  Again, this is law, not just some theory.  Truth in Lending Act requires 100% full disclosure, and the terms cannot be changed later on down the road without the consent of all parties to modify the contract.  Again, we're not talking about an ARM that became very expensive when the rates rose.  We're talking about the practice of MASSIVELY jacking up the insurance cost.  Read:

http://www.mpamag.com/news/compliance/company-slapped-with-1-million-fine-for-overcharging-on-forceplaced-mortgage-insurance-34333.aspx

In that example, the insurance company was fined $1 million and forced to reduce rates because it was found that customers were being overcharged by FORTY THREE PERCENT.....imagine this....if 43% is overcharging, what would EIGHT HUNDRED PERCENT be? 

This link discusses the fact that there's a law--a legal limit--as to how much a mortgage lender or servicer can require you to pay into escrow for things such as insurance...a LAW....imagine that.  And here you are pretending these are just theories...

http://articles.baltimoresun.com/1990-12-30/business/1990364200_1_escrow-account-lender-gmac-mortgage

4 hours ago, Clydesmom said:

Again, the time to deal with that was when the whole incident happened.  It was settled several years ago and the SOL to even pursue a suit against CHASE over this may be expired.  It could explain why CHASE is ignoring the requests for information.

OP lives in TN....where the SOL on fraud claims is 3 years and SOL on contract disputes is 6 years.  Depending on when in 2014 the OP finally got Chase to stop what it was doing, the fraud SOL might not have passed yet, but the contract SOL definitely has not passed.  But why even post that?  A moment ago, you claimed that this was all the OP's doing, and the lender is not in the wrong for any of it.....so why would SOL matter if "the burden is on the borrower"?  And then, if OP disputes with the bureaus, and has proof that Chase changed everything on its end relating to the fraud they committed, you now also have the SOL's described within the FCRA.  Anything within that SOL could also be actionable.

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3 hours ago, kraftykrab said:

You might know a thing or two about medical collections, but you don't know much about how mortgage issues work.  This is not the place for you to thump your chest and pretend you know it all, so please, take it elsewhere.  Not one thing you posted there is correct....not one.

That's not necessary.   Clydesmom was neither confrontational nor insulting.   You shouldn't be, either.   Also, those posters who are not OPs do not have the right to tell others to stop posting in a particular thread.

 

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BV, something is necessary because CM continues to post false information, and when she does so and it's brought to your attention, you do nothing about it.  This forum is not here for someone to proclaim their high intelligence, but to help people who actually come here needing it.  CM posts with arrogance, and there's no good reason whatsoever why someone should be here posting false information with arrogance.  The goal here should be to get proper information to the people who need it.  CM has posted far worse to others, right in front of you, with not so much as a single comment from you about it.  

 

I'm not trying to say that CM should not be in this forum, but enough is enough.  Too many times, false info gets posted and excuses get made for her each time.  There's no sense in it whatsoever.  Not one word of what CM posted up there is true.  It's that simple.  You have battled me how many times over this?  Yet, the problem persists.  One of my friends was banned without so much as a warning or even one word of explanation when he was treated like crap by CM.  Yet, even you have admitted that CM's gotten tons of warnings for her behavior here.  Unfair?  Absolutely.  

 

As far as not posting, I fail to see anything wrong with people sticking to topics that they actually know about.  There are plenty of sections of this forum that I do not post in, because I do not know the material.  There is no good reason whatsoever for someone to post in places where every answer they give goes against the law, established case law, and whatever else is relevant to those points.  If I don't know something, I do not come in here pretending that I do.  I CERTAINLY do not come in here quoting people and challenging the things that they say when that happens.  People need CORRECT information, BV....anything less than that hurts them.

 

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@kraftykrab

I do not know if the information is correct or incorrect.   It is possible to disagree in a civil manner.  Please do so.

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I have been doing that for years....where have you been?  Doing that got me attacked and got a friend of mine banned without so much as a hint of an explanation....meanwhile, we see CM time and time again mock people, insult people......even the mods here have admitted as much.....and you guys shower her with warnings....but do nothing else.  That's kinda the whole point.

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KK I wish you could come to my house and help me with this lol. I do have some of the supporting paperwork. I have the statements from Cotton states showing the extreme increase in insurance, which I didn't get until I called them and made them send me copies. I have some of the Chase statements showing the increase in payments, but I don't have the ones where it went up to $1000 a month which is part of the reason I wanted them to send all the documentation from 2010-2014. I don't understand why they would refuse to send it unless of course it shows negligence on their part. I have all the paperwork from when we bought the house including the original paperwork from the insurance. The insurance company Cotton states at some point sold out to a company called Country Wide while we still had insurance through them and I never received anything from that company. It's all a big mess.

  CM, I can see your point, but when people buy a house and expect to pay a $600 and something mortgage many times it's not going to be in their budget to pay almost double that. A lot of this falls on the shoulders of the insurance company but Chase should have seen some sort of red flag. We had to do all our own investigating as to why our payments were going up so high, Chase did nothing. When we finally figured out what was going on we changed insurance and then paid 2 homeowners insurances for almost a year because even after a cancelation letter was sent to Cotton States AKA country Wide, we once again had to do all the work for Chase who never seen a red flag and allowed it to go on. We literally had to call them every month, they took off the 2nd insurance and it was on there again the next month, and of course by the time this was resolved each month the payments were late.

  I am disputing this through the credit bureaus and Chase. I have tried to contact an attorney but it's hard to find one for this certain subject.

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KK my brother in-law lost his house due to a modification with chase. He was behind so they told him he might qualify for it, so during this time he didn't make payments. He was already behind to begin with and that's why he needed to do the modification and what is was for. Well, he did all his paperwork sent it in and they "DENIED" it, by this time he was so far behind foreclosure was next.  After they sent me the big packet in the mail I started doing my homework on these modifications and soon learned that most people who did them got screwed, so that's when we refused it, sold a bunch of stuff and got caught up.

I will NEVER have another loan with Chase. 

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9 hours ago, horsegal305 said:

CM, I can see your point, but when people buy a house and expect to pay a $600 and something mortgage many times it's not going to be in their budget to pay almost double that.

I really get that.  People buying way more home than they could afford on adjustable rate mortgages not realizing that payment and interest rate could reset at any time is what led to the housing bubble bursting.  I had several friends that lost their homes when they bought HUGE houses at really low payments on 2% ARM that reset when the recession hit to payments five or six times more than what they were before.

9 hours ago, horsegal305 said:

Chase should have seen some sort of red flag.

Unfortunately all the lender looks at is whether there is the insurance and whether the payments are made.  The burden falls to the consumer to stay ahead of when that costs goes up and why.  

The best analogy I can give is my car insurance.  I have financing through Toyota.  My insurance keeps going up significantly every year never mind that I am accident and ticket free for over a decade (almost 2) but the burden is on me to argue with the insurance provider over the costs.  Either way Toyota still wants their money.

When a mortgage lender sets up the insurance they only create the account and the payment is collected as part of the mortgage but forwarded to the insurance provider.  CHASE does not get involved in premium increases and has no control.  When the amount changes they are not required to ask any questions only to pass on the increase.  It is the primary reason I saved 25% to avoid PMI and be able to get homeowner's insurance on my own where I control the payments and they are separate from the mortgage.

9 hours ago, horsegal305 said:

I have tried to contact an attorney but it's hard to find one for this certain subject.

Most likely because you are only trying to deal with the late payments.  Try the insurance commissioner for your state.  See if a complaint to them will resolve it though it may be too late since it was several years ago.

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CM in that case, we did find the error's when they charged us for both insurances, at which time we called and had them correct, only to have to do it every month for 8 months. I think that alone shows how ignorant the company is.

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38 minutes ago, Clydesmom said:

Unfortunately all the lender looks at is whether there is the insurance and whether the payments are made.  The burden falls to the consumer to stay ahead of when that costs goes up and why.  

This is false.  Chase and others have been repeatedly fined for taking kickbacks from these insurance companies.

http://www.huffingtonpost.com/2013/04/04/insurance-fraud-kickback-scheme_n_3015966.html

https://dealbook.nytimes.com/2015/01/22/wells-fargo-and-jpmorgan-loan-officers-accused-of-taking-kickbacks/?_r=0

Here's a really good one...this is not theory, now, this actually happened....HUD investigated and here are the results of that:

https://consumerist.com/2011/09/07/investigation-banks-took-6-billion-in-home-insurance-kickbacks/

 

Horsegal, did you choose the insurance company separately, or were they "suggested" to you by Chase when you were in the process of getting the loan?  Even if you selected them on your own, there's still a good chance that Chase got to stick its fingers in that pie anyways.

56 minutes ago, Clydesmom said:

The best analogy I can give is my car insurance.  I have financing through Toyota.  My insurance keeps going up significantly every year never mind that I am accident and ticket free for over a decade (almost 2) but the burden is on me to argue with the insurance provider over the costs.  Either way Toyota still wants their money.

That's not a valid analogy at all, because in your auto loan, Toyota Motor Credit does not take your insurance money and hold it in escrow.  Your car insurance payment is paid by you directly to the insurance company.  This is not a good analogy, because in OP's case, 100% of her insurance payments go to Chase.  Toyota Motor Credit has zero involvement with whatever money you pay for insurance.  Chase is part of a mortgage industry that is KNOWN to have taken billions in illegal kickbacks.....big difference.

 

1 hour ago, Clydesmom said:

When a mortgage lender sets up the insurance they only create the account and the payment is collected as part of the mortgage but forwarded to the insurance provider.  CHASE does not get involved in premium increases and has no control.  When the amount changes they are not required to ask any questions only to pass on the increase.  

This is also incorrect, as shown by the links I posted above.  They do not just take that money, stick it in escrow, and then send out a check once a year to the insurance company.  If they did, federal authorities would not have turned up more than $6 BILLION in kickbacks to those same mortgage companies.  They are supposed to do what you described, but then they came up with all these great inventions, such as "reinsurance", where it's all about making them more $$$ at the homeowner's expense.  Most of the time, the homeowners are not even aware that these things are going on.  But there's also another problem.....OP also stold us the following two details:

On 4/11/2017 at 11:30 PM, horsegal305 said:

We were never informed of the price increase from Cotton states or Chase and had to make several phone calls to Chase before we finally found out why our payments were so high. Living on a budget and having our house payments go higher and higher made things very difficult. This went on from 2010 until January of 2013. We then cancelled our insurance with Cotton States and got homeowners insurance with Shelter Insurance with a premium of $971.00. Chase never canceled the homeowners insuarnce with Cotton States even though we sent a policy cancelation letter, so this had us paying insurance for both Shelter and Cotton states which was a combined amount of $4,112.78 a year which sent our payments even higher.

 

On 4/11/2017 at 11:30 PM, horsegal305 said:

Every month we would call Chase to resolve this issue which by the time it was resolved the payments were once again late, and month after month Cotton states was put back on our account even after a customer service rep said is was taking off. This was not fully resolved until the end of 2013 which by this time our account was so messed up we had a hard time catching up. Chase reccomended we do a loan modification and sent us all the paper work and during this time we were not supposed to make a payment which now reflects 90 day lates on our credit history.

First, Chase DID have a duty to this customer to cancel that policy and not to refuse, or to keep putting it back on month after month even after receiving a cancellation letter and proof of new insurance.  THEY are responsible for that..not the homeowner.  Cotton State insurance did not keep putting themselves back onto Chase's statement, or to Chase's account---Chase did.  Cotton State did not constantly ignore the cancellation letter---Chase did.  Cotton State did not continue to double-charge this customer for two insurance policies at the same time--Chase did.  ANYONE working at Chase, looking at this account, should have easily seen that there were two separate billing entries for different insurance companies...how many people do you know that carry two separate insurance policies on their home, from two different companies, at the same time?

Second, notice how Chase then tried to funnel this customer right into a loan mod?  Loan mods are a trap in most cases....they are not designed to help the homeowner, but to make the lender more money.  Chase screwed up, and rather than fix what it messed up, their first response is, "We can put you into a loan modification".  That's a classic money trap.  More often than not, loan mods only help the lender/servicer, and provide no real help for the homeowner to really avoid foreclosure.  It's akin to kicking the can down the road a bit...then, when you keep walking, sooner or later you come upon the same problem all over again.  Mods do not fix things for too many people.  But they sure make a ton of extra money for the lenders and servicers....

One rather common mod trick works like this--suppose you have a 30 year note, and you've paid on it for 10 years.  That means you have 20 years left to pay, if you're on schedule.  But then, you get laid off....or have a medical trauma.....suddenly, you're 6 months behind on that 20 years worth of payments.  But Chase says, "hey, no problem, we'll just give you a loan mod".....and extend your loan out to FORTY years, and MAYBE shave 1% off the interest, sometimes not even that.  Now, you're paying for the next FORTY years, and many people think it's good because they got the interest knocked down a peg....but you'll be paying that interest rate now for TWICE as long as the 20 years you originally had left.  How many people do you know that would like to pay $600,000 for a $100,000 house?  Yeah....that's what they do.  I've seen cases where a homeowner paid for 14 years on a 20 year note, and was offered a loan mod stretching SIX remaining years out to 30.  That homeowner thought they struck a gold mine, because their payment dropped a LOT.  But they did not even consider what paying it for the next 30 years will cost.  In that one, the servicer did not even drop the interest rate....they stuck all past due balances on the end of the loan and prepared to cash in.  Another issue that's becoming more common is that a loan mod that actually INCREASES the monthly mortgage payment.  A good friend of mine did not know better, and took a loan mod just like that from BofA a couple years ago.....

For quite some time now, many lenders and servicers have been in a frenzy, offering loan mods all over the place and cashing in to ungodly amounts.  In my case, I was dealing with a servicer that is known for NEVER offering any mod except for one variety--a 5-year interest only mod.  While you're paying on that, the principal is collecting more interest....and you're not even putting a tiny dent in it.  They do not even consider principal forgiveness.  That's all they offer.  When the 5 years is up, you are worse off than you were before.  They take all the supposed past due amounts, even if you dispute them, and toss them on the end of the loan where they collect even more interest.....you get the idea.

1 hour ago, Clydesmom said:

It is the primary reason I saved 25% to avoid PMI and be able to get homeowner's insurance on my own where I control the payments and they are separate from the mortgage.

Agreed on this, I never built insurance into ours and I never would.  Too many chances for them to see $$$ and find new ways to get richer off of me than they should be.

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13 minutes ago, kraftykrab said:

Horsegal, did you choose the insurance company separately, or were they "suggested" to you by Chase when you were in the process of getting the loan?  Even if you selected them on your own, there's still a good chance that Chase got to stick its fingers in that pie anyways.

Yes we did choose them.

 

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So far since Chase was unwilling to send us the paperwork we need I have disputed the late payments through the 3 bureaus. I heard back from 2 but not the 3rd. It's now been 30 days. What do I do now?

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This is happening to me with PHH. I am beside myself. Ocwen sold my loan to PHH without notifying me. I made payments to Ocwen and PHH said they did not receive payments. PHH is working out of India. I can never get anyone on the phone.  I keep getting letters with late fees, adjustments and now a past due balance and they are putting me in default. I have no one to talk to. Where are my payments I made. I am beside myself. HELP

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22 hours ago, CABEL said:

This is happening to me with PHH. I am beside myself. Ocwen sold my loan to PHH without notifying me. I made payments to Ocwen and PHH said they did not receive payments. PHH is working out of India. I can never get anyone on the phone.  I keep getting letters with late fees, adjustments and now a past due balance and they are putting me in default. I have no one to talk to. Where are my payments I made. I am beside myself. HELP

1. Do you have any records of the payments you made before the loan was sold?  This is important.  For example, I used to have a mortgage with BMO Harris, and at one point they claimed I hadn't made a payment.  Fortunately, I had made that payment at the bank, and saved the receipt.  My current bank says the canceled check is the receipt. So, if you go to the bank for which you have a checking account, and you can prove they made a mistake, send them the evidence right away.

2. I feel bad for you not being able to get anyone on the phone.  I would suggest sending everything by mail.  Make copies, and send everything CMRRR.

3. Strongly consider contacting the CFPB and banking regulators. You also may wind up having to retain an attorney.  There is a former poster from this forum who wound up fighting a foreclosure by showing wrongdoing by the bank.  As in, the bank pretty much wound up walking away from the mortgage.  I am currently contracting for a different bank.  I know from experience that banks do NOT want to be on the bad side of federal regulators.  I cannot give details, but when regulators get involved, the banks pretty much HAVE to make things right, no matter what the cost is to the bank.  As is, I've seen banks eat millions or even over 100 million to fix issues which effect multiple parties.  

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OK.  So you got a couple things going on here that need to be sorted out.  A couple initial items I think you need to check and share if you have the records.

1.  Your mortgage servicer is required to send you an escrow statement and analysis every year.  That is where you need to start and see what they are charging and what is driving your payments either up or down.  They have to disclose any changes to the escrow and why.  Do you have any statements from them in the past 3 years?  

2. Did you ever let your homeowners policy expire?  It sounds like they did Forced/Lenders Placed Insurance on you.  That is the worst type of insurance, really expensive, profitable to the servicer and insurer and provides the bare minimum in coverage to protect the lender/investor in your loan.  You get screwed on these policies.  Chase and many other companies got in real trouble back about 3-4 years ago for running scams with these insurers where they were taking kickbacks for driving accounts into these policies.  If they did LPI on you, that would explain the 2 coverages.  Chances are they sent letters to you at specific times asking for proof of coverage.   If you did not respond, they will automatically place the coverage and not rescind it until you provide proof of coverage.  Check for those letters if you are saving documents. 

3.  Do you have an ARM?  As asked, this loan can and will change over time.   Again, the servicer must provide a statement annually about any rate changes.  And no, the rate can not change at any time, only once per year in a window specified by your mortgage note.  

If your servicer is not providing any of this information in writing, annually then they may have some serious problems.  I would find that hard they would not as this would be way to easy to haul the into court over a boatload of RESPA violations.  

As stated before, right now your fight is with Chase and the servicer who collects your payments.  I think Chase sold most of their servicing rights to avoid these exact legal traps.  And yes, as stated by a previous poster, they settled for significant dollars based on lots of bad behavior. 

I had the same problem for a long time with my mortgage servicer (Nationstar, now Mr. Cooper). This company is a real joke.  At first I tried to deal with them and literally had multiple RESPA violations.  But this is a very tricky area of the law.  Not something to play around in for amateurs. Nationstar continued to blow off and lie to me about everything.  It was eventually resolved and settled with legal assistance.   There are no ethical mortgage servicers out there.  

RESPA violations have a 2 year SOL.  But, if they are still not correcting legitimate errors, your window may still be open, even though this goes back many years.  If you have any of the above I would suggest a summary timeline of what happened.  In the end, if you have a legitimate issue, your best bet is a consumer attorney.  

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