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Obama’s “Making Home Affordable” – which banks are participating?

Mon, Mar 9, 2009

Foreclosure, Mortgage Loan

Loans with Fannie and Freddie MUST participate in this program. All other banks can voluntarily participate. I’m working on getting a complete list – but most banks are since they need to participate in order to get federal financial help. Chase bank is participating.

Don’t know what type of loan you have? Find out if you are eligible here: http://www.makinghomeaffordable.gov/

If you call Chase’s customer care phone number the recording will instruct you to visit www.chase.com if you are calling in regards to President Obama’s refinancing or loan modification initiative. If you stay on the line to speak with someone, they will instruct you to this website: https://www.chase.com/myhome.

Chase will ask you download a PDF application found on this page: https://www.chase.com/chf/mortgage/hasp, fill it out, collect all the required paperwork, and fax back the application (expect it to be about 70 pages of fax). In 7-10 business days you will get a response via snail mail.

I have clients that submitted the entire application on March 15th and haven’t heard anything yet (See UPDATES bellow). I called Chase to see what was up with the delay and they said that due to the volume of applications they are taking longer than 7-10 days and are taking more like 30 days.
UPDATE: It is April 16th and Chase is now telling them 90-120 days.  Called Chase. Their application that was submitted on March 15th just got assigned to someone on April 14th and now the timeline is projected to be 90-120 days.

UPDATE: It is June 19th and they haven’t heard a word from Chase at all.

UPDATE: It’s July 6th and Chase sent a snail-mail letter saying they would get to the loan modification request within 30 days.

UPDATE: It’s July 27th – nothing yet.

UPDATE:  It’s August 4th – 38 days since the letter saying they would respond the the request in 30 days. Broken promise again!

Here is some of the information you’ll need to submit to the bank to apply for eligibility for this program.
chase

Only about 9% of eligible borrowers are getting modified! Find out how your bank stacks up within this New York Times article.

Here is some interesting statics about how many people are actually getting loan mods:

Read entire article here.

updated 9:48 a.m. MT, Tues., Aug 4, 2009

WASHINGTON – The government’s $50 billion program to ease the foreclosure crisis is helping only a tiny fraction of struggling homeowners.

As of July, only 9 percent of eligible borrowers had seen their mortgage payments reduced. And a progress report on the plan Tuesday showed that 10 lenders had not changed a single loan.

Bank of America Corp and Wells Fargo & Co. — which have received billions in federal bailout money — were below average. BofA, which did not immediately comment, modified 4 percent of eligible loans, and Wells Fargo 6 percent. And Wachovia Corp., which was taken over by Wells Fargo last December, modified just 2 percent.

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21 Comments For This Post

  1. admin Says:

    I put together the Borrower’s Assistance Application and faxed it – it was 71 pages long!!!!

  2. Terra Says:

    Making home affordable program is joke. I just received my trail payments from Chase and they were equal to my current mortgage payment. How is that making a home affordable? I called Chase and told them the reason why I was applying for this program was because of a decrease in income and additional childcare expenses. Their response is you have to make the trail payments to determine eligibility. After reading the small print on the documents stating “this is most likely going to be your new modified payment.” So I saved $50 on my monthly mortgage payment putting me at a 40% debt ratio due to my pay decrease at work. What happened to the 31% that was set by president Obama?

  3. charles Says:

    yeah it sounds good until you do the calculations. take the money from closing costs and buying down points and instead stick it someplace else, mutual fund or mortgage principal. this plan is only good for people that have outrageous interest rates due to an ARM.

  4. Rusty Says:

    Feel lucky you don’t have bank of America. 120,000 loan refinance though the program (Homes worth less then loan) will cost me roughly 8,000 to close including points which they are bouncing AND jacked up fees for everything.

    So I’m looking at roughly 10,000 under the making homes affordable @ a crappy rate and premium fees. The program is criminal and the banks are loving it. I really want to walk away and say f-u o them. I cannot believe how all this is working.

    *Also Bank of America is under valuing property rates to limit that 105% to value they are using, very nice. So where did all this government money go again? We have all been taken for a ride folks.

  5. John Smith Says:

    Rusty has that right. I contacted BOFA (previously Country Wide) and was told the same line of crap. My home is worth $160,000 less then we paid for it and they will only refinance 105% of the loan the rest I would need to pay out of pocket. That would be totally stupid. Total BS,they’d rather I walk out of my home then refinance it for me. I’m not able to do a modification because I am a hard worker and pay all my bills on time. Hussein Obama is a communist and is clearly trying to wipeout the middle class with programs like this that rape the average homeowner. I hate to wait until midterm election but vote all these democrats communists out on the street!

  6. Robyn Says:

    I have Chase bank and they require $700 upfront before they even tell you if you qualify. Also, my loan was purchased by them from another lender so they are not able to modify it at this point. They say in the next few weeks. Closing cost projections are also very high. They are doing everything in their power to not make it worth while to refinance. Thanks Obama

  7. Bill Says:

    Just let go of your home and go bankrupt. Start fresh and breath again. That’s what I going to do. Yaaaa!

  8. A real criminal Chase banking joke Says:

    I think it is criminal how the banks have accepted $75 billion of our tax money and not only appear to have very granted few mortgage reductions, I’m also questioning the duplicity and legality of their actions. With Chase, I was repeatably told that my application was “Incomplete” despite multiple proven faxes and FedExs for a moving target “missing” documents that changed every day depending on who I spoke with on the phone and no real documentation explaining what was wrong with the basic complete documents I was sending. Then after 60 days my application expired. The final cut with this joke of a process was a letter stating they were reporting me to the credit companies and foreclosing on my home–when in 8 years I have never even been late even a day on a payment. Apparently, they are sending the same form letter to everyone. I truly believe there may even be some sort of conspiracy–it is the only way I can explain the phone tactics and how I was given false information and how mysteriously my paperwork was never adequate when in reality it was just fine. I spoke with a Chase supervisor who confided in me who ALSO had the same experience himself and is getting numerous calls from people who were told their application was “incomplete” and also received the same crazy letter. These banks need to be publically shamed and held legally accountable as well as govenment for allowing this to happen–what a joke and a waste of time. Please call your local media and 60 Minutes about your experience.

  9. pat krell Says:

    I too am being told this same story that all my material has not been sent. They say they are behind because of so many applications. Guess that is why as of Aug.09 they have our money to hire over 900 new workers that may not be trained to handled all this info. coming in. I feel like everyone else, it’s a large company that is not handling our money with any kind of knowledge. Where is the person that can train these people? I am looking forward to seeing a change soon while the % rate is helping everyone else. This is written after I am told to send more info. It is now August 6th and my info was sent in in early April. What a way to by pass the issue at hand. Get things done!!!

  10. Roberta Says:

    My husband’s brother died suddenly (9/3/08) at 51yrs. from a infected IV. My husband worked for him, he had to take a $600 week cut in pay to keep his job. We have been current. Can’t buy food and some utilities have been shut off. Had a fire that burned up AC unit in May. I begged for help Sept 2008 and every month since! I get hang up after hang up when being transferred and told to be patient they are swamped. They reported us late late 1 time in 22 years. I am fighting it. I told them I was filling up gunite pool with dirt, taking my high end appliances and walking away…we bought it as foreclosure/fixer upper and they can have it back….they don’t care! Does anyone care? I bought food Dec 2008 and May 3008. Living on peanut butter sandwhiches and 99 cent hot dogs.Sad thing is we do have equity. I know we can’t make Oct pmt and trying to avoid this because the year wait will start all over again if I can bring up my husband’s credit score. What can I do? Any answers greatly appreciated. CHASE>>>Careless disHonest Selfserving a..holEs……….
    Roberta
    klatthom@aol.com

  11. Hector Carrasquillo Says:

    Obama’s program stcks, because the banks are not helping at all, they are just prolonging the process so we could get more deeper in trouble.

  12. Melissa Says:

    Has anyone had experience with Wachovia aka Wells Fargo and the making home affordable program? I have been calling them since June 2009 and I am told every month that they are working on getting the program ready to offer. Now it is almost October and they told me they are shooting for November.

  13. Gayle T Says:

    Chase has also given me the run-a-round for months then denied me on bogus and false reasons. Totally not in compliance with Making Homes Affodable. They have activly advertised that they ARE partipating but have repeatedly falsly denied most claims. I strongly believe that this is in violation of the Fedreral Trade Commision.

    My latest denial was because I did not have “seasoned Assetts”. Can you believe that! If I had “Seasoned Assets” I wouldn’t be at risk of losing my home!

    So the BIG Question…. Is or has anyone started a Law Suit. I have email verification of smoke screen denials, which I believe violate the Federal Trade Commission, beings the openly advertised they were participating in the plkan and they did accept a bail out.

  14. jeana Reed Says:

    I paid trial loan mods going on 8. I also get the run around,. Did not receive do. refax of course I did everything they asked promptly over and over again. Hear the same song and dance. They are not making loan mods final. So what they are trial not finalized. I’ve called everyone and emailed Whitehouse.gov everyday. Yes! everday. I finally called a number from the treasury Dept/ they called me and said they do take this serious they said they would call me back they have not but I did get a call today from the Executive Resolution in Ohio and she said she would let me know the status immediately, or as soon as they get back with her. I’ve already dealt with Chase Resolution for several months still waiting. They string you along keep paying but then at the end they deny you. I told Ex. Resolution today they are doing this to everyone. If you want to foreclose let me know now. I have had enough of the banks crooked greedy lying ways. Banks are only going to help ourt mortgages they can profit from….

  15. emily Says:

    Great site. Thanks for your thoughts.

  16. Dave C. Says:

    We started this process with Chase back in April and have sent packets of info (between 87 – 99 pages each time) three times. It’s the same thing, P & L Y-T-D info, tax returns, 4 months bank statements – on & on. The last shipment (99 pages w/8 more faxed the next day) was on 9/2. Last week I called to follow up and they say a decision was made 10/8 but the rep wouldn’t tell me because I’m not authorized to speak on behalf of my wife (even though I have the letter of authorization from 2003). I finally reach another rep tonight and she informs me of what is required this time. It’s the same boilerplate as before but she slips in there that the account has been closed because of insufficient info. She’s telling me what is needed to start the process again. So all this runaround to tell me they’ve shut us out because of proof of insurance being paid was not included even though I have a fax record. No call, no letter stating what was needed, just a denial after 9 months of sending them exactly what was requested. These banks are the real criminals in this mess and they keep profiting no matter what happens.

  17. GR Says:

    Screw this….Chase put me through so much B.S. 3 timnes that I am just not paying anymore. I am walking away, if Chase wants this house…THEY CAN HAVE IT!

  18. Kay Says:

    I have been contacted by a form letter with no company name on it just “Loan Modification Dept.” at the top stating “Loan Modification
    Notice”. It states I may be eligible for a reduction of 30% – 60% on my home loan payment. This offer is good for 30 days and subject to certain conditions, and they offer to negotiate my mortgage to save me thousands of dollars. After asking what they charge I was told the cost is $3,500, with $2,500 now and another $1,000 at closing. The letter was signed “Certified Hardship Analyst” with no name. When I called them at 888-736-5699 I was told they are Quest Financial Solutions, not a bank or finance company; they do representation for getting loan modifications. I was given quite a sales pitch, to hand over documents (fax) and a check for $2,500. I don’t see how they could magically get a modification done by the end of December especially because I am current on my mortage and other payments.
    So watch out for potential scams.

  19. Katy Says:

    We tried working with Countrywide Mortgage before they changed to BofA because my husband and I both got laid off from our jobs and found new jobs for less money. They started by telling me that because we were not late on a payment – they couldn’t help. well – after we cleared out both of our 401K’s hoping that a better job would come along, we ended up late on payments. Now, Countrywide is BofA and they said they could have helped me get a lower interest rate – but – we have over 30 days past due and they can’t help that way. So – we tried the other process that they had, and ended up with a HIGHER house payment – because they were rolling some of the back costs into the payments. When I told them that we couldn’t pay more – because we couldn’t even pay what we owed – they said “so you are turning down our offer?” LOL – I said yes, I am turning down your offer – that was on Dec 4th – I have already been contacted by numerous companies about my “pending foreclosure”.
    No Help Bank of America –
    It’s amazing to me that they will kick me out of my house and sell it for the market value (which is 1/2 of whay I owe) and let someone else have a lower payment – But…. I can’t have it!

    Unbelievable!

  20. heinrich fox Says:

    KAY, I had dealings with “Quest Financial Solutions” as well. $3500 here too. If you go to the BBB website, Quest has an A rating but after hearing the pitch from Quest salesman: Drew Deangelo (nice go-by), I faxed in our mortgage disclosure and they got back to me and said that we qualify for a loan mod and that they will email an attached packet that they want us to give to fedex along with $1200 the next day at noon. Well, after googling addresses, fax numbers and phone numbers, none of them jibe with the quest financial with the A-rating on BBB. One fax number: 949-462-2171 leads to Rockfield Law Group, who has an address down the street from the given address and has an F rating on bbb. The address on bbb for quest is in Santa Ana, CA and the packet you’re expected to mail in goes to 23101 Lake Center Dr. Suite 205 Lake Forest, CA 92630 (A suite that google shows being occupied by Hieu T Ton, Qualified Lending, Inc). In that business plaza, there is no Quest Financial! SCAM SCAM SCAM!!!!! I’m blogging, contacting the real Quest Financial and filing fraud complaints with the BBB.

  21. Jerry Says:

    Making Home Affordable is just another Obama hoax…

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