I need help with some terms my mortgage company is throwing at me. Please let me know what you think. I have a small property loan with JPMChase. after going down their endless trail of hoop jumping for the help program they offer they've now decided to "Charge Off" my loan... And if they don't get payment in full by April they're going to sell it to a "Private Investor" who will get his money "however he can". So, I have been trying to get a loan modification for a year and paid all of what they asked on time in full. It was a modified rate that they set as a trial for a permanent mod. So...ah, any ideas what I can expect if the sell it to a "private investor"? Thanks.
You have not supplied enough data. Have they started foreclosure proceedings? Are you behind on mortgage payments? If so, how far behind? What were the terms of your mortgage? Was the rate variable? Was there a provision specifiying refinancing after some period of time with an alternative of your paying the balance in full rather than refinancing?
Sounds like a collection company. They'll probably start harassing you via phone. Also it's May, so do you mean next April, i.e. 11 months?
It will typically have fewer properties in its portfolio than a bank, so it can concentrate on yours. It will also typically have fewer scruples than a bank, so it will be more likely to, at the very least, harrass you and, at worst, break the law. But ultimately it depends very much on the particular property. There's a glut of foreclosed properties on the market, people are broke, and banks are gun-shy and reluctant to lend on favorable terms, so the new owner won't be able to sell it quickly, even at a reduced price. Many reputable financial institutions have formally foreclosed on homeowners but stopped short of the final step of actually evicting them. Their reasoning is that the owners will continue to keep the place clean, repair any problems, mow the lawn etc. They'll even keep the lights on and have a car in the driveway and toys in the yard. It is much easier to market a home in this condition than one that is empty, dusty, overgrown and desolate looking. You get a few houses like that in a neighborhood and the whole neighborhood starts to go downhill, reducing property values even further. It would help very much if you knew how much the new owner paid for the place. Then you could estimate how quickly he can sell it. If it's going to take him a while, according to what I've been reading there's at least a chance that he may not physically evict you. This would give you time to get back on your feet and make some kind of mutually agreeable settlement with him that could rehabilitate your mortgage and your ownership. These are a lot of "if's" and I don't work in the finance industry so I'm not qualified to give you advice. But these are things you should think about anyway.
I don't want to scare you, but this sounds very serious. I suggest you contact a HUD counselor at the earliest opportunity. This sounds like a foreclosure to me. But since I don't know your situation, I really cannot render an opinion on the matter. But I do think you need some advice. I suggest using the link below. http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm Good luck.
Thank you very much for the responses. It means a great deal. I'm trying to work through this blind so I'll tell it the way I best understand it. They have been promising me a modified payment is all but finalized, in the meantime I'm paying a "trial modification" amount. The amount I'm behind would be the difference between the original payments and the reduced payments they set for my "Trial Modification". It's probably around 1500.00 us. That said, I've paid everything they've asked on time, IE: this is their arrangement, not mine. That's what I'm thinking. But when I asked Chase if the note gets sold, would it be with the original contract intact? He gave me a clear: YES. I'm hoping it doesn't get that far. They offered me a "buy it now" price and I'm trying to negotiate it down. This loan is in conjunction with another that covers my property and house. The first has been permanently modified and this one was the loose end so to speak.. As of now they offered me a price LESS than .50 on the dollar but when I agreed and asked for paperwork stating as much they said "sure thing" ...and now nothing..no papers and they won't return my call. Typical of the nonsense we've been through over the last few years. Thanks, Joe. I'll look in to that.
