Mortgage Forum

SuzieQ

We filed a chapter 13 in October 2006 and have been making the payments. In March 2008 we got behind for the February and March payment due to college tuition and car repairs. I immediately called Chase and explained to them the problem. Our loan also had readjusted in December 2007 and the payment increased $500.00. Like many other people we thought our loan was a fixed, however, it was fixed for 36 months then went to a 6 month readjustment. I spoke with the Bankruptcy Dept at Chase and they suggested a loan modification - I questioned this as we are in a Chapter 13. The officer stated they are now offering this and did advise I was current on my payments. I told her please check this as I knew I was 2 months behind. She stated the system shows you are current but you are actually 2 months delinquent. I asked how this was possible and she stated because your account had not been audited. I still do not understand this. I was told it would take 60 days to get approved. I was directed to the loss mit department and they obtained information needed. They stated our income vs outgo qualified us and to fax the information they requested along with letter of hardship. I did this immediately. At the time I was due 2 payments - I was advised to have the 2 payments available when the loan modification came through. It is now May and I have called them every 2 weeks. Last week we received a Motion for Relief and the date is set for May 23rd. I contacted our attorney and he will go to court and take the 2 payments with him. They state I am now 5 months delinquent but I show 4 and had the checks to prove this. I was told not to make the payments as they would be added to the end. I again called the bankruptcy dept yesterday and was assured by another loan officer they ARE offering loan modifications to people in Chapter 13 - the did not use to do this but are doing this now. I explained to them what had happened and asked if this would effect the loan modification and was told no. They put in a request to the underwriter to please complete and send the modification package. They said it was 98% I would qualify as when I first applied if my income vs. monthly payments was not sufficient I would have been rejected then. My attorney states he has not heard of any Chapter 13's being offered loan modifications. I live in Illinios - could you please clarify this. I am very nervous now as I do not have the additional 3 payments. I am current with my trustee payments. Thank you