Success Case

Original Payment for Client: $2,370.97
New Modified Payment: $1,850.52

The loan modification process has become dreadful for most homeowners.  On Wednesday, reports show that trial modifications that are supposed to last only three months are passing the six month mark.  About 97,000 homeowners have been on these types of extended trial modifications.  More than 62% of the 97,000 homeowners have their loan with JPMorgan Chase & Co. 

Following Wells Fargo & Co. and Bank of America Corp., Chase holds the third highest amount of loans that may qualify for the government programs.   Thomas A. Kelly, the spokesman for Chase, said the time it took to for clients to submit the documentation required was the reason for the extended time period of the trial modifications.   

Clients are concerned about the number amount of times they have to submit the same documents and lenders are claiming clients are taking too long to submit requested documents, proof of income seems to be the most problematic to provide.  Most borrowers were getting denied a final modification after their trial period because lenders had granted them a trial modification without carefully evaluating their documents.  New regulations require lenders to evaluate all documentations before qualifying borrowers for a trial modification.  In this case after the three months were complete, the lender has to grant a final modification or they would be penalized.