I like I said only want to go back to my original debt. I only wanted some forbearance on past due so I would not show delinquent. That is what I want now. Take off all the charges and fee’s for instructing me not to make payments. Once I start payments at old rate, show me as current. Make adjustments and report to the credit agencies on the delinquents Chase instructed me to do. And last of all stop the foreclosure process completely and take off in foreclosure in the credit agency reports.

Not asking for a bailout or huge modification.

I just want to have Chase fix what they broke. They are the ones who set the rules for their modification process. If the mortgage contract was broken, it was on their instruction and rules.

I am not for a bailout of this mess. I am for the banks should have to make some amends on things they did. Many in the foreclosure mess are not at fault and the banks in many opinions engaged in flat out fraud. The homeowner was trying to do the responsible thing. They were seeking help with modification.

I am an older veteran on 100% total and perm disability for injuries and get Social Security. My wife now works for the VA. Payment is not an issue. Chase doing the right thing and letting me is another issue.

I purchased my home on VA. I had to make the stringent underwriting criteria. My income was and had to be at I think the 31% thing. Although not required, I was able to put 15 to 20% down.

My wife lost her job in 08. I called Chase who many think here is the victim, to let them know I would be a few weeks late on my payment. I was current and had not missed a payment in 3 years (with original mortgage company) of the note. As I talked the Chase Rep who took about 20 minutes talking me into modification. I declined and told them I would just pay the late fee and move on.

I get a call a few days later and the Chase Rep again very strongly advised my best option, with the way the economy was at the time to do a modification. Again after about 20 minutes of conversation I agreed to apply. This was the worst mistake and decision I have ever made.

The initial process took over 5 months. I was told and INSTRUCTED specifically not to make the mortgage payments during this time. I was told they didn’t or couldn’t except payments during the modification process because they needed the numbers consistent from time of application. I was specifically told if I did make payments the modification process would be immediately be terminated.

I did as I was INSTRUCTED to by Chase. I trusted they were making the rules of the modification process. Guess what. After 3 months, while instructing me not to make payments or face consequence, they foreclosed on me.

What is Chase answer. First time I didn’t qualify (after taking 5 months and put me in foreclosure)for not submitting paper work I was never told to submit. They however, then said I should reapply since I was now in foreclosure, as this would stop that process. I did and was after another 4 months put on a “trial plan” I was making the required payments. On the last one they suspended it, and again claimed paperwork. This time I had sent everything in and had certified copies of the mailing. So they put me through the process again. I have now been put through the process at least 8 times. Each time taking 2-5 months. They continued to instruct me not to make payments. I began to question that, so documented the calls, including recording them. I tried at least 3 trial periods, Each time Chase terminated the plan. Twice for not making the payments. I have the paper work however that shows the plan was terminated approx. 4 weeks before I recieved the plan or plan was made. That happened twice or the good old didn’t turn in paper work thing, which came just as the plan was to be made permanate because I had made each payment in the trial.

I am again in the process. During the last 8 months I was told they couldn’t do a modification because I had not met the “Investor Criteria” of at least 12 payments (Chase was the bank who bought my original note) I tried to explain the problem of their instructing me not to make payments. I asked who the investor was, so I might talk to them. They could or would only tell me the Government owned the note as the investor, but couldn’t tell me which agency.

I finally called VA to assist me. My income to debt ratio is 80% of my monthly payment. I didn’t qualify for a VA “refund” The VA could not help,except to call Chase. They said Chase according to rules had make a modification if I could prove I could make the payments, which I can. Chase then threw in yes that is right, but the investor won’t let us and VA said they could not regulate what the investor criteria was. They could only work that if Chase owned the note.

Well after another 7 months now, I have been calling every Government agency to find the Government investor. I was not on any of those list. The only agency in Government who has anything to do with my mortgage are the VA and agencies who guarantee the loan. Now in the last month, I have found Chase is and always has been the holder of the mortgage and there never was an investor. In the last year they have added over 25K in fees and interest.

I have contacted my Senators, and Congressman, VA, Office of the currency, the Attorney General of my state and the 50 state Attorney Generals Investigation. I have testified in depositions for Fed. Court suits about this for others, as this appears to have been a normal practice for at least Chase.

By the way. During this time, and before I was even delinquent, they made it so I could not get a new refinance as they reported the delinquency to credit agencies.

So in essence the deal with Chase to a lot of us is: They talk one into modification. They string the process out several months and instruct people not to make payments. They then report these past due payments they instruct as part of the process or be denied a mod to credit agencies. At that point one cannot get a new loan or refi based on the credit report. While doing the mod, they do foreclosure for past due amounts and increase original loan thousands of dollars. Then they claim they can’t do a mod because of investor criteria. Then it is they can’t tell in their records who the investor is (which is when I became suspicious as how could they tell me I didn’t meet criteria, but not know who was making that criteria)

Then it turns out there is no investor. So the bank (investor) tells people not to make payments, then deny modifications for not meeting their own criteria. They however continue to process modifications many times and doin so collect and add cost onto the original note.

So don’t run that crap that everyone in foreclosure either bought home they couldn’t afford. Or the crap of making bad decisions. Or just take your lumps and move on.

I again am not for the Government financing a bailout. But I am sure as hell for the banks who did this to people and we can prove it, be made accountable for their decisions to do this to people. I don’t care if in fines, settlement or whatever. But in these cases which there are and any responsible person can find them, the banks should be made responsible for what they did.

All I ever asked was to go back to my original payment. Show once I start payments I am current, and make amends to my credit rating with agencies for them causing me to be delinquent.

I am at a loss of what to do next, if they deny my latest application. I am tired of messing with Chase so why not just live here until I have to leave. Or should I sue as several attorneys say I have a great and documented case. That cost about $200 per hour and about 6K at a minimum.

I am under water now, I bought my home at 161K and financed about $148K. The home just appraised at $118K. But with added interest and fee’s Chase says I now owe $176K.

So spare me the pity on the bank and all homeowners in foreclosure are at fault crap.

Get your head out of the sand, we WILL feel the pain and there is plenty more to come.

If the average cost to those helped is $55,000, that is about 30% of the average cost of each home helped. Medium existing home sale price for 2008 is $198,000 which is down from $221,000 in 2006. Thus, the fix is 3x the fall of the average sale price. Why not give people the drop in their house price and get them to sell it?

If you fix the supply side by bringing down some of the # of foreclosures, how does this fix the demand side (ohhh yeah, they get 10%, $8,000 tax break for new buyers yet 65% of population owns homes already). Right now, no one is buying, except the lucky few with cash holdings. No one wants to buy because they don’t know if they can sell (whether it is 100 homes on the market in their area or 90 due to holding of foreclosures).

The long-term price of a home is tied to 31% (or some %) of our medium income, as house needs to be affordable. Yes, people did bid up prices to where they had to fall – thinking it was a safe investment, so government helping now only softens the fall, it does not prevent a future fall. Price is the price people will pay for it long-term. Thus, the only people this bill helps are (1) those who get the help and (2) those who need to sell a home without buying another one (note, if you take a discount on selling, you get a discount buying). Does it matter if your house lost $50,000 from $250,000 to $200,000 if you aren’t selling? If long-term price is $225,000, that is what you sell it for in 5+ years.

In actuality, the fix may lower future home values because
1) If people are paying 2%-3% more in taxes to pay for all the bailout, that drops the magical % from house (31%) down.

2) If there are more Treasuries out there with higher yields (due to increasing supply of debt), the % rate for mortgages goes up bring down the amount people can borrow.

So, the fix is just trying to soften the fall that will lower future home prices – long-after this Congress and administration is gone.

a) if there are too many foreclosures in your neighborhood, the value of your home will go down
b) if a lot of houses stay vacant with nobody cutting the grass, the value of your home is affected
c) the crime in your neighborhood may go up
d) if a lot of your neighbors stop paying property taxes as well, your town will get less in revenue and will raise your taxes
e) if you live in a condo and not in a house and many of your neighbors don’t pay common charges, then your common charges may go up and/or there may be a special assessment. Banks don’t care about your complex, and they are likely not to bother to show up for board meetings or vote or even sign proxies. If not enough people vote, no decision about vital repairs or anything can be made. Or banks can vote against every expense even necessary ones.

Hell, I could finally build that new fence I want if my neighbor dips out.

As to mortgage interest deduction – it is good for the economy when people buy homes, hence the interest deduction – to promote home ownership. Banks get profits, can give more business loans so businesses can expand. The owners invest in their properties – unlike tenants or rental owners – which means they can remodel a kitchen or a bathroom which gives job to contractors and sells appliances. Home owners create more jobs than renters, people who get jobs pay taxes. Banks who gets income from interest pay taxes too.

As to Greenspan, yes he made a number of mistakes – specifically related to deregulation and support of “new” mortgages – but lowering the interest rates after the internet bubble burst and after 9-11 was hardly one of them. There was a recession than, then there was fear, and the economy needed help. Maybe he kept the rates low too long, but reducing rates during a recession is pretty normal. Right now the rates are even lower.

As to the housing rescue – I may see some problems like I think that when the judge lowers down the balance, the bank should still be able to get the full cost if the price goes up later on and the owner sells with a gain. Why should the owner get this money? There may be other things that I don’t like.

But as to everyone’s rightful indignation, the way I think is – what is best for us, who are responsible: having home in our neighborhood foreclose or not? Will it cost us more to help these owners many of whom don’t deserve help or letting more houses foreclose and the economy continue to go down the drain with many of us losing our jobs eventually? So the main issue for me is will this bill help the economy or not. I don’t have an answer – yet. But I do suggest people look at it from this standpoint.

The fact is that there are people that took the risk of buying a home, signed multiple papers that reinforced the risk, and now will get bailed out when times get tough.