Consumer complaint received 2017-06-29
Product: Mortgage — FHA mortgage
Issue: Struggling to pay mortgage — 
Company: JPMORGAN CHASE & CO. (WA)

Chase is denying XXXX XXXX for a FHA HAMP modification. Below are their reasons and my/XXXX 's responses. <P/><P/><P/>XXXX is responding to Chase appeal decision. HUD ticket number XXXX with XXXX XXXX was told that as long as XXXX XXXX is in mediation Chase will not communicate with HUD. That does not seem right when we are actively trying to pursue resolution. On XX/XX/XXXX XXXX XXXX ext XXXX at Chase stated the only reason XXXX XXXX is not eligible for a modification is because she did not reaffirm her debt after BK. That is not correct. FHA does NOT require you to reaffirm your debt after BK. XXXX is escalating this denial and request that Chase review XXXX XXXX under the proper FHA Guidelines. <P/>Chase reason 1. We couldnt review the loan for the FHA Modification Program because ended on XX/XX/XXXX. <P/>XXXX 's response :. This is not a valid denial. I have attached XX/XX/XXXX FHA HAMP Guidelines. <P/><P/>Chase reason 2. We determined your loan wasnt eligible for an FHA HAMP because your housing ratio is too high. We calculated your housing ratio of 40.65 % by dividing your monthly mortgage payment of {$1200.00} by the gross income of {$3000.00}. The highest ratio we can approve is 31 % XXXX 's response :. This is not a valid denial. Income was not correctly calculated. The guidelines do NOT require a 31 % DIR in fact just the opposite. I have attached XX/XX/XXXX FHA HAMP Guidelines. <P/><P/>The borrowers monthly mortgage payment ( including principal, interest, taxes, insurance, and when applicable, association fees, existing escrow shortages ) prior to the modification is greater than 31 percent of the borrowers verified monthly gross income. <P/>Chase reason 3. You filed you Chapter XXXX Bankruptcy protection on XX/XX/XXXX but didnt reaffirm the loan before your bankruptcy case number XXXX XXXX was discharged on XX/XX/XXXX. As a result you have no personal obligation to make payments but we still have an interest in the property and may take action, up to and including foreclosure. If we dont receive the payments to keep the loan up to date. The last payment received was on XX/XX/XXXX for {$1100.00} XXXX 's response : This is not a valid denial. I have attached FHA Guidelines that specifically state. Mortgagors with an active Chapter XXXX or Chapter XXXX bankruptcy case are eligible for FHA Loss Mitigation Options to the extent that such Loss Mitigation does not violate federal bankruptcy law or orders of the Bankruptcy Court or Bankruptcy Trustee. In addition, mortgagors who have received a Chapter XXXX bankruptcy discharge and failed to reaffirm the FHA-insured mortgage debt under applicable law are eligible to be considered for Loss Mitigation Options. <P/>Chase reason 4. You filed for bankruptcy or the debt from this mortgage loan was discharged in bankruptcy and you didnt reaffirm the debt. We cant complete an assistance option that includes a partial claim or mortgage recovery advance if a loan has been discharged and not reaffirmed because it would violate the bankruptcy discharge order. <P/>XXXX 's response : This is NOT a valid denial. I have attached the FHA guidelines that specifically speak to BK XXXX and XXXX. <P/>. Mortgagors with an active Chapter XXXX or Chapter XXXX bankruptcy case are eligible for FHA Loss Mitigation Options to the extent that such Loss Mitigation does not violate federal bankruptcy law or orders of the Bankruptcy Court or Bankruptcy Trustee. In addition, mortgagors who have received a Chapter XXXX bankruptcy discharge and failed to reaffirm the FHA-insured mortgage debt under applicable law are eligible to be considered for Loss Mitigation Options.