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Did Chase Bank Raise Your House Payment?

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stewert Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jan-17-09 10:31 PM
Original message
Did Chase Bank Raise Your House Payment?

My Father has been paying $409.00 a month on his house payment for a long time, at least 10 years, and all the suddent he gets a letter from Chase sayig his payment will be raised to $485.00 a month, starting next month.

This seems strange to me because it has never went up before, does anyone know why Chase is suddenly raising monthly house payments. And no he did not miss any payments.

I though home interest rates went down, so how could his monthly payment go up. Especially after years and years of it never going up. Does anyone know why, if not, who would I contact to find out why his monthly payment suddenly went up.

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dixiegrrrrl Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jan-17-09 10:35 PM
Response to Original message
1. Real estate lawyer is who you need. Usually consultations are free.
Or if there is a low income housing advocacy group.
First thing to know is what kind of mortgage he has.
A "fixed rate" mortgage usually cannot be raised, but the devil is in the fine print.

So you need to read and understand the mortgage or find someone who can.

Been a lot of complaints mentioned on the boards here about illegal rate raises.
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POAS Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jan-17-09 10:35 PM
Response to Original message
2. Could be increased taxes and/or insurance
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NMDemDist2 Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jan-17-09 10:36 PM
Response to Reply #2
3. that was my thought too, with possibly a 'fee' for holding the impounds? n/t
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shraby Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jan-17-09 10:37 PM
Response to Original message
4. Are his taxes and insurance on the house
included in his payment? If they went up, that would cause a raise in the payment to cover the extra cost of the taxes and or insurance.
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ProgressiveProfessor Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jan-17-09 10:37 PM
Response to Original message
5. Is it an impound account?
or is there an interest rate adjustment?
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NRaleighLiberal Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jan-17-09 10:44 PM
Response to Original message
6. Typically these things can happen if the escrow balance is judged insufficient
because of some sort of change - a tax increase, a miscalculation, an insurance increase. But when this happens, there is typically a warning note and the recalculated amount. We've had our amount adjust a bit over the years, but it usually is no more than 20-30 dollars a month.
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tabatha Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jan-17-09 10:46 PM
Response to Original message
7. Chase is doing some funny stuff.
I am canceling my credit card with them.
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metapunditedgy Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-18-09 01:28 AM
Response to Reply #7
8. Me too... funny you should mention that.
I'm paying a huge late fee (on a small bill) because I forgot to pay it, and it wasn't forwarded to us in time by the Post Office. A few years ago, I had a similar problem and I called them and they said "No problem, forget it."

This time, I talked to several people and they said there's no way they'll drop the late fee because (one guy literally said) "It's the only way we'll make money."

I told them that I keep that credit card only because I used to find the customer service to be excellent. Now, it's not. Goodbye, Chase.
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pinniped Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-18-09 02:34 AM
Response to Reply #7
10. My WAMU is slowly morphing into a crappy Chase card, complete with an impending interest....
Edited on Sun Jan-18-09 02:35 AM by pinniped
rate increase. I have about a month to opt-out.

In that case, I'll likely cancel my WAMU bank account along with it.
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tabatha Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-18-09 08:43 AM
Response to Reply #10
11. I moved a small amount of IRA money out of WAMU
when it matured in October.

Several years before that, I moved my account from WAMU (was Home Savings) to a local bank because I could not stand the changed attitude in service after Home Savings was bought. Glad I did.
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SoCalDem Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-18-09 01:44 AM
Response to Original message
9. Property taxes are skyrocketing as funds dry up...? My guess..
Every empty house means there are probably no property taxes being paid from that address.. so the people who are paying their payments regularly will get hit harder.. :(
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Blue Diadem Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-18-09 09:59 AM
Response to Original message
12. Have him check to see if they received his homeowner's
insurance information. If a bank doesn't receive the information from the homeowners insurance company normally the bank will send out a notice. Sometimes if the homeowner lets it lapse or if there are communication problems between the mortgage company and the insurance company, the bank/mortgage company can take out their own insurance and add that to the customer's payment. I have a relative that worked at a small local bank part-time during college. It was her job to make sure mortgage holders were insured and to contact them if the bank wasn't notified that they have a homeowner's insurance policy. Most were just oversights or miscommunication, but she told me there were a couple time when the bank had to get a policy and that they were pretty pricey. My husband also just told me that we've received a notice after we refinanced our house, from the bank when it was time for our home owner's policy to renew and they said they didn't get the new policy information. He called our insurance agent and she faxed another copy to the mortgage company.

The only other thing that comes to mind is that the bank pays his real estate taxes and homeowners insurance through an escrow account. But if this is the first time he's had an increase in 10 yrs, I doubt that's the reason for the increase and since the amount is so much, it seems too high for an insurance premium increase or for a real estate tax increase.

Your Dad should have received some explanation of why his payment increased. When we bought our first house, we had escrow payments for insurance and taxes and we always received notices of when there was going to be an increase.

My advise is to have your father call Chase and ask for an explanation.

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my3boyz Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-18-09 10:29 AM
Response to Original message
13. We have Chase and ours went up because they said
we had a shortfall in our escrow account. They are giving us til Feb to pay $400 or the payment will go up.
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TwilightGardener Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-18-09 10:33 AM
Response to Original message
14. I have a Chase mortgage too. Our payments have gone up and down slightly
over the years, because of escrow, taxes, etc.
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mrreowwr_kittty Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-18-09 10:34 AM
Response to Original message
15. Property tax increase? Look at his statement and compare it to the last one.
It's probably that or insurance. Far as I know they can't just raise your mortgage if you didn't change the terms of it.
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Peacetrain Donating Member (1000+ posts) Send PM | Profile | Ignore Sun Jan-18-09 10:36 AM
Response to Original message
16. If it is based on interest rates.. it can go up..
If the property taxes in his community increased or the insurance rates increased it will increase the payment. My guess is it might be the insurance rates
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