Dear John: My wife and I have been in a five-year nightmare, and our home is on the line.
We have been fighting a Goliath (Chase Bank) and we are scared at what is at stake.
We have indisputable proof (recorded conversations) of four mortgage modifications.
The very first modification states this is a “principal write-down.” It states all the terms and conditions in great detail.
Chase has been playing a game, and we need help.
My wife and I never ask anyone for help.
But maybe this is a godsend.
We live in Belle-Harbor Rockaway Park Area of New York, one of the hardest hit areas of hurricane Sandy.
We helped many people in the area and assisted homeowners with their plight. I do not know what to do and so desperately need help.
If this e-mail finds you, please help us. A.S.
Dear A.S. I will forward this letter to Chase and we’ll see what happens. I’m also putting you in touch with a lawyer who recently helped a reader of mine retain her house after she had trouble with her bank. I’ll mention this lawyer’s name — and do the traditional celebratory music — if we succeed again in your case.
Keep your fingers crossed.
Dear John: I have been reading your articles pretty regularly for five or six years now. I know on occasion that you try to warn readers of potential pitfalls with financial situations. My scenario is that I took out my mortgage nine years ago through a reputable lender.
I had the monthly payment automatically deducted, so in nine years I have never been late.
In the last couple of years I tried twice to refinance in order to take advantage of the stupidly low interest rates. Both times the banks reviewed my applications, credit history and everything else, then basically convinced me and my wife that the loan was approved — pending an appraisal, which I had to pay $500 out of pocket for.
So the first time, the appraisal came back at $340,000, which was in the 80 percent range I needed. But the bank officer misread the application and told me I needed $357,000 due to a home-equity loan.
Recently I retried. No more home-equity loan. Plus Obama and his cronies all said that the housing market is improving, right?
So, once again the loan officer said that he checked comparable prices in my area and the 80 percent number would not be an issue. This is almost two years later. And if you remember, I just got an appraisal for $340,000. So we spent another $500 on an appraisal. Guess what? The house was now appraised at $290K. Screwed again.
Now, I have no problem being turned down for a mortgage, even though I think that it is completely unfair that someone who pays on time should be punished this way just for seeking out a better rate to combat the raised prices of everything else.
But I think it’s pretty scummy that I had to lose $1,000 in appraisal fees so that I could be turned down for the mortgage refi. I’m pretty pissed. C.B.
Dear C.B. I haven’t had a letter complaining about a mortgage in a long time. So I’m running this for old times’ sake.
Appraisals are an art, not a science. You may think a soup can painting is priceless and I may think it’s something for the game room. Figuring out the value of a house is no different.
I suggest you go over the head of the bank dude who is screwing up your refi. I find that people pay more attention to complaints if they know they are being watched by their boss.
Good luck.
Dear John: Why aren’t the poor and middle class given the opportunity to earn tax-free income from city and state bonds by buying them directly from City Hall for $100 to $500? The rich keep the opportunity to buy the bonds for themselves. J.G.
Dear J.G. So, your question is the eternal one: Why are the rich different?
I’m assuming you are over 12 years old, since this column is for teenagers and above and I am checking IDs.
In the first place, the rich are special. Not only in our society but in most others throughout history. So they are given special treatment because of their special-ness.
And if these special people can’t figure out a way to beat taxes, they can hire someone(s) who can show them how.
The rich also give disproportionately to political causes and candidates. So they are special in that way as well. Politicians look after their friends. People like us aren’t their friends.
Let me paraphrase that great poet and songwriter John Fogerty’s “Fortunate Son.”
“Some folks are born made to wave the flag
Ooh, they’re red, white and blue
And when the band plays ‘Hail to the Chief,’” Oh, they point the IRS at you, Lord.
Your parents should have told you the facts of life before now.