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Chase Home Loan Modification Program

By Edited Jun 6, 2015 0 0

Many Americans are now facing severe financial distress and struggling to keep their home loans current. This is often caused by losing their previously high paying jobs and having to make do with reduced income. Some got a rude wake up call when they cannot continue to make both their monthly mortgage payments and high interest credit card debts with their limited disposable income. You will be relieved to know that there is now an option out of either foreclosure or bankruptcy filing.

The Chase mortgage loan modification program supports the $75 Homeowner Stability Initiative announced by President Obama in the first quarter of 2009. It is important for all delinquent home loan borrowers to take attention on how to use this home loan modification program to improve their financial situation before it is too late to save your homes from the bank foreclosure process.

Actually, home loan modification plans from Chase, Washington Mutual etc exists way before the Homeowner Stability Initiative was brought into force. The only difference is that now the mortgage lenders and insurers have received substantial incentives to modify the existing home mortgages to make them more affordable and in line with the income reduction experienced by many families. Rather than ending up with a lot of bad debts and foreclosed homes that cannot be sold on the market for good prices, it is better to help the homeowners continue to make smaller mortgage installments to keep their houses and general social stability.

This means that you have previously been rejected from a home loan modification, you re likely to be approved at Chase this time round if you try again. The main feature of this Chase home loan modification is that your new mortgage installment will be lower than 33% of your monthly earnings. Correspondingly, the main critic of this initiative is that only home loans that are insured by Fannie Mae or Freddie Mac will likely qualify for the loan modification. Even though this two mortgage insurers account for a large percentage of the market, there are still some homeowners that were being left out. However, you should still contact Chase and try, since you have nothing left to lose anyway.

The other secondary eligibility checks are as follows. You can only apply for houses whereby you are the primary occupant. That means you are not likely to be approved if you are having problems paying your home loan installment on your second property, which was bought for the intention of earning rental income. Since you are not going to be homeless should that house be subjected to foreclosure, neither Chase nor the government is not going waste their resources on you.

The home loan to be modified must be in force before 2009 and must not exceed $729,750. Your current home loan installment must also exceed 33% of your earnings before tax. This is to be understood since it is assumed that installments below 33% of your earnings are considered affordable and should not cause any repayment distress.

If all of the above applies to you, then most likely you do need that Chase home loan modification to help you improve your family's quality of life. You are almost guaranteed for an approval as well, so do not waste any more time procrastinating over to decision to modify your mortgage or not.

For homeowners whose mortgage insurers are not Fannie Mae or Freddie Mac, Chase offers its own house loan modification plans that are not funded by the Administration. It does have more stringent requirements and the extent of installment reduction is lesser, namely between 33% and 40% of your monthly income. That means you need to pay out of pocket more for your mortgage and lesser on your other personal debts. Furthermore, you need to show proof that you can afford to pay that amount by submitting your income statements and all debt information.

It may mean that you live to forgo your previous lavish lifestyles but at least you can manage to continue provide a safe shelter for your family. As long as you preserve with the new reduced home loan installments after the Chase modification, your personal FICA/FICO scores will remain undamaged and you do not need to declare bankruptcy as well.

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