If you are one of an increasing number of people facing extreme financial difficulties and struggling to make your monthly mortgage payments, you may be relieved to hear that foreclosure is not your only option. A loan modification plan is a viable possibility, depending on your lender and loan insurer, to save your home. Below you will find important information ascertaining to the Chase Bank Home Loan modification scheme.
In March 2009, the President brought into effect the Homeowner Stability Initiative, a scheme that offers lenders and borrowers alike incentives to modify existing mortgages in such a way that the monthly payment does not exceed 30% of the gross monthly income. Your eligibility for this scheme will depend largely on who insures your home loan. Only loans insured by Freddie Mac or Fannie Mae qualify for this scheme. If you are not sure who insures your loan, contact Chase and simply ask them.
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As with any financial scheme, there are regulations in place. Only loans no homes in which the owner is occupying the property will be eligible. In addition, the mortgage must have been taken out before 2009 and must currently exceed, under existing terms, 31% of your total income before tax. No loan will be eligible for modification more than once under this loan. Finally, your unpaid principal must not be great than 9750.
This loan modification scheme is a viable means for homeowners to greatly improve their financial situations. If you meet all the above criteria, your next step should be to contact a trained financial advisor. These schemes often provide better rates to borrowers than banks, as the lenders are being assisted by the President's scheme incentives.
If you find out from Chase that your loan is not insured by the above named insurers, do not worry as they also have their own loan modification plan in place, which is well worth researching before resorting to foreclosure. Much like the President's loan modification plan, with Chase's own, the home in question must be occupied by the owner. However for their own plan, Chase also stipulate that the mortgage in question must be your first mortgage and must not have, under any circumstances, already been refinanced in any way. You must be able to demonstrate your ability to afford between 31 and 40% of your gross monthly income by way of a mortgage payment. This is higher than the government set rate of 41% as this scheme is entirely independent of the President's. Once you have confirmed that you fit the above criteria, you will then be required to supply Chase with a number of financial documents including tax returns, statements of earnings and also a hardship letter, detailing the reasons for your financial problems.
Whichever method of loan modification you opt for, for those who quality, modifying your loan in this way is substantially more beneficial than a foreclosure. Not only will this prevent you from losing your home but it will also leave your credit rating undamaged.
Chase Bank Home Loan Modifications - Facts For the Consumer