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Chase Customers and Chase Bank Home Loan Modification – The Truth
For a lot of people making ends meet is a challenge right now and they are starting to worry about impending foreclosure. This does not have to happen, however, mortgage loan modifications can help prevent this and give homeowners some time to get their finances in order. Your lender and loan insurer are the determining factors in determining if and how your loan can be modified. This article will focus on the requirements of Chase Bank home loan modifications and how to get one.
Before you begin, you need to know who insures your loan. A lot of people don’t know this since they usually have no reason to. The quickest and easiest way to find out is to call Chase Bank and ask. If you find that Fannie Mae or Freddie Mac insures your loan, you may be a candidate for the President’s $75 Million Homeowner Stability Initiative. This program works with lenders and borrowers to lower monthly mortgage payments to no more than 31% of your monthly income before taxes.
There are, naturally, some requirements. You must own the home you live in, owe no more than $729,750 on your mortgage and must have negotiated your loan before 2009. You must be making payments that exceed 31% of your gross monthly income and you cannot have had your loan modified in the past. If you meet all these requirements, consult with a financial planner to tell you more about it. This government plan helps both lenders and borrowers, so homeowners get better deals through this program than they would when dealing directly with banks.
If it turns out that Fannie Mae or Freddie Mac does not insure your loan, you do not qualify for this government program. There are still alternatives. Chase bank does have its own process and it is worthwhile to investigate their loan modification process, especially before accepting foreclosure. Again, you must own the home you live in, have a mortgage that has never been modified or refinanced and be able to pay a monthly payment of between 31%-40%. The monthly payments may be a little higher since there is not government help as there is in the Homeowner Stability Initiative. If you fill these requirements, Chase will also request a hardship letter, your financial statements, your pay stubs, bank statements and ask to see your tax returns.
Whatever approach you take, either approaching Chase Bank or applying for the Homeowner Stability Initiative, a loan modification is a much better alternative than foreclosure. Your credit score will not be damaged and you can keep your family home.
If you are having trouble paying your mortgage, check out Chase Bank home loan modification and the government initiative program.
Loan Modification Procedures
When you are in a period of extreme financial difficulty, it may be best for you to look into a possible loan modification procedure.
While it is not initially easy to be approved for a loan modification procedure, it may be in your best interests to try to at least obtain some information from your bank. Many banks are more than willing to work with you and your financial needs, especially since they want to ensure that you will continue to make your scheduled monthly payments on your loan.
The first step in the loan modification procedure is approval. In order to be approved for a loan modification, you have to prove that you are currently experiencing a period of extreme financial difficulty. Possible reasons for financial difficulty may include:
Accidental Injury
Unexpected Medical Expenses
Unemployment, Company Lay-Off
Death of family member
General Financial hardship
No matter what the reason is for your financial situation, it is very important that you document your financial problems with paperwork. If necessary, bring copies of your payment receipts, medical receipts, written documentation of your financial situation, bank statements, etc. These documents will aid you greatly in proving to your bank that you are currently unable to make your scheduled monthly payments.
Once the bank has approved your request for a loan modification, there is a period where they may communicate with you on acceptable terms for the modification of your loan. It’s very important that you thoroughly examine any changes that your bank may make to your loan, as it is sometimes common for the negotiated payment amount to be higher than the initial amount.
This may be an attempt from the bank for you to pay off your balance sooner, since you are now regarded as “high-risk” because of your financial situation. It’s very important to let your bank know exactly what you can afford each month, as this will ensure that a beneficial decision is reached for both you and your bank.
In some cases, you may have an existing loan with a company that does not offer loan modification procedures. If this is the case, you may have to either prioritize your other finances around this loan payment, or let the company know that you are no longer able to make the payments. Since most companies prefer to receive their money without the aid of collection agencies, this may help them to negotiate a decision to work with you and your finances.