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Been Denied A Chase Loan Modification
If you have tried to get a Chase loan modification and have been denied, you may still have options.
The problem with homeowners trying to get a loan modification approved themselves is that they do not understand the guidelines like a professional does. Many homeowners believe that you should lie to you lender and tell them that you make hardly any money or that you make more money than you do. This is not the case at all. Your lender wants to see a specific debt to income ratio, which normally shows that you would be able to make your monthly payments if they were lowered.
Makes sense, right? Why would your lender take all the man hours to modify your loan if they knew you were just going to end up defaulting on it anyways? That is why they have these specific guidelines set up.
One loan modification company is having great success with the “Obama Mortgage Plan”, otherwise known as the HAM program. While there are many articles on the internet doubting the effectiveness of this program, they are having great success. It all comes down to getting the files properly prepared so that you are within your lenders guidelines.
If you get qualified for the Obama program, you will be in great situation to lower your monthly mortgage payments. With this program you lender will do a few things to lower your monthly payment to 31% of you net pre tax monthly income. Here’s what they do:
1. Lower your interest rate to as low as 2%. If this does not lower your payment enough, they move to step 2.
2. Extend your mortgage terms. If you have a 30 year loan, they will extend it to 40 years to further lower your payment. If this is still not within the 31% guidelines, they move on to step 3.
3. Reduce your principal. While this is pretty rare, it does happen. Though usually, lowering your interest rate and extending your terms will drop your mortgage payments pretty low.
With home prices falling so low, many people are concerned about getting a principal reduction. They should be concerned with a payment reduction! I know it stinks that your house is worth less than you owe on it, but right now you should just focus on lowering your payments to something you can afford so you can still live in it! A 2% interest rate is going to cut your monthly payments just like cutting your balance would anyways, you will just have to stick it out until the markey comes back up…whenever that will be. I’m in the same boat, my house is negative $140,000 and I put 20% down on it in ’05 and never refi’d at all.
For a great company that can help get you qualified for a Chase loan modification, just visit the links below.
Increase Credit Scores Rating
Credit scores ratings always starts with Credit repair. It is something that takes time and patience to accomplish, especially if the damage was made recently. There are many ways to increase your credit score and boost your ability to apply for future financial aid, but these can be tedious and time consuming.
To start the repair, you will need a copy of the reports from all three consumer reporting agencies:TransUnion, Equifax, and Experian. Compare all the reports and make sure that all the information they contain are accurate. Some creditors only report to one agency, which can cause discrepancies. Also, there have been instances where closed accounts are still being reported open and paid off debts are still showing as unpaid. Make sure to correct these errors right away by calling the consumer reporting agencies and explaining the situation. You may also need to contact the creditors who made the report to send an update to clear up the inaccuracies.
The next step is to get rid of too much debt. Make sure to get rid of all most of your unsecured debt either by paying it off or consolidating it. Too much debt can be seen as a negative and is a factor when it comes to your credit file . Close out all the extra charge cards and store cards and only keep two – ideally a Visa and a Mastercard, to make sure that you will have access to funds when you need it. Keep the accounts that have been open the longest because this will have a positive impact on your credit score. Donít close out all the other accounts at the same time. Try to close only one or two accounts every six months to give your score time to adjust.
The way to confirm the repair is to ensure that you do not have late payments or incur an overdraft on any of your debts. Financial institutions report these to the consumer reporting agencies , who in turn put it in your credit report. There is a 30 day, 60 day, and 90 day category on missed payments, and having one of this can cause your score to take a very large drop .
Finally, make sure that your credit report information is being accurately reported. Your FICO score is partly based on the amount of debt you have versus the amount of credit you have available. Some charge cards report your highest balance instead of your limit, so if the highest balance youíve incurred is $400 out of a $500 charge card and you charge $450 the next month, it may look like you went over the limit. Make sure never to charge more than 30 percent of your limit to show that you are not spending more than you need to .
Credit report repair is a long term process, especially since some of the negative feedback will take 7 to 10 years to fall off. One thing that you need to remember is not to borrow more than you can afford to pay back and to make sure that your accounts are all up to date. After all, even though the repair can take years, it will still benefit you in the long run.