Chase Loan Modification with Principal Reduction-Why Homeowners Qualify

By
Real Estate Agent with Newman Realty

Chase is approved by the Treasury Department to offer the Home Affordable Modification Plan.  One provision of this federally subsidized program allows for part of a loan's principal balance to be forgiven.  A Chase loan modification that features a reduction in the principal balance is offered to some homeowners-but who qualifies for this very important feature and why?  The $75 billion dollars set aside to help homeowners find loan workout solutions serves to encourage Countrywide and other banks to offer very aggressive options.  Homeowners who are struggling with unaffordable mortgage payments and now owe more than their home is worth need to know if they qualify for this loan modification option.  Here is some helpful information about who could qualify.

Chase has signed an agreement with the Treasury Department in which they:

  1. Agree to standard modification terms in return for incentive payments
  2. Reduction in interest rates to as low as 2%
  3. Principal reductions for certain loans
  4. Extend loan terms to 40 years
  5. Waive late fees, administration charges, bring the loan current
  6. Perform a Net Price Value scenario to determine principal reduction option-homes that have realized signifcant loss of value may qualify
  7. Reach out to at risk homeowners to offer a loan workout
Interested homeowners must be basic eligibility requirements before they will be allowed to submit a loan modification application.   This questionnaire asks:
  1. Do you live in the home as your primary residence?
  2. Was your loan originated before January 1, 2009?
  3. Are you facing a financial hardship situation?
  4. Is your current payment more than 31% of your gross monthly income?

The bank will be paid up to 12 cents on the dollar to retire or forgive portions of a borrowers principal balance as an incentive from the Treasury Department.  Homeowners stuck with bad mortgage and have lost equity may be good candidates for a Chase loan modification featuring principal reduction.  Borrowers who owe more than their home is currently worth may qualify for a reduction in the amount they owe the bank, as well as a lower interest rate to arrive a new affordable mortgage payment.  Each case is reviewed  individually, and the borrower still must meet certain criteria.  Every homeowner stuck in an unaffordable Chase loan needs to take the time to learn how they could qualify for a loan modification to lower their mortgage payment.

APPLICATION TIP:  Do NOT contact the lender or give them any of your information until you have prepared your financial statement-you need to make sure that you fit the approval guidelines and be able to make any adjustments to your budget BEFORE you give the bank your information.  You can follow the easy, step-by-step directions found in Chapter 3 of the best selling handbook for homeowners, The Complete Loan Modification Guide.  Make sure you complete your own financial statement correctly-this is critical if you hope to qualify.  The guidelines are standard for everyone-help is available if you know how to get it.  Don't miss out on your chance to get help with this federal Stimulus Plan.

You can get the help you need to apply and qualify for a Chase loan modification by ordering the best selling handbook for homeowners, The Complete Loan Modification Guide. This is a low cost, easy to read, home edition loan mod kit that will provide you with everything you need to prepare a professional and acceptable loan modification application. You are provided with all of the necessary forms and given detailed directions on how to complete them properly. The Complete Loan Modification Guide will take you step by step through calculating your debt ratio, completing the financial statements, writing your hardship letter and then putting it all together to submit to your lender. Learn how to qualify for the Obama Federal loan modification plan. Need help completing your loan modification forms?  Find out about our Customer Assist program-you work one-on-one with your very own expert to make sure your application is completed correctly. Get started today on the path to secure home ownership, order The Complete Loan Modification Guide, your loan mod in a box. For more information about mortgage loan modification, please visit us at: http://www.myloanmodificationcenter.com

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Topic:
Lending / Financial
Location:
Florida
Tags:
chase
loan modification
forms
application
approval
principal reduction
federal loan modification
stimulus

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Anonymous
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Sheryl Knoles

Hi, homeowners! My name is Sheryl Knoles. I am a loan modification specialist with Fidelity National Legal Services. I am also an assistant supervisor, and a processor as well. Our company does EXCELLENT work with a 100% success rate and I myself have gotten an interest rate at a 2% fixed for 30 years from a 22% adjustable. My company charges $1,000.00 for every 100,000 owed on the balance. We have a good team, excellent competition, and wonderful results as well as completed files we can show you what they had before, to what I got them down to. If anyone has EVER told you that you don't qualify for a loan modification, here are the requirements:

 

1. Owe more than what your house is worth (new Obama program)

2. High fixed or ANY adjustable (option ARM) interest rate (Bushs' program)

3. Behind on your payments or ABOUT TO BECOME BEHIND

4. Hardship

 

If you are interested, and would like to know more about these 2 programs I qualify you for, please give me a call at my personal number: (951) 534-0015 or at the office at: (909) 483-6736 ext: 346

Sep 14, 2009 10:36 PM #1
Rainer
73,957
Susan V. Gregory
Newman Realty - Dana Point, CA
Helping You Live Your Ideal Lifestyle

I am an advocate for homeowners-not for loan mod companies overcharging homeowners for something they can easily do themselves.  I have dozens of examples of loan mods successfully done by borrowers working directly with their banks for free.  Too many vulnerable homeowners have been ripped off by loan mod companies and attorneys who took their last dime and lost their home anyway.

Learn, prepare and become a proactive homeowner-you can successfully modify your own loan with just a general knowledge of the basics.  Your bank wants to work with you directly-not a third party-don't waste your hard earned money on empty promises.

Susan Gregory

Sep 15, 2009 10:12 AM #2
Anonymous
Anonymous
Susan Gregory

Please do not post your cheesy, made up stories on my blog so that you can pitch a loan modification company!

I do not advocate that homeowners pay anyone for a loan modification.  The Treasury Dept, HUD, Attorney General and PRes. Obama all warn homeowners against paying any fees for a loan modification-this is a free process that homeowners can do themselves!

Take just a couple of hours to learn the basics and you can successfully work directly with your lender.  Over 650,000 homeowners have already received a loan modification-you can too.  Get informed, be persistent and you will have a better chance than if you hire someone!

Susan Gregory

The Complete Loan Modification Guide kit

Nov 23, 2009 08:24 AM #3
Anonymous
Anonymous
Lori Shepard

All forms and information you need are available for FREE on makinghomeaffordable.gov. Help is also available for FREE from organizations listed on the website (Find a Counselor).

This government website also tells you:

"Beware of anyone who asks you to pay a fee in exchange for a counseling service or modification of a delinquent loan."

Jan 08, 2010 07:37 AM #4
Anonymous
Anonymous
Jennifer

I agree with Susan. I am working with my bank, no hired help, to get a loan modification. LOoks like it will turn out well. (2% interest rate) I did all of the work myself. It does take a lot of TIME, PATIENCE, PERSISTENCE (key) and READING. I read up on all I can. The bank kept telling me to wait and someone would call me. Best piece of advice, DONT wait. Be more aggressive. Demand to speak with a modification specialist, but make sure you submit all your information.

DON'T PAY ANYONE FOR SOMETHING YOU CAN DO YOURSELF!!!!!

Jan 26, 2010 12:03 PM #5
Anonymous
Anonymous
Ron

Hello:

If you are falling behind in payment, consult with Jeff kaut and Associates. Visit http://www.folsomreolisting.com/.

Ron

Feb 05, 2010 10:54 AM #6
Rainer
27,181
Cheryl Hale
Boca Raton Mortgage Broker - Boca Raton, FL
Mortgage Lady - South Florida

Susan is correct.  You do not need to pay anyone to get a loan modification.  It does take time and patience.  And you must be organized with your financial information that you need to present to your lender.  Most lenders follow the Home Affordable Modification guidelines, so the process is NOT a negotiation.  Your terms are based upon your gross monthly income.

Do not believe any of the loan modification companies that guarantee you can get a better deal if you pay them to "negotiate" for you.

Feb 13, 2010 12:01 PM #7
Anonymous
Anonymous
Vic

Hi Ms. Gregory,
I am not behind but hired a Loan Mod firm (www.CreditModAmerica.com) for my big mortgage (~$580K) on my now-much-depreciated house (<$400K). They seemed to be on the case and I did recieve letters from Chase in that regard. The firm, I just found out, has vanished. The file is with Chase. It was closed/denied as, the firm was not sending needed docs lately! Chase is reopening it at my request.  When I called they said now I will have to talk to some one in their Loss Mitigation Dept but I am scared to call them without proper prep. Do you think your program can still help me at this stage (as everything they need to start the process is already with them)?
Thanks,
Vic

Apr 10, 2010 01:08 PM #8
Anonymous
Anonymous
Susan Gregory

I am sorry to hear that you were ripped off-unfortunately this is not an isolated incidence.  You can successfully modify your loan by working directly with your lender-but your are right to be hesitant about calling them before you are prepared.

The most important thing you can do is to spend a couple of hours learning the basics of the federal loan modification program and work on your application before you disclose your financial information to your bank.  There is an actual mathematical formula that is used to determine who will qualify for HAMP-you can use this very same formula to help you fine tune your own financial statement so that you have the best chance of approval.

Even though your information was already submitted by that fraudulent company, you can re-submit your updated and accurate information yourself.  Just tell Chase what happened with that company and they will be sympathetic to your circumstances.  However, it is up to you to prepare an accurate and acceptable loan modification application-so make certain you do your homework.

If you are not sure how to figure your debt ratio, target payment or other important calculations, you can use a software program designed to help homeowners-it actually mimics the federal guidelines and will show you immediately if you need to make any adjustments to your numbers on your financial statement.  This will help you avoid mistakes.

Visit www.myloanmodificationcenter.com for more information and read hundreds of pages of information for FREE on the blog page.

Good luck to you,

Susan Gregory

Apr 12, 2010 11:35 AM #9
Anonymous
Anonymous
Vic

Hi Ms. Gregory,

Thanks for your prompt response. Ref to my querry above, in my situation how badly a Loan Mod will affect my Credit and for how long?

Thanks.

Apr 13, 2010 12:35 AM #10
Anonymous
Anonymous
James

Vic & Susan - I spoke with Chase in regard to the modification and learned from a specialist that they want you to pay the modified rate (~31%) for ~3-4 months before the adjusted rate will go into affect and be reported to the credit reporting agencies.  This would then show up as a partial payment on your credit report.  The specialist said it would  "self correct" on your report but it isn't clear as to the implications of this mark on your credit report (point/opportunity-wise).  Susan can you , or someone else familiar with the market, please advise as to likely impact.  Currently we have very good credit and do not want to jeopardize a mark on our report.

May 22, 2010 12:23 AM #11
Anonymous
Anonymous
Travis

When was your guide last updated? does it include info on HAMP, HAFA, HARP, UP, 2MP, and PRA? thank you.

Nov 16, 2010 05:49 PM #12
Anonymous
Anonymous
Terry Tran

Hi...Susan...i'm one of the owner in Oakland, CA....I got modify with Chase last yr...the first 5yr @ 2% and 3%, 4% 5% after that but the problem that i'm having is my principle...i current 50% LESS than what i owe...i owe chase $350,000 but my resident worth less than $200,ooo...i wonder if it's possible to do a principle reduction as this situation w/ the loan mod. already....let me know what are percentage or sonario...Thanks Terry

May 19, 2011 02:44 PM #13
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Susan V. Gregory

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