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 #9
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

April 12, 2010 11:35 AM
Anonymous #10
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.

April 13, 2010 12:35 AM
Anonymous #11
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
Anonymous #12
Anonymous
Travis

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

November 16, 2010 05:49 PM
Anonymous #13
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
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Rainmaker
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Susan V. Gregory

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