Chase Loan Modification

Building or buying a house by way of a mortgage is one of the best ways to achieve your means. It allows you to become a homeowner without having all the money you need in a lump sum. This is an especially beneficial service since home ownership is an expensive affair. If we all had to have a lump sum in order to get our houses, some of us would be living in unsavory environments.

However, mortgaging is not all a bed of roses by any stretch of the imagination. The future is not cast in stone, and if a person who has a mortgage gets a stroke of bad luck, such as losing a job or any other source of income, they could be foreclosed and rendered homeless if they are unable to keep up with paying the mortgage premiums. For people who have a mortgage through Chase Bank, one way of avoiding this would be to get a Chase loan modification.

A short description of the Chase loan modification program
The Chase loan modification program is a program instituted by the government to help modify mortgages to make it easier for homeowners to make payments on their properties. This is in light of the recent economic downturn, which has rendered many people unable to pay their premiums. This makes them liable to foreclosure. The loan modification involves changing some of the terms of the mortgage, such as amount of premiums to be paid and time to pay back the loan. Though it signifies a ray of hope for people who have been hit hard by the recession, it has to be said from the outset that loan modification is subject to approval and some people may not qualify.

Features of the Chase loan modification program
One of the best features of the Chase loan modification program is the low interest rate. The interest rate on the mortgages in this program is reduced to 2%, and this is fixed for 5 years. This means less worry about interest rates changing and increasing in future. After the first 5 years, the rate is then increased by 1% a year to a maximum of 5% for the rest of the loan time. The program also includes a longer loan repayment period. It sometimes also facilitates a reduction of the loan balance to ensure payment can be made for the house. However, the downside to it is that it can be difficult to qualify for the loan modification. This is because eligibility is determined by strict guidelines set forth by the treasury department.

Approval requirements
In order to be eligible for the Chase loan modification program, the first important thing that has to be shown by any prospective recipient is that they are indeed in dire financial straits. Issues such as using a credit card to pay for ordinary expenses, loss of a source of income, using up savings and even proof of increased expenses are all acceptable reasons. Once this is done, there is a lot of paperwork involved to provide a comprehensive financial statement. This should indicate all monthly income versus expenditure. This statement is used to determine if the debt to asset ratio fits the requirements of the program, so it should be as detailed as possible. To this end, always include proof of income, such as bank statements and tax return forms.

Most other eligibility requirements are very straightforward. For one, the home you are trying to save must be your primary residence, and your first mortgage should be less than around $730,000. Apart from that, your payment on the first mortgage should be more than around 31% of your gross income. The current mortgage should also have been secured before January 1 2009.

Increase your chances of getting into the program
Whether or not you get into the Chase loan modification program largely depends on how well the initial application is completed. This is because your eligibility will be determined by the application, so it’s best to be thorough. It would be advisable to submit all the required documents that are needed, and fight the urge to cheat. If unsure about how to complete the application and how to write the statements, it might be a good idea to use software designed to do this for you, or get a financial specialist to do it.

At the end of the day, the key to getting into the program (after ensuring that you are legible) is to make sure that you are organized and that all the information you provide is clear and concise. Withholding any information that is critical to your financial status also reduces the chances of acceptance to zero, so always be truthful. You should also expect the process to be long and so try not to get frustrated along the way.