What Customers Should Know About Chase Bank Home Loan Modification

by: Lindsy Emery

Are you finding it harder and harder each month to make your mortgage payments? Are you worried about losing your house through foreclosure? There is an answer, your loan insurance company in conjunction with you lender determine when and if you can begin to seek a loan modification. A Chase Bank Home Loan Modification may be just what you need.

Before starting any process, you must find out who insures your loan. Lots of homeowners don't know who this is, since they have never needed to know this. You can simply call Chase Bank to find out. If your insurer is Fannie Mae or Freddie Mac, you probably qualify for a government initiative, the President's $75 Million Homeowner Stability Initiative. This program, which works with borrowers and lenders, will reduce your mortgage payment to just 31% of your monthly before tax income.

There are, of course, some conditions:
* You must be an owner-occupant
* Your debt must be no higher than $729,750
* Your mortgage must be initiated prior to 2009
* You have to be paying more than 31% of your gross income
* Your loan cannot have been modified before

If you need some help getting back on your feet financially and you think you might be eligible, consult with a financial counsellor. This President's plan was initiated to help both borrowers and lenders get financial relief. These loan modifications will give borrowers a better rate than the one they are getting through their bank.

If you loan is not insured through Fannie Mae or Freddie Mac, you still have alternatives. Chase Bank offers its own loan modifications. Before accepting foreclosure, investigate this option. Again there are conditions similar to the government program. The only difference is there is no cap on the debt left on your mortgage and your payments may be has high as 40% of your gross income. The monthly payments will be higher since there is no government financing. If you qualify, Chase will request you send a complete application package that includes your tax returns, pay stubs, bank statement and a financial statement along with a hardship letter.

Either way, through the government program or through Chase bank, a loan modification is a much better alternative than a foreclosure since you will be able to keep your house and not damage your credit rating.

Should you be struggling to pay your mortgage, see if you are eligible for the government or Chase Bank home loan modification program.