If you have a mortgage with Chase and are having difficulty making your monthly payments, or have already defaulted, a loan modification may be right for you.
A loan modification can bring your monthly payment down to an affordable portion of your income, help you avoid foreclosure, and return your loan to normal servicing.
Unless you have the cash to reinstate your mortgage after falling behind, a modifying your loan is probably the only solution that allows you to keep your home.
A loan modification involves making a permanent change to one or more of the terms of a loan. The interest rate on a loan can be lowered, the term length extended, and principal can be forgiven or restructured to bring the payment down. Unlike a refinance, which can also bring a mortgage payment down, there are no closing costs associated with getting a loan modification.
What's Good About Loan Modifications With Chase?
Chase is one of the “big four” banks along with Bank of America, Citigroup, and Wells Fargo. They're involved in a lot of mortgages in different ways. Chase could be your mortgage lender, your servicer, or the investor in your loan.
As a recipient of bailout money from the government, Chase is required to evaluate eligible homeowners for the government's modification program, HAMP (Home Affordable Modification Program).
The basic eligibility requirements for HAMP modifications are that:
- You are having difficulty making your mortgage payments due to a valid hardship.
- You have defaulted or are in danger of falling behind on your mortgage.
- You got your mortgage on or before January 1, 2009.
- Your property is not been condemned.
- You owe up to $729,750 on your primary residence.
If you're not eligible for HAMP, Chase will review you for their in-house modification program, CHAMP (Chase Home Modification Program). Since CHAMP is not a government program, Chase can make up its own requirements for it. They are similar to HAMP requirements, and can be found in full detail here.
Difficulties With Chase Loan Modifications
Two of the most common complaints we hear from homeowners about applying for a loan mod, with Chase and every other bank, are that they're denied and have to send in the same documents numerous times.
A loan modification application requires about as much paperwork as is required to originate a mortgage loan. It's a real hassle, but just submitting it once often isn't enough. While the application is under review some documents can expire the newest versions have to be submitted again. It can make for a lot of work, and homeowners tell us it's enough to drive them to drink.
After everything is submitted and the application is reviewed, it's often denied. It' can be a challenge to prove that you have enough income to afford your home under the modified terms.
To have the best chance of getting your application approved, consider working with an experienced professional, such as a foreclosure defense attorney. They can help you understand the process and remove some of the uncertainty and frustration associated with it. You can also have the peace of mind of knowing that you're not getting just any deal, but the best deal.
If you're considering getting a loan modification, you should take action as soon as possible. HAMP is expiring December 31, 2016, so there will be one less option in 2017 and beyond. And, with interest rates at historic lows, there's never been a better time to try.
We've helped many of our Chase clients get a loan modification. You can see some of our Chase case results here.