Making Homes Affordable: Chase Bank Home Loan Modifications

Posted by The Popular News Today on Tuesday, October 18, 2011

By Jeremy Steinbren


If you are one of an increasing number of people facing extreme financial difficulties and struggling to make your monthly mortgage payments, you may be relieved to hear that foreclosure is not your only option. A loan modification plan is a viable possibility, depending on your lender and loan insurer, to save your home. Below you will find important information ascertaining to the Chase Bank Home Loan modification scheme. In March 2009, the President brought into effect the $75 Homeowner Stability Initiative, a scheme that offers lenders and borrowers alike incentives to modify existing mortgages in such a way that the monthly payment does not exceed 30% of the gross monthly income. Your eligibility for this scheme will depend largely on who insures your home loan. Only loans insured by Freddie Mac or Fannie Mae qualify for this scheme. If you are not sure who insures your loan, contact Chase and simply ask them.

You are experiencing what is termed "Financial Hardship." This means that something has happened in your life, and you didn't have anything to do with it. Your income went down, or your expenses went up! This is one of the major qualifying criteria to obtain a Home Loan Modification.

This federally funded program is part of the 2009 Stimulus Package, and it is intended to help people just like you. Banks are given financial rewards for redoing existing mortgages for homeowners who meet this and some other qualifications.

The modified loans can have lower interest rates, longer loan terms, and even reduced principal amounts in order to get a house payment that is less than 33% of the homeowner's gross monthly income. This program also pays a homeowner $1,000 per year toward the principal of the loan up to five years for paying their payment on time.

Another important part of the guideline of FHA financing is that it involves the evaluation that you acquire on house that you want to purchase. The seller should inform you about any type of loan price cut on the home, deposit assistance if needed, builder commissions if needed, financial gifts, loan reduction points and other forms of closing costs support as the FHA loan requirements are there to give aid to the buyer to invest at least a less amount of money especially if there are others resources that could be of great help. The FHA financing will search for that resources and facilitate the buyer in benefiting from it.




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