If you have been waiting for help with a Chase loan modification you may finally get the chance you need. The Treasury Department has signed an agreement with the bank authorizing them to begin offering the Home Affordable loan modification plan to its qualified borrowers. Under this program, Chase will be eligible to receive incentive payments for each completed loan workout. Of course, this is a big incentive for the bank to offer this aggressive program to homeowners.
A Chase loan modification using the federal plan means that your mortgage payment could be lowered using several standardized options. These include:
- First, interest rate reduced to as low as 2%
- Second, loan term extended to 40 years
- Finally, principal forbearance
The goal is to reach a new modified payment that equals no more than 31% of your gross monthly income. This payment includes the amounts for taxes, insurance and homeowners dues if applicable. The federal plan will subsidize part of the loss incurred by Chase due to the new loan terms, as well as an upfront payment for each workout that qualifies.
How do you apply for the Chase loan modification using Home Affordable? You can visit the lenders website to start, but be aware that not all borrowers will qualify. Make sure that you understand what is required for approval before you send in your paperwork. Successful homeowners will be able to prepare their loan modification applications correctly so that they have the best chance of meeting the approval guidelines. Take the time to learn and prepare so you do not miss out on this opportunity to stay in your home.