Chase Bank Home Loan Modification for Chase Customers

Most people trying desperately just to make ends meet are now wondering if they have any other alternatives to foreclosure. Luckily, mortgage loan modification can help stop foreclosure in its tracks and get homeowners back on their feet. Your lender and your loan's insurer make a difference in how and when you're able to modify your loan, so look into requirements for Chase Bank home loan modification policies and processes in this article.

The first thing you need to do is find out who insures your loan. Many people have no idea because they have never needed to know before. The easiest way is to call Chase and request the information. If your loan is insured by either Fannie Mae or Freddie Mac, then you are probably eligible to participate in the President's $75 Homeowner Stability Initiative that works with lenders and borrowers to reduce monthly payments to 31% of gross monthly income.

Of course there are a few stipulations, you must be the owner and occupant of the home, and you loan must have less than $729,750 in unpaid principal and originate before 2009. Your loan must also exceed 31% of your income, and each loan is only eligible for one modification under this plan. It is, however, highly beneficial and if you think you qualify then you should talk to a financial counselor about it. This government plan gives incentive payments both to homeowners and to lenders to facilitate the process, so homeowners get better deals with loan modifications through this government program than by going straight through their bank.

If your loan is not a Fannie Mae or Freddie Mac loan, however, you are not eligible for refinance under this new government program. But don't despair. Chase bank has its own loan modification process and you should certainly look into it before resigning to foreclosure. Requirements include being the owner-occupant of the home, holding a first mortgage (never before modified or refinanced), and being able to afford monthly payments between 31% and 40% of gross monthly income. Naturally this is higher than the government rates because these types of loan modifications are not funded by the government Homeowner Stability Initiative. If you meet the above requirements, Chase will ask for a hardship package containing your hardship letter, financial statement, pay stubs, bank statements, and tax returns.

No matter what avenue you go through - Chase or the government - modifying your loan is usually a much better option than foreclosure. It preserves your credit score and allows you to stay in your home.