Real Estate Blog

Chase Loan Modification with Principal Reduction-Why Homeowners Qualify

February 23rd, 2010 11:22 PM by Sherry Lee

Chase is approved by the Treasury Department to offer the Home Affordable Modification Plan.  One provision of this federally subsidized program allows for part of a loan's principal balance to be forgiven.  A Chase loan modification that features a reduction in the principal balance is offered to some homeowners-but who qualifies for this very important feature and why?  The $75 billion dollars set aside to help homeowners find loan workout solutions serves to encourage Countrywide and other banks to offer very aggressive options.  Homeowners who are struggling with unaffordable mortgage payments and now owe more than their home is worth need to know if they qualify for this loan modification option.  Here is some helpful information about who could qualify.

Chase has signed an agreement with the Treasury Department in which they:

  1. Agree to standard modification terms in return for incentive payments
  2. Reduction in interest rates to as low as 2%
  3. Principal reductions for certain loans
  4. Extend loan terms to 40 years
  5. Waive late fees, administration charges, bring the loan current
  6. Perform a Net Price Value scenario to determine principal reduction option-homes that have realized signifcant loss of value may qualify
  7. Reach out to at risk homeowners to offer a loan workout
Interested homeowners must be basic eligibility requirements before they will be allowed to submit a loan modification application.   This questionnaire asks:
  1. Do you live in the home as your primary residence?
  2. Was your loan originated before January 1, 2009?
  3. Are you facing a financial hardship situation?
  4. Is your current payment more than 31% of your gross monthly income?
Posted in:General
Posted by Sherry Lee on February 23rd, 2010 11:22 PM

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