Know the Guidelines

Homeowners who wish to apply for a Chase Loan Modification and take advantage of the HAMP program, need to learn the very important formula used to determine who will qualify.  This formula has been implemented by the lender in accordance with the HAMP guidelines and is used on every loan mod application.  Here is the debt ratio formula that you need to know before you prepare your paperwork.

HAMP Debt Ratio Calculation Formula:

1. Loan will be modified using a new target payment that equals 31% of the household gross income.
2. Standard methods of modifying will be used to reach the target payment-reduce rate to as low as 2%, extend term to 40 years or forgive/defer some principal balance
3. Take total household gross income and multiply by 31%= total equals new Target Payment
4. Subtract the monthly amount for property taxes, homeowners insurance and any HOA dues.  The remaining amount equals the principal and interest part of the new target payment.
5. If this target payment can be reached using the standard methods of modifying, then you are a good candidate.

A Chase loan modification under HAMP will provide a very affordable mortgage payment and will give you a fresh start with the lender.  Any foreclosure activity will stop, and you will be able to stay in your home under the new loan terms.

The debt ratio calculation is standard for everyone under the government HAMP plan, so if you learn this basic formula and use it to prepare your application you will have a much better chance of approval on your Chase Loan Modification.

Although the formula is fairly simple, if you feel like you would like help you can use a software program that will do all the calculations for you and show you the results immediately.  Just put in your income and debts and you will see what your new target payment could be, and if you pass on the triggers for approval.  But most importantly, you can adjust your figures so that you pass before the lender has a chance to turn you down.

Does all the calculations for you!

Let’s face it, most homeowners are willing to adjust their budgets if it means that they can get a great Chase loan modification and keep their home.  However, it’s hard to know just how much you need to adjust-that’s where the software program can help you avoid mistakes.

Not sure how to qualify for a loan modification?  Loan Mod Quick App software takes the confusion out of preparing your application.  This helpful tool takes the guesswork out of qualifying by figuring your debt ratio, target payment and other important calculations for you.  Why take chances with your application?  Simply input your unique financial information into the Loan Mod Quick App and it calculates it all for you!  You can save hours of time and avoid costly mistakes.  The Complete Loan Modification Guide kit is the best selling do-it-yourself system that includes the software, handbook, forms and much more. Visit myloanmodificationcenter.com and order today-Immediate download!