The guidelines to qualify for a Chase loan modification have been updated for 2013. Homeowners who are struggling and want to apply for a loan mod must pass these new guidelines in order to qualify for assistance. Here are the basics of what the bank is looking for:
- Principal residence, rental property or second homes are now eligible-BUT you must be facing a financial hardship, loss of equity alone is not a valid qualification.
- The program has been extended through December 2013
- Debt ratio guidelines have been expanded-previously set at a strict 31% -they may now consider a range between 22-42%. Debt ratio is a calculation used to determine your current housing expenses, and also to arrive at what your new TARGET payment will be with the loan modification. Not sure of your debt ratio
and want to know what your new modified terms could be? Use the Loan Mod Calculator-a program that will automatically compute your debt ratio, modification terms, income and expense requirements.
- More principal reductions-the lender will not be reimbursed at a higher percentage for every loan mod that features a balance reduction. This should encourage Chase to offer principal reductions on more loan workouts. Homeowners who owe more than their home is worth may qualify for this option-find out if you are a good candidate-use the Loan Mod Calculator to compute the Waterfall method for you. This program will show you if you may be offered a lower loan balance.
- You do NOT have to be delinquent on your mortgage to qualify, BUT you must pass the Imminent Risk of Default guideline. This is a calculation that uses your net income, monthly expenses and assets. Verify that you pass with The Loan Mod Calculator.
Knowing the Chase Loan Modification guidelines for 2013 will help you to apply correctly and greatly increase your shot at approval. Visit MyLoanModificationCenter.com for more free tips and information.