Michael Petrone asked:




Homeowners may need to get a more affordable mortgage and Chase can help them. Mortgage Refinancing and modification are now easier than ever, even through Chase, due to President Obama’s “Making Home Affordable” plan. This is a $75 billion dollar plan which will help homeowners save money, avoid foreclosure, and stay in their home. Here is how it works, and how to use it with Chase:

Right now, refinancing or home loan modification is easier and more beneficial for a homeowner than it has ever been before. Chase has mortgage professionals and locations across the country dedicated to helping homeowners. Foreclosures, mortgage defaults, and financial hardships are all problems that can be solved by using the Obama stimulus plan with Chase. Even with Chases reputation and excellent customer service, a homeowner should do their own research prior to applying for a home loan modification or refinancing.

When you finally do apply with Chase, be sure to not quickly throw an application together and hope for the best. The “Making Home Affordable” plan through Chase is only going to be available to homeowners who meet certain requirements. The key to getting approved and the best deal possible when refinancing, make sure to learn these requirements, and apply them to your life. This is the best way to ensure you are getting the best deal, and will be approved, when refinancing or getting a home loan modification.

Homeowners right now should look into refinancing or mortgage modification with Chase. It has never been easier to save hundreds of dollars per month simply by calling them and asking about President Obama’s mortgage stimulus plan. Odds are you will be approved and start saving hundreds next month.

Samuel

Lindsy Emery asked:




When you’re in financial distress and you own a home, it can be a scary time. Will you lose it all? Will your home get repossessed by the bank? At a time like this, you may sit down to review your options but get bogged down in the choices you have. How is home loan modification different than mortgage refinancing? Which is right for you?

First off, relax. There are lots of qualified financial counselors, information from your bank, and free online resources like this website to help you get informed. Nobody expects you to know everything right away, and it’s not really as complicated as you might think.

Home Loan Modification vs. Mortgage Refinancing, Are They The Same Thing?

While they are not the same thing, modification and refinancing are both methods for reshuffling your mortgage payments and handling them in a new way. Homeowners turn to each of them, but usually in different times and under different circumstances.

Most homeowners are more familiar with loan refinancing. In a refinance, you take out a new mortgage loan (with more favorable terms) and use it to pay off your old one. People generally refinance when they’ve built up some equity in their homes and they want to take advantage of better terms, like a lower interest rate.

When you get a modification, you’re not taking out a new loan. A modification adjusts the terms of your original mortgage in a variety of ways. The most common loan mods include:

1. extending the loan term

2. decreasing the interest rate

3. forgiving principal (in rare cases)

The goal is to end up with a lower monthly payment that you can afford. Your bank sees regular monthly payments coming in again, and you get to keep your house.

Is Refinancing or Modification Right for You?

A number of factors determine whether you should refinance or apply for a modification, and your professional financial counselor is best equipped to help you decide which is right for you.

If you have substantial equity in your home and it hasn’t depreciated more than 10% since you first bought it, you may be a good candidate for refinancing. Lenders usually require an upfront payment of “points,” where each point equals 1% of the loan and the more points, the lower the new interest rate. 20% equity is usually a good number for refinancing.

Unfortunately, many lenders won’t let you refinance if your home isn’t worth at least 90% of your current loan’s vale. Plummeting house prices have caused many people to go underwater on their mortgages, making refinancing unrealistic for many homeowners.

If you’ve had some catastrophic event in your family (such as an unemployment, death, divorce, or medical disaster) that has made it impossible to meet your monthly mortgage payment, you might be a good candidate for loan modification. If your monthly payment (including principal, interest, taxes, and insurance) totals more than 35% to 45% of your gross monthly income, you could also be a good candidate for loan modification. 

Carrie

Malcolm Glazer asked:




A mortgage home loan modification is to help those individuals and families who are having trouble making their monthly mortgage payments. These modifications include the applicant making a proposal either by themselves or with the assistance of a third party as to having a new agreement formed with the lender. It is up to the lender whether or not the proposal or the application is accepted. They may enter into negotiations with the borrower or third party to make an agreement that all parties involved will be benefitted from. Of course these modifications are not for everyone. First, not every person is eligible, and second, not every person wished to stay in their home for the period of time that may be needed.

Financially Unstable

The individuals who can no longer afford to make their payments every month may want to consider the mortgage home loan modification. The individual does not have to let the loan go into a state of delinquency with the Federal loan modification program. The payments only have to be late in most instances but even in with this requirement, there are some exceptions if the individual or family has proof that they will be late or not able to make future payments. This proof can come from the notice of a job loss or wage cut or similar events.

Technical Requirements

There are requirements that must be met concerning the loan itself such as the principle balance that remains as well as the type of residence that the mortgage is taken out on. The residence does have to be the primary living location of the family and has to be a single family home between one and four units. The amount permitted on the principle is according to how many units the home consists of. Other requirements include that the loan must have been taken out before January 1 of 2009 amongst others. With some of the requirements, there are exceptions depending on the situation.

Living Arrangements

One factor to consider when thinking about obtaining a loan modification is how long a family intends on staying in that residence. For those individuals who aren’t sure that they want to keep the home or have the responsibility of a mortgage may not want to opt for a modification but for a short sale instead. This means that their home is sold to another buyer and the borrower is free from the mortgage and can look for another, perhaps less expensive place to live.

Family Circumstances

Many of these items depend on the family circumstances. These should be well-thought through before going ahead with a mortgage home loan modification agreement. The negotiation process can take unnecessary time if the family decides against remaining in that home. It is recommended that the individuals involved seek professional advice concerning their situation and what would be best for them. They can find free advice online if and when they want to have a discussion with a fully qualified expert without any strings attached.

Steve