The first step is to determine who exactly holds your loan. This is not a complicated step, nor is it an unusual one. Many borrowers pay their monthly mortgage fees to their lender without knowing whom actually holds the mortgage. To find out as a Chase borrower, simply call Chase and speak to a customer service representative, who should then be able to provide you with the requested information.
If your loan is insured by Freddie Mac or Fannie Mae, it is an extra bonus for you, since you would then be qualified for a government program that limits your payments to no more than roughly one-third of your monthly income.
First, you will be able to get a lower interest rate. Another advantage is that your overall monthly payments will get lowered to around 30% of your income. Even more, you won't have to pay any fees for implementing these modifications. However, your rate will be adjustable and it can get back up in a few years.
The good part is that by that time you will probably have a better financial situation and paying your mortgage won't be a problem anymore.
You will need to show the ability to afford a reasonable lower monthly payment. If the lender is unable or unwilling to reduce the monthly payment to an amount you can afford, you won't have a successful loan modification.
You will also need to include W-2's, current credit report, pay stubs, federal income tax returns, bank statements, etc. In order to determine whether you qualify for a loan modification, lenders take a close look at your debt to income ratio (Debt Ratio = Total Monthly Payments / Gross Monthly Income).
You must have not previously refinanced or modified a loan. The amount you must pay monthly will be up to 40 percent of your income. To ask for consideration from Chase, you must write a letter stating such and you must provide as much financial documentation as possible, such as paycheck stubs, tax returns and other related documents
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