Will Chase still approve loan modification after 3 month trial period, lost job, now receiving Unemployment benefits?

by deedee
(California)

We had been approved with the HAMP program thru Chase Mortgage, we finished the 3 month trial period, gave them 30 Days updated paychecks. Finally received "Permanent Loan Modificaton Agreement" (Which is incorrect), however in the long process of this, now I am unemployed receiving Unemployment Insurance Benefits. My question is, will Chase consider my unemployment income to qualify me for my HAMP loan modification? Please advise.

Mortgage Loan Modification Answer:

Under HAMP loan modification guidelines, you can use your Unemployment Insurance benefits as income to qualify. However, don't forget the fact that your lender, Chase, wants to make sure you can afford the new monthly payments.

If your unemployment insurance benefits equal your previous wages, then it doesn't change the calculation of your finances since the same amount of income is still coming in. Your debt-to-income ratio requirements remain the same and should be satisfactory to your lender.

However, if your unemployment income is considerably lower than your previous wages, your financial picture has changed. Unfortunately, your lender may have to re-evaluate your situation if they learn that your finances are now different.

The change in your situation is a common one while waiting for a loan modification approval. The process takes so long that changes in a homeowner's finances while waiting could affect the outcome of their permanent loan modification agreement.

If you are working with a third party to negotiate your loan modification with Chase, please consult with them as to your next steps. If not, you may want to do a free consultation with an experienced loan modification negotiator to figure out the best way to handle the change in your employment status.

I highly recommend No Upfront Fee Loan Modification as the best option to explore first. Read the reasons why.

Good luck and all the best to you.

Comments for Will Chase still approve loan modification after 3 month trial period, lost job, now receiving Unemployment benefits?

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Aug 17, 2010
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Making 7th Trial Mortgage Modification Payment- 2 times denied
by: Anonymous

I have equity in my home 140k - It could be this a reason that Chase is not interested in my mod? I paid my 7 month trial period and I was turned down twice for low income (by the second time, I showed 25% higher income but i was denied anyway, for low income". I want to reaply. Should I have to continue making trial payments? I was required to do 3 payments only and i did not receive any extension to this, however, they did acept me re apply...
someone has similar home equity situation?

Jul 18, 2010
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Denied after the 3 month mortgage loan modification trial
by: Anonymous

i have gone through loan modification trial and still paying the loan also was approve for the prement but the forms were wrong due my husband past away he had to sign the forms also. i went ahead and sign the forms and the bank me told to send and fax the death cert. and forms. i did and there was no responds,
i called the could find the forms or cert, i wrote my hardship stating he past away and fax cert, now i told to resumit for the loan modification again i did and i got letter a few days ago saying i am deny, now what,
help

Mortgage Loan Modification Answer:
What did they give as a reason for the loan modification denial? The only reason I can think of that they would deny a permanent modification is that your income has been reduced since you no longer have your husband's income. (Sorry to hear that he passed away) The bank may have re-analyzed your application and decided that the reduction in income will no longer qualify you for the loan modification. Your income may no longer be enough to afford their proposed modification rate and terms.

Again, since I don't know the reason for the denial, the above is only a guess at what the bank may be thinking. Please follow up with your bank to see if you qualify for any other programs they have. If not, you may need to educate yourself of all your other options so you will have an idea of how to move forward.

Best of luck to you.

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