Will Chase still approve loan modification after 3 month trial period, lost job, now receiving Unemployment benefits?
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.
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Good luck and all the best to you.