We have more debt than we can handle. We have just seen a lawyer about bankruptcy. Even with bankruptcy our mortgage may be too much for us.
I have a mortgage with Chase – after banruptcy will they work with me to lower payments? I have never been late with payments.
Good question but only time will tell. Banks talk like they will bend over backwards to help but they really don’t., most of the time. But there economic times we are living through have created more of a possibility that they may be accommodating.
Chase advertises that they want to help you keep your home. They say:
What are the foreclosure alternatives for borrowers who are having trouble making their payments? What actions should a borrower take to pursue these alternatives?
There are several alternatives for a borrower that is having trouble making payments. If you are having difficulty making your mortgage payments, contact Chase immediately (at the number listed below), to pursue options available. Some of the alternatives available include:
- Repayment Plan: A Repayment Plan is used when you have experienced a temporary reduction in income or financial hardship. This option is structured to cure the delinquency over a period of time by paying a full amount, plus a partial payment on the delinquent amount, each month. An initial down payment is required. The amount of the partial payment will be based on your financial situation and your initial down payment. It is important to note, a repayment plan will only be considered if there has been a positive change in your financial situation. For example, if you were previously unemployed but have found employment, we may consider a repayment plan provided you are able to make an initial down payment, and you have the ability to pay the increased monthly amount due while keeping your real estate taxes paid current.
- Loan Modification: If you have experienced a permanent reduction in income due to a severe medical hardship, loss of a spouse, legitimate increase in expenses, or other permanent hardship, a loan modification may be offered. Based on your individual financial situation, Chase may be able to change one or more of the original terms of your loan and reduce the monthly payment amount. It is important to note, a modification is done only in hardship situations.
- Pre-Foreclosure Sale: “Listing your Property for Sale.” If you believe that you will continue to have difficulty making your mortgage and real estate tax payments, and that your hardship or reduced income is permanent, you may want to consider listing your property for sale. Housing values in your area may have declined which may result in an offer to purchase that is less than the total debt due on the property. In some instances, Chase may accept less than the amount we are owed, but in order for us to consider this option, you must submit a package of financial information along with information about the proposed sale. Call us for details.
- Deed-in-lieu of Foreclosure: A deed in lieu of foreclosure is essentially a transfer of property to the lender in consideration for forgiveness of the debt. There are some advantages to this process over foreclosure. One benefit is that Chase may waive any right to a deficiency judgment against you if the property is subsequently sold for a loss. A second advantage is that while a deed in lieu of foreclosure may be noted on your credit bureau record, you avoid having a completed foreclosure on your credit bureau record. We will consider accepting this option if the reason for the delinquency was beyond your control and you have been cooperative in seeking alternatives to foreclosure.
- Short Refinance: There are many residential lenders in your area that may be able to assist you in obtaining a third-party loan to payoff your defaulted loan with us and give you a fresh start.
- Partial Claims-for FHA Loans Only: Chase may be able to work with you to obtain a one-time payment from the FHA Insurance fund to bring your mortgage current. You may qualify if your loan is at least 4 months delinquent, but no more than 12 months delinquent, and you are able to begin making full mortgage payments. When your lender files a Partial Claim, HUD will pay your lender the amount necessary to bring your mortgage current. You must execute a Promissory Note, and a Lien will be placed on your property until the Promissory Note is paid in full. The Promissory Note is interest-free and is due when you pay off the first mortgage or sell the property.
- Full Reinstatement: Full repayment of all past due monies, including foreclosure expenses, to bring the loan current. This is the best option as it completely ceases foreclosure and any further collection action.
- Full Payoff: A Payoff, in which the note is paid in full, leaves no loan balance, and the lien against the real estate is released by Chase Home Finance LLC.
Chase also has a telephone number to call for more information. Give them a ring at 1-866-550-5705 and explain the situation to them. Talking to Chase at this point can only be beneficial since it will not alter the underlying issue that you can’t afford your mortgage.