Tuesday, February 09, 2010

Foreclosure Help - The Chase is On

Consumer Affairs reported this week that Chase Home Finance has seemingly been making its own rules for utilizing the federal incentives meant to prevent foreclosures.

The $75 billion dollar federal program made strong guidelines for the participating mortgage companies. In return for agreeing to follow the guidelines, the mortgage companies are paid to modify loans, lowering payments to no more than 31% of income, lowering interest rates, and hopefully helping consumers to keep their homes.

It seems as though Chase turned down a large percentage of potential modifications for a trumped up reason it invented, citing, "Your hardship is not of a permanent nature."

So many homeowners were turned down that the Treasury Department explicitly barred the banks from using that as a legitimate reason for denial. They are telling homeowners that were denied to reapply, although Chase has not officially agreed to reassess their decisions. Chase in particular has been "outed" as being the worst offender.

Anyone who is struggling to meet mortgage payments or facing foreclosure should read this article, and approach their mortgage company with the knowledge that there are programs available to help.

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