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Step 1
Chase says that the very first thing its borrowers should do if they are at risk of missing a payment is call the bank at the phone number on their mortgage statement. "It is never too early to start the discussion," the bank says.
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Step 2
When a borrower calls Chase to discuss payment difficulties, the initial discussions will be handled through the bank's customer care department.
The bank tells Bankrate.com, the Web's leading aggregator of financial rate information, "A borrower who goes into default will be assigned an individual Chase representative who is trained to understand the customer's individual financial situation. The representative will help the customer try to bring the loan up to date.
"If the problem is long term, each customer will be assigned to a homeowner's assistance representative. The specially trained representative gets to know the customer's individual circumstances, income and expenses." -
Step 3
Chase advises its borrowers to have their loan information, including the loan number that can be found on their statement, when they call so as to get the conversations started quickly.
As the process moves forward Chase will probably ask borrowers for additional information.
For example, the bans says, in the loan modification process the bank will ask borrowers to provide their two most recent bank statements, their two most recent pay stubs, their most recent federal income tax returns and a hardship letter. -
Step 4
Chase says it continues to explore and implement additional ways to assist customers and help them keep their homes. These include:
1. The Foreclosure Rescue Program. Designed to help any customer serviced by Chase at any point during the foreclosure process. Up until five days before a foreclosure, Chase will put it on hold and review the file to see if anything can be done to prevent foreclosure.
2. The Enhanced Streamline Refinance Program. Uses prequalification and streamlined documentation to convert more customers with Chase-owned adjustable-rate mortgages to fixed-rate mortgages with minimal processing.
3. Local efforts. These include foreclosure prevention meetings at a local hotel or church that connect Chase representatives face-to-face with struggling homeowners. Sponsored by community groups, the government and by Chase itself, the meetings have shown promising early results, according to the bank. -
Step 5
Chase says it is very willing to help its borrowers keep their homes and cites a number of initiatives it's taken since the start of the mortgage crisis.
In December 2007, the bank joined with government and industry leaders to support a new federal initiative designed to keep more homeowners in their homes. The five-year, interest-rate freeze for qualifying borrowers is intended to help Chase further streamline its process to review and approve loan modifications for qualified homeowners.
In February 2008, Chase also joined with other major servicers in announcing Project Lifeline, which can stop the clock on the foreclosure process for 30 days for homeowners who are 90 days or more behind on their mortgage payments.
All the bank's efforts attempt to get homeowners in contact with them to see if a modification or refinance deal can be worked out.
According to Chase, the lifeline is being offered to people with any residential mortgage for their primary home -- not just subprime borrowers. -
Step 6
For those hoping to pay some of what they owe and pay the rest later the situation is not that great: Chase accepts full monthly payments only.
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Step 7
The chances of a borrower in trouble working out a deal with Chase are good. The bank reports that it has modified or refinanced $3.6 billion of subprime ARMs and is processing $3 billion more. Together, that's 51 percent of all Chase-serviced subprime ARMs (59 percent of the total dollar amount) that were due to reset by March 2008.
For prime borrowers, Chase reports it has made more than 1 million contact attempts, resulting in the modification and refinancing of more than $415 million of prime ARMs. -
Step 8
Chase charges no prepayment or modification fees when the homeowner's assistance department modifies the loan to make it affordable. However, borrowers who miss a payment may be charged a late fee or other penalty fees. For this reason, it's important to contact Chase before missing a payment.
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Step 9
Chase says it knows that worried homeowners might be more comfortable seeking help from a trusted community group and might not respond to the company's outreach.
As a result, Chase created its Homeownership Preservation Office in 2004 to make it easier for those nonprofit community groups to talk directly to Chase about customers at risk of losing their home.
Chase then works with the community group to provide in-depth counseling to the homeowner in distress.
Borrowers should contact their city's housing department to find information about city foreclosure prevention programs or to be directed to a community group to speak with about preserving their home ownership.
Homeowners can also call HOPE NOW at (888) 995-HOPE (4673) to speak with a HUD-approved counselor to receive foreclosure avoidance help.
Comments
annegamm said
on 3/7/2009 I have had nothing but trouble working with Chase. Their representatives have been bullyish and rude, even accusing me of trying to scam them. I have had my paperwork lost and my case has been reassigned to over five case workers. How do I know what is going on with my case if I keep getting a different representative each time. I resent Chase, their tactics and their power mongering
Sondrac said
on 6/13/2008 This is truly a great article and very helpful. I originally came from New York .