Underwater home loan assistance for Chase homeowners may be available to those who are facing a severe negative equity situation, as there have been a wide range of homeowners who have seen their property values decline over the past months. Underwater mortgages are becoming a major problem in some areas across the nation and, for homeowners who are in a situation where they owe more on their home than their home is actually worth, outcries for solutions have been increasing.
Homeowners with Chase may have options through the Making Home Affordable Program for more affordability in their underwater mortgage as modifications have been used to assist homeowners in a negative equity situation. While interest rate reductions and term extensions have been popular among many mortgage servicers, there have been homeowners who have called for a reduction in their mortgage principal due to the fact that they have seen such a severe drop in their property value.
While Chase and other financial institutions participating in the Making Home Affordable Program may be able to offer principal forgiveness for homeowners through either the Principal Reduction Alternatives Program or from permanent home loan modifications, the use of principal reductions have not been common by many mortgage servicers. Homeowners who receive a permanent home loan modification may be able to have their principal reduced by $5000 over a five-year span if they continue to make on-time payments.
However, homeowners have called for more drastic reductions in principles as many have seen the value of their property drop to a point where a simple $5000 reduction in their principle will do little to help their situation. Yet, financial institutions who are being called on to reduce principles often point out that, when it comes to affordability and foreclosure prevention, principal reductions are unhelpful and, for this reason these banks have chosen to offer underwater mortgage assistance through other methods.
While many of the major mortgage servicers have offered some principal reductions, this, again, is not an easy option for homeowners to acquire. Yet, financial advisers do still prompt homeowners to either contact a certified housing counselor or their primary mortgage servicer if their underwater home loan is becoming problematic and they fear foreclosure. Again, not all homeowners may qualify for or have opportunities to receive principal forgiveness, but foreclosure prevention efforts on underwater home loans are still available and in place to address issues which may help homeowners in a negative equity situation avoid the loss of their home.