If you have tried to get a Chase loan modification and have been denied, you may still have options.

The problem with homeowners trying to get a loan modification approved themselves is that they do not understand the guidelines like a professional does. Many homeowners believe that you should lie to you lender and tell them that you make hardly any money or that you make more money than you do. This is not the case at all. Your lender wants to see a specific debt to income ratio, which normally shows that you would be able to make your monthly payments if they were lowered.

Makes sense, right? Why would your lender take all the man hours to modify your loan if they knew you were just going to end up defaulting on it anyways? That is why they have these specific guidelines set up.

One loan modification company is having great success with the “Obama Mortgage Plan”, otherwise known as the HAM program. While there are many articles on the internet doubting the effectiveness of this program, they are having great success. It all comes down to getting the files properly prepared so that you are within your lenders guidelines.

If you get qualified for the Obama program, you will be in great situation to lower your monthly mortgage payments. With this program you lender will do a few things to lower your monthly payment to 31% of you net pre tax monthly income. Here’s what they do:

1. Lower your interest rate to as low as 2%. If this does not lower your payment enough, they move to step 2.

2. Extend your mortgage terms. If you have a 30 year loan, they will extend it to 40 years to further lower your payment. If this is still not within the 31% guidelines, they move on to step 3.

3. Reduce your principal. While this is pretty rare, it does happen. Though usually, lowering your interest rate and extending your terms will drop your mortgage payments pretty low.

With home prices falling so low, many people are concerned about getting a principal reduction. They should be concerned with a payment reduction! I know it stinks that your house is worth less than you owe on it, but right now you should just focus on lowering your payments to something you can afford so you can still live in it! A 2% interest rate is going to cut your monthly payments just like cutting your balance would anyways, you will just have to stick it out until the markey comes back up…whenever that will be. I’m in the same boat, my house is negative $140,000 and I put 20% down on it in ’05 and never refi’d at all.

For a great company that can help get you qualified for a Chase loan modification, just visit the links below.