Credit Card Center Advertiser Disclosure

Posts: 95
Registered: ‎09-03-2009
0 Kudos

Can anyone answer a question about loan modification for a severe hardship?

I am now totally disabled and make 40% less income.  I already have spoken to the Chase Mod Department and they have been actually really helpful and did say I quailify for a modification and sent out an application.  What I don't understand is how they figure for my case how much the monthly payments would decrease.  My mortgage with taxes is $520 and the monthly HOA is $153 but I pay it seperate, is not included in the mortgage payment.  My gross monthy income is $1339.  I went to a site that has a mod calculator and below is the result.  My question is because the HOA fee in not included in the mortgage how can the monthly payment be reduced to $415?  Does anyone know how this works?  I called Chase a few times and they said the underwriters handle this and could not answer my question.  They said that I would more than likely get a 2% reduction in my interest rate (which is now 5.5%) and a reduction in prinicpal because of my severe hardship.  It will take a little while to find out for the final outcome but I need to know now how this is figured.  I am doing everything I can to not become homeless and need to know how this is figured with the HOA being paid outside the mortgage.  I want to be able to sleep at night.


Thank you for taking the time to read this.


his is Your Current Debt-to-Income (DTI) Level
Target DTI under the Home Affordable Modification
Potential New Monthly Payment If You Qualify
Potential Monthly Payment Reduction If You Qualify
Frequent Contributor
Posts: 323
Registered: ‎07-08-2012
0 Kudos

Re: Can anyone answer a question about loan modification for a severe hardship?

Depends what loan mod It is. If its HAMP then the HOA's are tied into the new payment. Lenders want your target mortgage PiTI+HOA's at 31% of your gross income. Now keep in mind that because you are on fixed income and do not pay taxes they will likely say your gross income is higher (sucks I know). But that's industry standard. They adjust your income upward to accommodate for this. So that payment they are quoting you at is probably lower than what it will really be.

However, Chase also has its own version of HAMP called "CHAMP". Not sure exactly how it's calculated but I'm sure it's almost the same. Just without the government qualifications.

I would say you will still benefit with a lower payment but I wouldn't go off of that chart you posted. As it also does not factor in principal reduction if they actually offer it (very hard to come by). I know they "told" you that you likely qualify, but trust me I wouldn't take any word for it without seeing it in writing. Nothing is guaranteed until you get through the trial modification period of 3 months and sign the paperwork.

Hope this helps.
Posts: 95
Registered: ‎09-03-2009
0 Kudos

Re: Can anyone answer a question about loan modification for a severe hardship?

Thank you for your reply Kozmo.  Actually I do pay taxes on my income as for now it is long term disability and my monthly gross income is $1,339.  I had a long talk when I initially talked with Chase which my therapist called for me to state my situation.  I was told I would qualify for a 2% interest rate and principal reduction.  I sent the paper work in on December 23.  But my biggest question is if they include the HOA fee in, how does that work because I pay it myself.  Chase already pays my property taxes with  escrow.  

Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.

† Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
‡ Credit cards for FICO Score ranges: The score ranges are guidelines based on internal myFICO analysis of actual applicant approvals, and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range. These ranges were not provided by any card issuer.

* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.